The global automotive hydraulics system market is expected to grow by 2.9 percent CAGR from $45.1 billion in 2024 to $55.1 billion by 2031, driven by advancements in electro-hydraulic systems, regenerative braking technology, and lightweight composite materials.

Automotive hydraulics has been a cornerstone of vehicle design for decades. This technology, which controls a number of vital functions such as braking, steering, and suspension, is important for vehicle safety, comfort, and performance. The automobile sector is facing substantial transition as a result of sustainability, electrification, and the push for self-driving cars, which are reshaping hydraulic systems in novel ways caused by technological advancements and market trends.

Persistence Market Research predicts a 2.9 percent CAGR growth in the global automotive hydraulics system market from $45.1 billion in 2024 to $55.1 billion by 2031, highlighting the industry’s importance in the transition to electric and autonomous vehicles. This blog will explore future trends in automotive hydraulics, focussing on innovations driving this sector forward.

Hydraulics in modern automobiles

Hydroelectric systems in vehicles utilise fluid mechanics principles, utilising pressurised fluids like oil to generate mechanical movement or force. Traditionally, hydraulics have been integral to vehicle braking systems (hydraulic brakes), steering (power steering), and suspension systems, providing smoother rides and better handling. As vehicles advance, the demands on hydraulic systems are evolving.

The future of automotive hydraulics will involve innovation to address challenges such as weight, power consumption, and environmental impact while maintaining the efficiency and reliability of hydraulic systems.

Key innovations in automotive hydraulics

Electro-hydraulic systems, a cutting-edge advancement in automotive hydraulics, combine the precision of electronics with the power of hydraulics, showcasing the integration of electrical components. Electro-hydraulic systems combine electronics with hydraulics, reducing power consumption and improving response time. They are used in advanced braking systems, active suspension, and steering systems, offering precise control, reduced weight, and improved fuel efficiency. These hybrid systems are already being used in advanced braking systems.

As electric vehicles (EVs) and hybrid electric vehicles (HEVs) gain market share, regenerative braking technology is becoming increasingly common. While traditional hydraulic braking systems convert kinetic energy into heat, regenerative braking systems capture that energy and store it for later use. Some systems combine both hydraulic and electric components, creating a regenerative hydraulic braking system that can significantly extend battery life in EVs and reduce fuel consumption in conventional vehicles.

Companies are prioritising the development of hydraulic systems that can be integrated with electric vehicles (EVs) and hybrids, requiring advanced braking systems beyond traditional hydraulics.

Hydraulic systems are essential in vehicle suspension, alongside braking and steering. The future of automotive suspension technology is moving towards active suspension systems that dynamically adjust based on road conditions and driving behaviour, using electro-hydraulics for smoother rides and better handling.

Innovations like active body control (ABC) systems, which use high-pressure hydraulic systems controlled by electronic sensors, allow for real-time suspension adjustments. These systems provide better cornering and stability, making driving safer and more comfortable.

The rise of autonomous vehicles presents new challenges for traditional hydraulic systems, as these vehicles rely on sensors and algorithms for precise, real-time adjustments to braking, steering, and suspension. Electro-hydraulic systems offer a solution, allowing for faster, more accurate control over vehicle functions. As AVs require more automated braking and steering interventions, electro-hydraulic systems will likely play a key role in enabling these technologies.

Lighter, more efficient materials

The future of automotive design is focussing on weight reduction, particularly with the rise of electric vehicles (EVs). Advancements in material science enable manufacturers to create lighter, more efficient hydraulic components without compromising strength or performance.

The development of lightweight composite materials for hydraulic systems, such as high-strength polymers and advanced alloys, reduces the overall weight of vehicles, thereby improving fuel efficiency and reducing CO2 emissions. These lighter hydraulic systems are important for electric vehicles, which balance the weight of heavy batteries with the need for efficiency.

Sustainability and environmental considerations

As the world shifts toward greener technologies, automotive hydraulic systems are under pressure to become more environmentally friendly. The use of hydraulic fluids, which are often petroleum-based, has raised concerns about environmental pollution and disposal. This is pushing manufacturers to innovate with biodegradable hydraulic fluids and eco-friendly systems.

The next generation of hydraulic systems is expected to incorporate improved sealing technologies and leak detection systems to address the common issue of hydraulic system leakage, which leads to fluid loss and environmental contamination.

Additionally, hydraulic systems are increasingly being designed with sustainability in mind, using materials that are easier to recycle and reducing energy consumption during operation. The move toward electrification also supports this trend, as electro-hydraulic systems tend to be more energy-efficient than traditional fully hydraulic ones.

Market landscape

The steady growth in the automotive hydraulics market, projected to reach US$55.1 billion by 2031, reflects the continued demand for hydraulic systems across various vehicle categories. Although electric vehicles and autonomous vehicles are gaining momentum, traditional hydraulic systems will still be relevant for a considerable time, especially in commercial vehicles, off-road vehicles, and heavy-duty trucks that rely on robust hydraulic components for performance.

However, future market trends will see significant changes in product development and design, with increased demand for advanced electro-hydraulic systems, regenerative braking technologies, and lightweight components, aligning with global fuel efficiency and emissions reduction.

Conclusion

The future of automotive hydraulics is one of innovation and adaptation. As the automotive industry embraces electrification, autonomy, and sustainability, hydraulic systems will evolve to meet new demands while maintaining their core advantages of power, precision, and reliability. Electro-hydraulics, regenerative braking, active suspension, and eco-friendly hydraulic systems are just a few of the trends shaping this transformation.

The automotive hydraulics market, set to grow at a steady 2.9 percent CAGR, presents a promising future for the next generation of vehicles, making it important for manufacturers and suppliers to stay ahead of trends and invest in new materials, technologies, and design solutions.

The agreement aims to accelerate hydrogen adoption, contribute to hydrogen technology advancement, and create synergies between Hyundai’s fuel cell technology and Škoda Group’s mobility products and projects.

Hyundai Motor Company and Škoda Group have signed a Memorandum of Understanding (MOU) to collaborate on establishing a hydrogen mobility ecosystem. The agreement was signed during the Korea-Czech Republic Business Summit in Prague by Ken Ken Ramírez and Petr Novotný.

Ken Ramírez, Executive Vice President and Head of Global Commercial Vehicle and Hydrogen Business at Hyundai Motor Company, said, “Our partnership with Škoda Group aims to accelerate hydrogen adoption, which would contribute to the advancement of hydrogen technology and carbon neutrality across global markets, including the Czech Republic. Together with Škoda Group, we strive to lead the rapidly growing hydrogen businesses by creating positive synergies between our fuel cell technology and Škoda Group’s mobility products and projects.”

The MOU covers studies on the adoption of hydrogen fuel cell systems and technologies, studies on the adoption of energy-efficient solutions for mobility projects and products, and exploring hydrogen ecosystem and value chain opportunities beyond mobility.

Both parties share the view that hydrogen will be a key pillar for a sustainable society, starting with mobility. As part of the MOU, the parties will explore the possibility that Hyundai would share its fuel cell system and technology, contributing to the acceleration of eco-friendly mobility across global markets where Škoda Group operates, including the Czech Republic.

Petr Novotný, CEO of Škoda Group, said, “We believe that hydrogen, alongside energy-efficient solutions, will play an essential role in transforming mobility for a more sustainable future. Our collaboration with Hyundai Motor Company aims at enabling us to look beyond national borders and explore wider markets where these technologies can have a larger impact. By working together, we can bring innovative, eco-friendly solutions to the global mobility ecosystem, advancing cleaner energy in the areas where it’s needed most.”

Hyundai Motor Company and Škoda Group will also conduct feasibility studies for fuel cell system applications for diverse utilisation beyond mobility. Leveraging its global expertise and insights in operating various hydrogen applications in both mobility and energy sectors, Hyundai is poised to play a pivotal role in aiding the energy transition. Hyundai Motor Group is fostering a hydrogen society through its HTWO business brand, which encompasses all its businesses and affiliates, facilitating the entire hydrogen value chain.

Hyundai Motor Manufacturing Czechoslovakia (HMMC) in Nošovice, established in 2008, has an annual manufacturing capacity of 350,000 vehicles. Considered one of the most modern car manufacturers in Europe, the manufacturing plant was also the largest foreign investment in the Czech Republic.

Nilesh Rathore, Electrification Quality Lead, John Deere Enterprise Technology and Engineering Center, Pune

Kuldeep Singh, Head – Strategic Sourcing & Supply Chain, Kinetic Green

The push-pull drivers enable 6 W of power delivery at up to 90% efficiency in a small, SOT package.

Nexperia introduced the NXF6501-Q100, NXF6505A-Q100, and NXF6505B-Q100. These are AEC-Q100 qualified, push-pull transformer drivers that enable the design of small, low-noise, and low-EMI isolated power supplies for a range of automotive applications like traction inverters and motor control, DC-DC converters, battery management systems and on-board chargers in electric vehicles (EV). These transformer drivers are also suitable for use in industrial applications like telecommunications, medical applications, instrumentation and industrial automation equipment, solar inverters, energy meters, and programmable logic controllers (PLC).

The NXF650x(A/B)-Q100 series can drive low-profile, center-tapped transformers from a 2.25 V to 5.5 V power supply with high output current (1.2 A at 5 V) and high efficiency (up to 90%). To enable small form factor designs, the devices have a 440 kHz (NXF6501 and NXF6505B) or 160 kHz (NXF6505A) internal oscillator and a gate drive circuit that produces complementary output signals to drive internal ground-referenced n-channel power switches. Alternatively, a clock signal can be applied externally to the NXF6505A and NXF6505B to enable precise control of switching harmonics or enable synchronization of multiple NFX6505x(A/B) -Q100 devices. Additionally, the NXF650x(A/B)-Q100 series employs slew rate control and spread-spectrum clocking (SSC) to deliver ultra-low noise and electromagnetic interference (EMI).

The NXF650x(A/B)-Q100 series also includes a comprehensive range of internal protection features such as over-current protection (1.7 A) with hiccup mode, under-voltage lockout, thermal shutdown, and break-before-make circuitry to ensure safe operation. Additionally, these transformer drivers have a soft-start (~5 ms) feature that prevents high inrush currents during power-up with large load capacitors. Lastly, these devices have fail-safe inputs that prevent back-powering of the local power supply and eliminate the need for power sequence management.

These devices are available in compact industry-standard footprints like the 5-pin SOT8098 (TSOT5) and 6-pin SOT8061 (TSOT6) package and safely operate in ambient temperatures ranging between -55 °C and 125 °C. 

Sanjay Warade, Sales Manager-OEM, Rockwell Automation

Pravin Bobhate, Head SCM, GKN Driveline India Ltd.

Akshatha Dayananda, Addwize Leader – Manager, Wipro 3D

Ford will use the manufacturing plant to focus on exports for global markets. 

Ford has submitted a Letter of Intent (LOI) to the Government of Tamil Nadu, confirming its intention to utilise the Chennai plant for manufacturing and export. The announcement follows a meeting between Ford leadership and the Honorable Chief Minister of the Government of Tamil Nadu as part of his visit to the United States. This strategic move will see the facility repurposed to focus primarily on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” said Kay Hart, President, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”

Further information about the type of manufacturing and other details will be disclosed in due course.

Ford had halted its manufacturing in 2021, and the recent announcement reaffirms Ford’s commitment to India as a critical market for the company’s global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500-3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.

JSW MG Motor India is transitioning to electric vehicles (EVs). The company aims to have EVs account for nearly 50% of its total sales in 2024.

JSW MG Motor India ( A joint venture between MG Motor and JSW Group) intends to move away from conventional internal combustion engine vehicles as it focuses on new energy vehicles for the future, said the company Director Parth Jindal.

The company launched its electric crossover utility vehicle ‘MG Windsor’, the first launch after JSW Group invested in MG Motor India. It has set a target to introduce a new car every four to six months and is eyeing over 50 per cent of its total sales from electric vehicles in 2024.

The group wants to bank on the new energy vehicles (NEVs). Jindal said, “So, whether that is strong hybrid, plug-in hybrid, or battery electric vehicles, these will be the cornerstone of MG. The traditional ICE (internal combustion engine), as we call it, without even a mild hybrid option, is something that we want to do away with. We are not very keen on bringing that into the country.”

However, Jindal said, “For certain models, if the technology has not developed, we may take those calls. It is not that MG will never bring it (ICE), but as much as we can avoid it, we would like to avoid (it).”

On the prospect of EVs, JSW MG Motor India CEO Emeritus, Rajeev Chaba said at present, EVs account for 35 per cent of the company’s total sales.

“We have five cars right now and Windsor is the sixth — a total of three EVs and three ICE vehicles. In the first seven months of this year, our EV sales volumes have grown 52 per cent,” Chaba said.He said, “With Windsor coming in, EVs should be more than 50 per cent of our sales.”

JSW MG Motor India has not announced the ex-showroom price of the Windsor but it is offering it at a vehicle price of Rs 9.99 lakh plus Rs 3.5/km for battery. The company has introduced an ownership plan through a Battery-as-a-Service (BaaS) offering and claimed that owning the Windsor, a full-size capable electric CUV, will be at the price equivalent of a manual engine-based compact SUV.

The Windsor is powered by a 38 kWh Li-ion battery pack and has a range of 331 km under standard conditions on a single charge. It can be charged in 40 minutes at any DC fast charge. On the localisation level of Windsor, Chaba said, “It starts at a lower level, but in the next 12 to 18 months, we intend to make it to around 80 per cent”.

Bookings of Windsor will start on October 3 and deliveries from October 12 onwards, the company said.

Last year in November, China’s largest automaker SAIC Motor inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India. Under the new structure, JSW picked up a 35 per cent stake in the JV, Indian Financial Institutions (IFI) 8 per cent, dealers of MG Motor 3 per cent and 5 per cent earmarked for company employees. The remaining 49 per cent is with SAIC.

The JC has set an ambitious target to sell one million units of passenger electric vehicles in India by 2030 when the total market is expected to be 10 million units annually.

Cabinet approves PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with an outlay of ₹.10,900 crore over two years.

The Union Cabinet has approved the proposal of the Ministry of Heavy Industries (MHI) for the implementation of a scheme titled ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for the promotion of electric mobility in the country.  The scheme has an outlay of Rs 10,900 crore over two years.

The major components of the scheme include Subsidies/Demand incentives worth Rs.3,679 crore provided to incentivise e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

MHI has introduced e-vouchers for EV buyers to avail of demand incentives under the scheme. 

The scheme allocates Rs.500 crore for the deployment of e-ambulances. This is a new initiative to promote e-ambulance for comfortable patient transport. The performance and safety standards of e-ambulances will be formulated in consultation with MoHFW, MoRTH and other relevant stakeholders.

Rs.4,391 crore has been provided to procure 14,028 e-buses by STUs/public transport agencies. CESL will carry out demand aggregation in nine cities with populations exceeding 4 million, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. Intercity and Interstate e-buses will also be supported in consultation with states.
The trucks are a major contributor to air pollution. Rs.500 crore has been allocated incentives for e-trucks. Incentives will be given to those scrapping certificate holders from MoRTH-approved vehicle scrapping centres (RVSF).

The scheme addresses the range anxiety of EV buyers by promoting the installation of electric vehicle public charging stations (EVPCS). These EVPCS shall be installed in the selected cities with high EV penetration and on designated highways. The scheme proposes the installation of 22,100 fast chargers for e-4 Ws, 1800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws.

Given the growing EV ecosystem in the country, the test agencies of MHI will be modernised to deal with the new and emerging technologies to promote green mobility.

The scheme promotes mass mobility by supporting means of public transportation.  The primary objective of the PM E-DRIVE scheme is to expedite the adoption of EVs by providing upfront incentives for their purchase, as well as by facilitating the establishment of essential charging infrastructure for EVs. The PM E-DRIVE scheme aims to promote EVs to reduce the environmental impact of transportation and improve air quality.
The government is raising its Aatmanirbhar Bharat slogan by incorporating a phased manufacturing programme (PMP) which encourages domestic manufacturing and strengthening of the EV supply chain.

This initiative of Govt. of India aims to address concerns regarding environmental pollution, and fuel security and promote sustainable transportation solutions. This scheme along with its PMP, shall spur investment in the EV sector and associated supply chain while creating employment opportunities. 

Panasonic Life Solutions India (PLSIND) has introduced a suite of new products and solutions at the Electronica India exhibition, aimed at enhancing performance, safety, and reliability in India’s automotive and industrial ecosystems.

The Industrial Devices Division (INDD) of Panasonic Life Solutions India (PLSIND), a leading diversified technology company, introduced an innovative suite of new products and solutions addressing the automotive and industrial ecosystems at the Electronica India exhibition. It includes the Cooling Fan Motor for Motorcycles & Scooters, 6-in-1 Sensor for vehicle stability & control, Cooling Fan for heat dissipation, Ultrasonic Gas-Flow Measurement Unit, and MEGTRON-8, a Multi-Layer Circuit Board Material.These solutions have been designed to cater to India’s evolving industrial and automotive industries, contributing significantly towards enhancing performance, safety, and reliability. The five new solutions were launched by Manish Sharma, Chairman, Panasonic Life Solutions India (PLSIND), in the presence of Tadashi Chiba, MD&CEO, PLSIND; Narayan Kumar, Divisional Director, INDD, PLSIND; and other delegates. 

Manish Sharma, Chairman, Panasonic Life Solutions India (PLSIND), said, “India’s electronics industry is one of the key cornerstones for India’s economic growth, and industrial devices play a pivotal role in driving this development. At Panasonic, we are proud to contribute to India’s manufacturing economy through our diversified range of electronics, electromechanical devices, and energy solutions. Our industrial enterprise solutions utilise new-age technologies enabled with Japanese trust (technology) that are helping OEMs address some of the critical challenges, enabling them to innovate and gain a competitive advantage. We at Panasonic are committed to supporting India’s manufacturing growth journey and thus contributing to the overall development.”

Narayan Kumar, Divisional Director, Industrial Devices Division (INDD), Panasonic Life Solutions India, said, “A major share of India’s economic landscape is dominated by the automotive and industrial ecosystems. As a committed enabler for our customers, we at Panasonic Industrial Devices Division (INDD) believe in offering new technology devices and solutions that are designed to cater to the unique needs of our customers. Be it optimum performance, efficiency, or reliability, all the solutions are enabled with new-age technology that helps improve the product quality, increase productivity, and thus save costs.”

The new Cooling Fan Motor is a lightweight, durable, and high-heat-resistant flat-coreless motor designed for two-wheelers, offering effective engine cooling and improved fuel efficiency in the radiator motor line-up. It features a unique single-bearing structure, equipped with a constant-load brush spring to optimise performance and extend its lifespan to an impressive 3,000 hours—three times longer than current models.

Application: This motor is designed for reliable operation in submerged conditions, providing versatility and durability. Its thin profile ensures effective cooling performance, making it an ideal solution for premium two-wheelers.

The 6-in-1 6DoF Inertial Sensor, introduced in India, measures vehicle acceleration and angular rate across three axes, providing critical information for enhanced vehicle safety and stability, and will be showcased at the Electronica India exhibition. These sensors adhere rigorously to the ISO 26262 Functional Safety Standards, including the Automotive Safety Integrity Level (ASIL-D), reflecting their robustness and dependability in mission-critical applications.

Application:  Vehicle safety, Electronic Stability Control (ESC), Anti-lock Braking System (ABS), Autonomous driving applications, and Vehicle-to-X (V2X) communication to name a few.With the trend of increasing heat output from the engines, there are an increasing number of cases where the small fans do not have enough air volume. The new cooling fan is equipped with a unique hydrodynamic bearing and is designed to operate across a wide temperature range. This fan delivers exceptional performance even under harsh conditions. It maintains quiet operation while enduring shocks and vibrations due to Panasonic’s proprietary precision machining technology and CAE (Computer Aided Engineering) technology.

Application: LED Head Lamp, ADAS, Infotainment, Cluster, DC-DC Converter, 5G/Customer Premise Equipment. This fan is suited for critical applications such as ADAS-related ECUs, LED headlamps, and 5G devices, ensuring optimal thermal management in electronics operating between -40°C to 95°C.

The ultrasonic gas flow measurement units are ultrasonic measurement units for application in smart gas meters. It provides high accuracy (up to ± 1.5%) over a long period of time, is compact and modular, and allows for easy integration. Additionally, these meters are compatible with multiple gases, such as air, oxygen, nitrogen, hydrogen, helium, carbon dioxide, nitrous oxide, argon, etc. With a measurement range of up to 7.2 m3/hour, these are already popular in European countries for smart gas meter installations. Additional features such as a shut-off valve and seismic sensor further enhance its utility, making it an indispensable tool in modern gas metering applications.

Application: Smart Gas Meter installations

Under the Electronic Materials range, INDD introduced Multi-Layer Circuit Board Materials (MEGTRON-8), best known for the industry’s lowest transmission loss, resulting in reduced power consumption. The new materials support 800 Gigabit Ethernet (GbE) used for next-generation high-speed communication networking equipment such as routers, switches, optical transmission equipment, servers, AI servers, etc. The MEGTRON 8 series contributes to a larger capacity and offers about a 30% (28 GHz) improvement in transmission loss compared to its earlier version, MEGTRON 7.

Application: Networking equipment (Routers, Switches, Optical Transmission Equipment, Servers, AI Servers, etc.)

The Industrial Devices Division (INDD) showcased their comprehensive range of Automotive, Industrial, and Telecom ICT devices at electronica 2024.

Shailesh Chandra previously served as the Vice President of SIAM, and succeeds Vinod Aggarwal, Managing Director & CEO of Volvo Eicher Commercial Vehicles Ltd.  

The Executive Committee of Society of Indian Automobile Manufacturers (SIAM), the apex body representing the country’s leading automobile manufacturers, elected Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, as its new President for 2024-25.
The new office bearers were elected during the Executive Committee Meeting. The members of SIAM also elected Shenu Agarwal, MD & CEO, Ashok Leyland Ltd., as the Vice President of SIAM for 2024-25.  Satyakam Arya, CEO & MD, of Daimler India Commercial Vehicles was elected as the Treasurer of SIAM for 2024-25.

The Society of Indian Automobile Manufacturers (SIAM) is an apex national body representing all major vehicle and vehicular engine manufacturers in India. SIAM recently concluded its 64th Annual Convention focused on “Aatmanirbhar in automobile supply chain & leveraging India’s potential in global Markets.

Ravi Patil, General Manager – Rapid Prototyping, DesignTech Systems Pvt Ltd

The 64th Annual Convention of SIAM focused on “Sustainable Mobility Journey towards Viksit Bharat,” with industry leaders and policymakers discussing sustainable mobility’s role in achieving India’s Viksit Bharat goals by 2047.

The 64th Annual Convention of Society of Indian Automobile Manufacturers (SIAM) focused on the “Sustainable Mobility Journey towards Viksit Bharat” with industry stalwarts and policymakers discussing the role of sustainable mobility in achieving Viksit Bharat goals by 2047.

The Hon’ble Prime Minister of India, Shri Narendra Modi, emphasised on the need for the Automobile sector to set an example for others to follow and said, “The road ahead demands that our progress is rapid while also being sustainable. Working on greener and cleaner mobility is a vital step in this direction”.

Chief Guest, Nitin Gadkari, Hon’ble Union Minister of Road Transport & Highways, Government of India, highlighted the Government’s initiatives and vision for sustainable transportation, stating, “The automobile industry plays a pivotal role in realising the Prime Minister’s vision of transforming India into a 5 trillion-dollar economy and elevating it to the third largest economy globally. Our ambition is to extend it as the number one auto manufacturing industry worldwide. As we target a carbon-neutral status by 2070, innovation and sustainable practices in the auto sector are crucial.”

Guest of Honour, Mr. H. D. Kumaraswamy, Hon’ble Union Minister of Heavy Industries and Steel, Government of India, spoke on the critical importance of industrial growth aligned with sustainability goals. He remarked, “Enhanced by our Prime Minister’s sustainability pledges in Glasgow and robust Make in India initiatives, we are aggressively promoting electric mobility. Government policies are geared to fuel this transition, fostering a conducive environment for industry growth and sustainable development.”

Vinod Aggarwal, President of SIAM and Managing Director & CEO of Volvo Eicher Commercial Vehicles Ltd., highlighted the automobile industry’s role in driving sustainable mobility. He stated, “The automobile industry is keeping pace and setting the standards for sustainable growth. Contributing 6.8% to the GDP and witnessing an impressive 12.5% growth last year alone, the industry’s turnover has soared to ₹20 lakh crore. As we look towards ‘Viksit Bharat 2047’, SIAM’s commitment to decarbonisation and safety is steadfast. With initiatives like the FAME program fuelling a 90% growth in EVs Passenger Vehicles, along with Ethanol and Gaseous fuels we are steering towards cleaner, greener mobility.”

Shailesh Chandra, Vice President of SIAM and Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., emphasised the need for a collective effort to accelerate the transition to sustainable mobility. He said, “The government’s strong commitment to sustainable mobility and the constant support from the ministries have facilitated the industry’s transitioning to sustainable mobility. We are fully aligned with the government’s vision of ensuring sustainable, safe, and affordable transport solutions, and achieving net carbon-zero in future.”

Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM), was also present during the session. He highlighted SIAM’s various initiatives and commitment towards sustainable mobility.

Rizwan Khan, Sales Manager – India, SupplyPoint Systems

BMW and Toyota to jointly develop the next generation of fuel cell technology. Aim to launch first-ever series production fuel cell vehicle in 2028.

BMW plans to launch its first-ever series production fuel cell electric vehicle (FCEV) in 2028, thereby offering customers an additional all-electric powertrain option with zero local emissions in a BMW. The BMW Group and the Toyota Motor Corporation are pooling their innovative strength and their technological capabilities to bring a new generation of fuel cell powertrain technology to the roads.

The BMW Group and the Toyota Motor Corporation will jointly develop the powertrain system for passenger vehicles, with the core fuel cell technology (the individual third-generation fuel cells) creating synergies for both commercial and passenger vehicle applications. The result of this collaborative effort will be utilized in individual models from both BMW and Toyota and will expand the range of FCEV options available to customers, bringing the vision of hydrogen mobility one step closer to reality. Customers can expect the BMW and Toyota FCEV models to maintain their distinct brand identities and characteristics, providing them with individual FCEV options to choose from. Realising synergies and amalgamating the total volume of powertrain units by collaborating on development and procurement promises to drive down the costs of fuel cell technology.

Hydrogen is recognised as a promising future energy carrier for global decarbonisation. It acts as an effective storage medium for renewable energy sources, helping to balance supply and demand and enabling a more stable and reliable integration of renewables into the energy grid. Hydrogen is the missing piece for completing the electric mobility puzzle where battery-electric drive systems are not an optimal solution.

After successfully testing the BMW iX5 Hydrogen pilot fleet worldwide, the BMW Group is now preparing for production of vehicles with hydrogen drive systems in 2028 on the basis of the jointly developed next-generation powertrain technology. The series production models will be integrated into BMW’s existing portfolio, i.e. BMW will offer an existing model in an additional hydrogen fuel cell drive system variant. As FCEV technology is another electric vehicle technology, the BMW Group explicitly views it as complementing the drive technology used by battery electric vehicles (BEV) and next to plug-in hybrid electric vehicles (PHEV) and internal combustion engines (ICE).

The pathway to realising the full potential of hydrogen mobility includes its use in commercial vehicles and the establishment of a refuelling infrastructure for all mobility applications, including hydrogen-powered passenger vehicles. Both companies are encouraging sustainable hydrogen supply by creating demand and working closely with companies that are building low-carbon hydrogen production, distribution, and refuelling facilities.

The BMW Group and Toyota Motor Corporation are advocating the creation of a conducive framework by governments and investors to facilitate the early-stage penetration of hydrogen mobility and ensure its economic viability. The aim is to establish the FCEV market as an additional pillar alongside other powertrain technologies. The collaboration seeks regional or local projects to further drive the development of hydrogen infrastructure through collaborative initiatives.

Rujuta Jagtap, Executive Director, SAJ Test Plant Pvt Ltd

FAME-3 scheme will replace EMPS or Electric Mobility Promotion Scheme 2024 which is set to expire at the end of September.

The EV sale has come to a stalemate if compared with the last year, which has raised severe concerns for the manufacturing industry. To accelerate the adoption, the Government has announced that FAME -3 or the third phase of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme will be rolled out within two months. The decision is part of the government’s initiative to boost EV adoption across the country.

Speaking at the National Conference on Electric Mobility organised by ASSOCHAM, Union Minister for Heavy Industries- HD Kumaraswamy said, “The third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme will be rolled out within two months. We are taking a comprehensive approach to boost EV ecosystem and I call upon all stakeholders to join hands towards making India a global leader in electric mobility and towards our vision of a ‘Viksit Bharat’.”

The FAME-3 scheme will replace EMPS or Electric Mobility Promotion Scheme 2024. It will expire at the end of the current month-September. It was initially planned for a temporary 4-month period and later extended for another 2 months. This was primarily done to continue giving additional incentives to electric two- and three-wheeler players and there was an outlay of about Rs 1500 crore.

The EMPS 2024 scheme gained prominence following the expiration of FAME 2 in March this year. FAME 2 was initially launched in 2019 with a three-year term ending in 2022, but it was extended until March 2024. The two-year extension also came with an additional allocation of Rs 1,500 crore. The original outlay for FAME 2 in 2019 was Rs 10,000 crore, aimed at supporting 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.

Neelam Pandey Pathak, Founder & CEO, Social Bay Consulting

Ketan Jadhav, Partner, EAC International Consulting

Euler Motors has launched its first 4-wheeler in the small commercial vehicle (SCV) segment, aiming to meet the growing demand for cost-effective and high-performance inter- and intra-city transportation solutions.

Euler Motors, a leading commercial electric vehicle manufacturer, has disclosed its entry into the small commercial vehicle (SCV) segment with its first 4-wheeler that will offer a payload of a payload of 1000+ kg. Planned for launch in the upcoming festive season. Euler Motors’ new SCV will be designed to meet the growing demand for cost-effective and high-performance inter- and intra-city transportation solutions.

The HiLoad EV, a successful 3-wheeler, is set to launch a 4-wheeler with market-defining attributes. It will offer long driving range, high payload capacity, ergonomic design, and real-time fleet management, important in industries like logistics, FMCG, beverages, dairy, paint, and lubricants, enhancing the driving experience. 

Estimated to achieve a market value of INR 34,900 crore in India by FY2027, the SCV segment is currently dominated by ICE vehicles. While EVs may comprise a smaller share, they are poised to grow the fastest. With EVs, customers can expect significant cost savings and achieve price parity with traditional fuel vehicles, making them a compelling choice for businesses aiming to improve their operational efficiency and sustainability. Help customers achieve not only greater efficiencies and business ROI, but these vehicles will also align with the climate change commitments by the Government of India.

 Saurav Kumar, Founder & CEO of Euler Motors, said, “Commercial electric vehicles must cater to the needs of various industries, accommodating diverse volumes, payloads, and ranges. Our vision is to develop vehicles that seamlessly integrate into all industry verticals. Our study of retail and institutional customers in the SCV segment reveals that a significant number are eager to switch to or purchase EVs that deliver high performance, extended range, and advanced features to elevate the driving experience and optimise fleet management. This new 4W vehicle is a milestone, as it will meet all these criteria, making it the perfect, trustworthy companion for both long and short cargo transportation journeys.” 

Euler Motors’ expansion into the SCV segment, highlighted by several industry-first features, aligns with its mission to accelerate the adoption of electric vehicles, and to promote sustainable urban mobility – through innovation designed for and from India.

Kaustubh Deshpande, Founding Partner, Imoto

Passenger Vehicle sales dwindled slightly, but auto manufacturing showed resilience in July 2024, with strong growth in the Two-Wheeler and Three-Wheeler segments. The industry adapts and eyes the festive season for renewed momentum.

The automotive sector witnessed active production of Passenger Vehicles, Three-wheelers, Two-wheelers, and Quadricycles, reaching 2,437,138 units in July 2024. This production figure captures the capabilities of the automotive manufacturing sector to serve domestic and international demands despite challenges in certain segments.

In July 2024, passenger vehicle sales stood at 341,510 units, reflecting a slight decline of 2.5 percent compared to July 2023. 59,073 three-wheelers were sold, marking a 5.1 percent increase over the previous year. Sales reached 1,441,694 units, showing a healthy growth of 12.5 percent for two-wheelers.

The Passenger Vehicle segment decreased due to external economic factors and market saturation in certain areas. The financial crunch and the expectations of subsidy extension in budget announcement further.

Passenger Carrier subsegment saw an 8.7 percent increase in sales. This growth can be linked to the sector’s adaptive manufacturing processes and the rise in demand for efficient urban transport solutions.

The two-wheeler segment has been a stronghold of the Indian auto industry and saw a substantial 12.5 percent growth. This increase was driven by a 29.2 percent rise in scooter sales compared to last July.

The auto manufacturing sector has shown remarkable adaptability, especially in the Two-Wheeler and Three-Wheeler segments, where production adjustments have met rising consumer demand. The sector’s ability to scale production efficiently amidst fluctuations in certain segments reflects its robust infrastructure and strategic planning.

Commenting on sales data of July 2024, Vinod Aggarwal, President, SIAM said, “Though Three-Wheeler and Two-Wheeler segments are performing well, there has been some growth of Passenger Vehicles and Commercial Vehicles in July 2024, compared to July 2023. The above-average rainfall and the upcoming festive season will again propel growth in the short term. In addition, enabling budget announcements emphasised overall economic growth with fiscal support for infrastructure and the rural sector should augur well for the Auto sector in the medium term.”

July 2024 portrayed the resilience and adaptability of the Indian automotive manufacturing sector. Despite challenges, the overall growth in production and sales, particularly in the Two-Wheeler and Three-Wheeler segments shows the strength in derailment. With the festive season approaching and supportive economic policies in place, the industry is looking towards continued growth in the coming months.

Shan Qumer, Industry Leader – Environmental Mobility, Omron Automation Pvt Ltd

Euler Motors, a leading electric commercial vehicle manufacturer, offers the first look of its facility in Haryana, spanning 5 lakh sq. ft. The plant has a production capacity of 36,000 vehicles annually.

The commercial EV manufacturing and R&D facility of Euler Motors in the industrial hub of Palwal, Haryana is built with an investment of Rs 100 crore. The factory will serve as Euler Motors’ national manufacturing hub, catering to the rising demand for its 3W HiLoad EV from across the country. The company plans to expand its footprint from 26 to 40 cities by FY25.

The facility has an automated assembly line connected via a proprietary manufacturing execution system (MES), which drives production efficiencies by tracking the vehicle lifecycle from production to delivery. Additionally, the facility has the highest parameters for commercial vehicle testing, including dyno-testing, fully compliant shower testing, and a full-length testing track.

The plant houses a dedicated testing & validation team, advanced R&D labs, and collaborations with engineering experts, fostering a culture of continuous innovation.

“With such a strong supplier network in the vicinity, Palwal was naturally the ideal location for us. As we expand into new markets and aim to achieve 15% growth in FY25, this state-of-the-art facility will help us respond to the increased customer demand and adapt to changes in processes and products with agility and flexibility. It will also strengthen the company’s position as a trusted and leading player in the Indian commercial EV segment,” said Saurav Kumar, Founder & CEO, Euler Motors.

Gaurav Kumar, Head of Supply Chain & Manufacturing at Euler Motors, added, “Our new factory represents a significant leap in manufacturing commercial 3-wheeler EVs. We are setting new benchmarks for efficient and reliable production of vehicles by integrating cutting-edge technology and quality control that are at par with global standards. This facility will enhance our production capacity, and also reinforce our dedication to delivering powerful, locally manufactured vehicles that meet the evolving needs of our customers and the industry.”

The facility is an opportunity for value creation in the sector and will create job opportunities in the region. Currently employing over 500 people, including 20% women, the facility houses a dedicated learning and development centre, ‘Kamar-Taj’, to equip its workforce with the right skills, especially considering the skill gap that exists in EV manufacturing.

“I am incredibly proud to lead this commercial EV manufacturing facility. It has best-in-class automation and aligns with our commitment towards sustainable practices. The combination of our skilled workforce and the best of technology position us to deliver powerful electric vehicles across India, making a significant contribution to the country’s clean mobility future, said Anal Vijay Singh, Plant Head, Euler Motors.

Key highlights of the facility:

Industry-first Automation (among the cargo EV start-ups): Key automation initiatives include the EMS Hanger system for automated loading and unloading, the Trailing Arm Fitment Assist for better assembly ergonomics and takt time control, and a vacuum-based brake oil filling machine to minimise spillage and contamination. A portable CMM provides accurate body checks during and after production. Thorough in-house testing underscores Euler Motors’ commitment to vehicle performance and durability, setting industry benchmarks.

ESG at its Core: Demonstrating a deep commitment to environmental, social, and governance (ESG) standards, the facility incorporates advanced waste management systems, a sewage treatment plant, and a circular groundwater recharge system. These initiatives underscore Euler Motors’ holistic approach to operational efficiency and environmental sustainability.

Empowering Women in Manufacturing: Euler Motors prioritises a gender-neutral workplace. Key leadership positions, including safety and training officers, are reserved for women, promoting diversity and empowerment.

Economies of Scale and Quality Control: The facility marks a significant step towards achieving economies of scale through strategic investments in proprietary technology, modular vehicle design, and efficient production processes. This ensures high-quality EVs while meeting rising demand from both retail and institutional customers.

Compliance and Certifications: Euler’s Palwal facility, governed by the Factories Act of 1948, is the only cargo EV start-up with both ISO 9001 (QMS) and ISO 14001 (EMS) certifications, as well as the ISO 45001 (OHSAS) and IATF 16949 (QMS-Automotive) certifications, thereby boasting elevated compliance standards matching those of established OEMs in the e-mobility space.

EMS hanger system: Enables auto loading and unloading of vehicles on manufacturing stations.

Trailing arm fitment assist: Ensuring assembly ergonomics benefit and takt time control.

Vacuum base brake oil filling machine: Restrict spillage and contamination.

Portable CMM: For body accuracy checks during and post the manufacturing processes.

Dyno and shower testing facilities: Ensure comprehensive in-house testing of vehicles for performance and durability.

Chandan Mundhra, Founder & C.E.O, Savy Electric Vehicles

Amara Raja Energy & Mobility has also initiated the construction of a Customer Qualification Plant (CQP) at the Gigacorridor in Divitipalli, Mahbubnagar district, Telangana.

Amara Raja Energy & Mobility crossed a milestone in India’s battery manufacturing sector with the inauguration of Phase 1 of its battery pack plant and the foundation stone laying for a Customer Qualification Plant (CQP) at the Gigacorridor in Divitipalli, Mahbubnagar district, Telangana. The Gigacorridor spans over 260 acres and is poised to become a major hub for battery pack and cell manufacturing, with an ambitious target capacity of 5 GWh for battery packs and 16 GWh for cell production by 2031.

The newly launched Phase 1 battery pack plant has an initial capacity of 1.5 GWh and is tailored to produce lithium-ion (Li-ion) battery packs designed specifically for Indian conditions. These packs will serve the growing needs of electric vehicle (EV) manufacturers and stationary energy storage solutions. The forthcoming CQP, anticipated to be operational by the first quarter of the next financial year, will focus on producing various cell types for customer testing and validation, further solidifying Amara Raja’s role in advancing battery technology in India.

Amara Raja’s recent strategic moves include signing a Memorandum of Understanding (MoU) with Piaggio Vehicles Private Limited to develop and supply Lithium Iron Phosphate (LFP) cells and chargers for Piaggio’s EV 3-Wheelers, along with cells and battery packs for their upcoming 2-Wheeler models. A similar collaboration was also established with Ather Energy.

The Gigacorridor project represents a substantial investment of ₹9,500 crore, with plans to develop an advanced cell manufacturing Gigafactory and a cutting-edge research and innovation centre in Hyderabad, dubbed ePositive Energy Labs. This initiative is a critical component of Amara Raja’s broader strategy to lead India’s energy transition and drive sustainable growth in the region, while also reinforcing its position as a key player in the global battery manufacturing landscape.

Gururaj Bengeri, Director – Presales and Digital Transformation Consulting, Siemens Digital Industry Software

Francisco José Hurtado Mayén, Electric Vehicles Expert, remarks that the electric car market in India is marked by rapid expansion and a dynamic landscape. It is driven by a confluence of factors, including environmental awareness, supportive government policies, and advancements in electric vehicle technology.

The electric car market in India is one of the fastest-growing segments in the automotive industry. According to recent reports, the market size was valued at approximately USD 1.4 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of over 40% in the next five years. The number of electric cars sold in India is projected to increase significantly, driven by both demand and supply.

Key drivers of growth

Environmental concerns: Increasing awareness about the environmental impact of fossil fuels has led to a surge in demand for cleaner alternatives. Electric cars, with zero tailpipe emissions, are seen as a solution to reduce air pollution in urban areas.

Government initiatives: Various government policies and incentives, such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, offer subsidies and tax benefits to manufacturers and consumers, making electric cars more affordable.

Technological advancements: Continuous improvements in battery technology have enhanced the range, performance, and safety of electric cars. The development of fast-charging technology is also reducing the downtime required for recharging.

Cost reduction: Economies of scale and advancements in production processes are gradually reducing the costs of electric cars and their components, making them more competitive with conventional vehicles.  

Consumer trends

Electric cars are becoming more popular among consumers because they are cheaper, supported by government policies, and better for the environment. Electric vehicles appeal especially to younger consumers and city residents. Moreover, the growing variety of electric cars with enhanced performance and capabilities is encouraging more people to buy them.

Competitive landscape

The competitive landscape of the electric car market in India is evolving rapidly. Established automotive companies are expanding their electric vehicle portfolios, while new entrants are also making their mark. Competition fosters innovation and leads to better product offerings that benefit consumers.

Market segmentation

The Indian electric car market is diverse and segmented based on several criteria, including vehicle type, price range, usage, and geographic distribution. Each segment has unique characteristics and appeals to different consumer groups. Understanding these segments is crucial for identifying market trends and opportunities.

Vehicle type

The market is categorised into three main types of electric cars: compact cars, sedans, and SUVs. Each category caters to different consumer needs and preferences.

Compact cars: Compact electric cars are popular for their affordability and suitability for urban commuting. These vehicles are designed for short to medium distances, making them ideal for daily use. Key models in this segment include the Tata Tigor EV and Mahindra eKUV100. These cars balance cost, range, and performance, appealing to budget-conscious consumers and first-time EV buyers.

Sedans: Electric sedans provide comfort, performance, and range. They are preferred by consumers looking for a more premium experience without compromising efficiency. Models like the Hyundai Kona Electric and MG ZS EV fall into this category. These sedans offer advanced features, longer driving ranges, and better performance metrics than compact cars, making them suitable for longer commutes and highway driving.

SUVs: The SUV segment in the electric car market is gaining significant traction due to the increasing consumer preference for spacious and versatile vehicles. Electric SUVs like the Tata Nexon EV and the upcoming Mahindra XUV400 are known for their build, advanced features, and superior driving range. This segment appeals to consumers prioritising space, safety, and higher ground clearance, making these vehicles suitable for diverse driving conditions, including urban, rural, and off-road environments.

Price range

Electric cars in India are available across a wide range of price points, catering to different economic segments of the population. This segmentation allows manufacturers to target diverse consumer groups based on their purchasing power and preferences.

Budget segment: Electric cars priced below INR 10 lakh fall into this category. These vehicles are typically compact cars designed for urban use. Their affordability makes them accessible to a larger segment of the population. Examples include entry-level versions of the Tata Tigor EV and Mahindra eKUV100.

Mid-range segment: Priced between INR 10 lakh and INR 20 lakh, this segment includes higher-end compact cars, entry-level sedans, and SUVs. Vehicles in this range offer better performance, longer driving ranges, and more features per the budget segment. The Tata Nexon EV and MG ZS EV are notable models in this category.

Premium segment: Electric cars priced above INR 20 lakh are considered premium models. These vehicles include high-end sedans and SUVs offering superior performance, luxury features and extended driving ranges. The Hyundai Kona Electric and future premium models from brands like Audi and Mercedes Benz are examples of this segment. These cars cater to affluent consumers looking for luxury and advanced technology.

Usages

Electric cars in India are used for personal use, commercial applications, and government or institutional use. Most electric cars in India are purchased for personal use. Consumers in this segment prioritise factors such as cost-effectiveness, environmental impact, and the convenience of charging. The growing awareness of environmental benefits and the availability of subsidies have significantly contributed to electric cars for personal use.

There is an increasing interest in electric cars for commercial purposes, including fleet operations for ride-hailing services, corporate fleets, and delivery services. Electric cars’ lower operational costs compared to conventional vehicles make them an attractive option for businesses looking to reduce expenses and enhance sustainability. Companies like Ola and Uber are gradually incorporating electric cars into their fleets.

Government agencies and institutions are also adopting electric cars as part of their efforts to promote sustainability and reduce carbon footprints. Various state and central government bodies are incorporating electric vehicles into their official fleets, setting an example for the public and supporting market growth.Geographic Distribution

The adoption of electric cars in India varies across different geographic regions and is influenced by factors such as urbanisation, infrastructure availability, and regional policies. Major metropolitan cities like Delhi, Mumbai, Bangalore, and Chennai are leading in electric cars. The availability of better charging infrastructure, higher environmental awareness, and supportive local policies contribute to the higher penetration of electric cars in these areas. Urban consumers are more inclined to switch to electric cars due to the frequent use of personal vehicles for commuting and the increasing congestion and pollution levels in cities.

While adopting electric cars is slower in semi-urban and rural areas, there is potential for growth as charging infrastructure expands and awareness increases. State government initiatives aimed at rural electrification and the development of charging networks are expected to boost the adoption rates in these regions. The affordability and suitability of compact electric cars for short-distance travel make them appealing to consumers in smaller towns and rural areas.

Future Prospects

The future of the electric car market in India is promising, driven by several factors expected to contribute to its growth and development. Technological innovation will play a leading role in this growth.

Continuous improvements in battery technology, including improvements in energy density, charging time, and cost reduction, are expected to enhance the performance and affordability of electric cars. Solid-state batteries promise higher energy densities and faster charging times, and once they become commercially viable, they are likely to revolutionise the market.

Advancements in vehicle design and materials will contribute to more efficient and lightweight electric cars. Innovations such as aerodynamic designs, lightweight composite materials, and energy-efficient systems will improve overall vehicle performance and range.

Autonomous driving technologies and advanced connectivity features will enhance the appeal of electric cars. Autonomous driving can improve safety and convenience, while connectivity features offer real-time updates, predictive maintenance, and enhanced user experiences.

Government support and policy framework

Ongoing and consistent government support will be crucial for the sustained growth of the electric car market. The continuation and expansion of financial incentives and subsidies for electric car buyers and manufacturers will help bridge the cost gap with conventional vehicles. Policies that support domestic manufacturing and research and development will also boost the industry.

Implementing stringent emission regulations and fuel economy standards will encourage the adoption of electric vehicles. Policies such as zero-emission vehicle (ZEV) mandates and carbon credits can further drive market growth.

Government initiatives to expand and enhance the charging infrastructure will address range anxiety and make electric cars more convenient for consumers. Support for public and private investment in charging networks will be essential.

Market expansion and new business models

The electric car market is expected to expand, with new business models emerging to support its growth. Electric cars in commercial fleets, including ride-hailing services, delivery vehicles, and corporate fleets, will drive significant market growth. Fleet operators are likely to benefit from lower operational costs and government incentives.

Innovative business models, such as battery leasing and swapping, can reduce the upfront cost of electric cars and address concerns about battery lifespan and degradation. Companies offering these services will play a crucial role in market expansion.

Subscription-based models, in which consumers can lease electric cars monthly with inclusive services such as maintenance and insurance, will provide users with flexible and cost-effective options.

Increased consumer awareness and acceptance

Consumers are expected to switch to electric mobility with the increasing awareness and acceptance of electric cars. Continued efforts to educate consumers about the benefits of electric cars, available incentives, and charging infrastructure will drive this adoption. Real-world testimonials and success stories can help build confidence in electric vehicles.

Providing consumers with opportunities to experience electric cars through test drives and demonstrations will also dispel misconceptions and highlight the advantages of electric mobility.

As more automakers enter the electric car market and offer a wider range of models, consumers will have more choices that meet their preferences and needs. Increased competition will also drive innovation and lower prices.

Environmental and economic impact

The environmental and economic benefits of electric cars will further strengthen their adoption. They will reduce greenhouse gas emissions and air pollution, contributing to improved public health and sustainability. Electric cars can reduce India’s dependence on imported fossil fuels, which will positively impact energy security. Renewable energy sources for EV charging can further reduce the carbon footprint and promote sustainable energy use.

The growth of the electric vehicle industry will create new opportunities for economic development and job creation. The EV ecosystem will generate employment across various sectors, from manufacturing and R&D to charging infrastructure and maintenance services.

Global trends and collaboration

The global shift towards electric mobility will impact the Indian market. Trends such as the declining cost of batteries, technological advancements, and increased investment in EVs by global automakers will benefit India. Collaborating with international companies and governments can facilitate technology transfer, investment, and knowledge sharing. Partnerships in areas such as battery manufacturing, charging infrastructure, and R&D will accelerate the growth of the Indian electric car market.

The electric car market in India stands at a crucial juncture with an outlook of substantial growth and transformation. This report has explored the multifaceted aspects of this burgeoning market, offering a comprehensive analysis of its current state, key players, government policies, infrastructure developments, challenges, and prospects.

The transition to electric mobility is more than just a technological shift. It is to create a fundamental change in how transportation is perceived and utilised in India. This transition’s benefits are manifold: reduced greenhouse gas emissions, improved air quality, and economic growth. As India aims to meet its sustainability goals and reduce its carbon footprint, electric cars are a pivotal step in this direction.