EV industry may create 50 mn indirect jobs by 2030

 Electric vehicle (EV) sales in India are expected to cross 9 million units by 2027 and the industry is seen creating more than 10 million direct and 50 million indirect jobs by 2030, says an IVCA-EY-Induslaw report.

• The EV industry attracted $6 billion in investment in 2021. 
• This could grow to $20 billion by 2030. 
• In a sign that the EV market is drawing the attention of private equity/venture capital investors in India, such investments are estimated to grow from $181 million to $1,718 million during the same period – an annual growth rate of 849%. 
• “This (PE/VC investment) has reached about $666 million in 2022 so far,” said Rajat Tandon, president of the Indian Private Equity and Venture Capital Association (IVCA).
• Srihari Mulgund, new-age mobility partner at EY-Parthenon, said electrification of Indian mobility presented a ‘once-in-a-lifetime opportunity' to reimagine the future of the Indian automotive sector. “Capital becomes a strategic lever as we embark on this journey to electrify mobility.”
• The Indian Electric Vehicle ecosystem is currently at an initial stage of development, but it has been gaining traction. In 2021, EV registrations stood at about 330,000 units, a 168 per cent jump over 2020. 
• The sales were led by two- and three-wheelers – at 48 per cent and 47 per cent growth, respectively – followed by passenger vehicles at 4 per cent.
• The e-rickshaw/e-kart category (top speed at less than 25km per hour) accounted for a large part of the three-wheeler segment, with a share of 45 per cent. E-buses, which are included in others, had a share of 0.36 per cent.
• A large part of growth in EV sales is expected to come from the travel segment, especially electric three-wheelers and electric two-wheelers due to a fixed-duty cycle and companies (e-commerce, groceries and shops) committing to going completely electric in their last-mile deliveries.
• Lack of charging infrastructure, though, is one of the biggest challenges for the EV industry. At present, there are only 1,742 charging stations across the country. 
• This number is expected to increase to 100,000 units by 2027 to cover the demand from the 1.4 million EVs expected to be on the roads by then.
• Currently, India accounts of for about 2.5 billion tonnes, or 7 per cent, of global carbon emissions. 
• The ICE (internal combustion engine) vehicular pollution contributes 40 per cent to India’s total pollution.
•  The IVCA-EY-Induslaw report said EVs would help reduce exposure to VOCs (which are carcinogenic) and help improve life expectancy.
• “Although emerging strongly, it is not without its challenges – long charging time and poor charging infrastructure are the two main pain points for both users and non-users,” said Mukesh Kumar, engagement manager at Redseer.