India has always been one of the major role players in the global automotive industry. The country is currently the fourth biggest car market in the world. Experts, however, predict that India could enter the top three, especially as the country has robust plans to integrate electric cars in an effort to protect the environment.
Government Driving Change
There has been a major shift in the automotive industry in recent years, as new companies like Tesla and older, established manufacturers like Volkswagen are all making the switch to electric vehicles. The government in India has been pushing hard in the past couple of years to increase the production of electric vehicles in the country to reduce oil import bills as well as comply with their environmental duties under the Paris Agreement.
Impact Of The Transition On The Automotive Industry
The main goal behind the transition in India is the country’s pledge to reach a net-zero carbon emission rate by 2070. Electric vehicles are one of the biggest driving forces behind recent environmental preservation agreements, and the Paris Agreement, of which India is a member, is no different.
The worldwide shift has been so drastic that many of the factors that people used to consider when buying a car, such as engine condition, gas consumption rates, and mileage are now being swapped out for the all-important requirement that the car be either electric or hybrid. This signifies the impact that companies like Tesla are having on the automotive industry as the internal combustion engine seems to be on its last legs.
Entering An Electric Era
There is a growing consensus that the future of the worldwide automotive industry is electric. Countries like India and Australia are now playing key roles in helping to achieve that future. Some of the confirmed plans that are to be set into motion in India are the Faster Adoption and Manufacturing of Electric Vehicles Scheme (FAME), and the Production-Linked Incentive Scheme for Advanced Chemistry Cells (PLI).
Job Creation Benefits
Besides the obvious environmental impact that this switch will spur, the Indian government also believes that an increased focus on the production of electric vehicles will contribute to job creation in the country. There have however been concerns over whether the Indian workforce is ready for the switch to the electric era, and some experts in the industry predict that India might have to recruit talent from abroad to ensure the transition goes smoothly. Even if this is required, the move to electric vehicles will still be a hugely positive one.