India aims to be 3rd largest automotive industry globally by 2030

India has a target to be the third-largest automotive industry worldwide by 2030. Currently, it is the fifth-largest market, and it aims to achieve 100% electrification by 2030. India is investing in this electric mobility shift to reduce the burden on oil imports, increase pollution, and international commitments to manage climate change. The electric vehicle industry in India is rapidly growing with the development of new production hubs and enhanced infrastructure for charging stations. The Production Linked Incentive (PLI) scheme would promote domestic manufacture of electric vehicles (EV), hydrogen fuel vehicles, and a boost for local ACC battery storage products, which is the growth for the Indian EV industry. In 2021, over 300,000 EV units were sold in the country. According to India Energy Storage Alliance (IESA), the EV industry of India would expand at a compound annual growth rate (CAGR) of 36%. By 2026, the EV battery industry would grow at a CAGR of 30%. India would immensely benefit from this shift to EVs, including skilled workforce availability from the adjacent sectors and an abundance of renewable energy resources. In the budget 2022, policies were laid out to facilitate battery swapping and interoperability standards that would make for uniform battery technology and further add the required stimulus to the industry's growth. Nirmala Sitharaman, Finance Minister, told the media that the private sector would receive support to establish the EV infrastructure. She said that a huge ecosystem is being built under Batteries as a Service with the potential of creating numerous skilled and unskilled jobs in the sector. The overall growth in Capital Expenditure (capex) and push on Atma Nirbhar Bharat would be helpful in the long run for domestic manufacture of EV Infrastructure and EV. The rising vehicle population would move the ecosystem of Original Equipment Manufacturers (OEMs) and component companies while promoting employment in the EV sector. The Ministry of Skill Development and Entrepreneurship (MSDE) estimated the EV industry would form one crore direct jobs by 2030 and predicted that this would increase to nearly five crore indirect jobs in the sector. EV firms would focus more on technical and specialised skills to serve the rapid increase in demand. Meanwhile, the expertise in areas such as artificial intelligence, analytics, and app development would cover the office jobs. Whereas, the core production and factories would require a blue-collar workforce. The National Skill Qualification Framework (NSQF), the skilling initiatives depicted in the budget, would be aligned with dynamic industry requirements. Image SourceAlso read: EV industry to get big push from battery swapping policy