Increase in Electric Vehicles in India Leads to More Imports from Germany According to Study
India is poised for growth in the global auto components trade, with the potential to expand its share to 4-5% by 2026. This expansion is driven by exports growth and import substitution initiatives as part of the 'Aatmanirbhar' initiative. However, the specifics of this initiative as a national policy or program in India remain unclear.
The move to e-mobility is a priority for the Government of India (GOI), and this shift is being supported by a surge in German original equipment manufacturers (OEMs) entering the Indian electric vehicle (EV) market. Companies like Bosch, BMW, and Continental have recently made their foray into India's growing EV industry.
Germany, India's largest trading partner in Europe, offers a subsidy of $11,420 (9,480 euros) for Electric Vehicles, with $4,192 (3,480 euros) contributed by OEMs. This incentive could potentially boost the growth of the Indian EV industry.
The total import from Germany to India for the period April 2020-January 2021 has increased by 3.56%. This trend suggests a growing economic relationship between the two countries.
India and Germany aim to collaborate on next-generation technologies, including the Internet of Things (IoT). However, the report does not mention any specific technologies beyond IoT that they are planning to work on.
The integration of EV manufacturing, supply chain, and infrastructure between India and Germany presents challenges due to the nascent state of e-mobility uptake in India. The report does not provide specific details on India's current share in global auto components trade.
Despite these challenges, the continued development of India's e-mobility solutions may be supported by global transitions in e-mobility. Disruptive transitions in Germany and at a global level may also support the continued development of India's e-mobility solutions.
The entry of German OEMs into the Indian electric vehicle market is a potential opportunity for India's e-mobility industry. It could lead to knowledge transfer, technological advancements, and improved infrastructure for EVs in India.
In conclusion, the growing economic ties between India and Germany, coupled with the priority given to e-mobility by both governments, present an exciting opportunity for collaboration and growth in the EV sector. The challenges posed by the nascent state of e-mobility uptake in India should not overshadow the potential benefits that this collaboration could bring.
