Transportation is one of the largest contributors to global greenhouse gas emissions, accounting for approximately 23% of global energy-related carbon dioxide emissions. The majority of these emissions come from the use of fossil fuels in traditional vehicles. Electric vehicles (EVs) offer a promising solution to reduce these emissions and mitigate the impact of climate change. According to the International Energy Agency (IEA), the adoption of EVs could reduce global carbon dioxide emissions by up to 1.5 gigatons per year by 2030.
According by KPMG, global EV sales recorded a 39.1% YoY growth in 2022, driven by various initiatives taken by governments to support the adoption of EVs. But how Indian EV market is performing? And if it is really growing, how this growth can help in reducing the effect of climate change? Let's explore!
Electric Vehicle Industry in India
India has witnessed a significant increase in EV sales, with 2022 being a landmark year, as the country crossed the one million mark for EV sales. Two-wheelers and three-wheelers have been the primary drivers of EV sales, with high predictability of routes, economic viability, and the ability to use private chargers being some of the factors propelling adoption within these segments. Additionally, the B2B segment has been driving sales of electric four-wheelers and buses. Favorable government policies, robust charging infrastructure, and a focus on decreasing the cost of ownership could lead to further penetration into segments, including buses and LCVs.
How Many EV Startups are There in India?
The demand for EVs in the country has led to a constant growth in the EV startup landscape. Over the years, the industry has witnessed remarkable progress, with a funding worth 570 million being brought in during 2021. In 2022, as many as 43 startups in the EV mobility field raised a total of 673 million in funding.
How EV Startups can help Mitigate Climate Change?
EV startups can play a significant role in accelerating the adoption of sustainable transportation solutions. By developing innovative EV technologies and business models, startups can make EVs more accessible, affordable, and convenient for consumers. For instance, electric vehicles produced by Tesla have significantly disrupted the automotive industry with their advanced battery technology, longer driving ranges, and autonomous driving features. Moreover, the company has built its charging network, Tesla Supercharger, which now has over 25,000 charging points worldwide.
Another example of an EV startup is Rivian, an American electric vehicle manufacturer that specializes in producing electric adventure vehicles. The company has raised over $10 billion in funding and has received orders for more than 100,000 vehicles from major companies such as Amazon and Ford. The company aims to launch its electric pickup truck and SUV models in the coming months.
Furthermore, by reducing the reliance on fossil fuels, EV startups can help to reduce emissions, improve air quality, and mitigate the impact of climate change. According to a report by BloombergNEF, the adoption of EVs could reduce global carbon dioxide emissions by up to 2.5 gigatons by 2030. Furthermore, EVs produce zero tailpipe emissions, which significantly reduces the amount of air pollution in urban areas. A study by the European Environment Agency found that air pollution causes approximately 400,000 premature deaths in Europe each year.
In addition, EV startups can help to build the necessary charging infrastructure, which is a critical enabler of EV adoption. According to a report by the IEA, the availability and accessibility of charging infrastructure are among the key factors that determine the adoption of EVs. EV startups such as ChargePoint, EVBox, and Electrify America are focused on building charging infrastructure for EVs across the globe. ChargePoint, for instance, has over 115,000 charging points in over 55 countries worldwide.
In conclusion, EV startups have the potential to play a significant role in accelerating the transition to sustainable transportation and reducing the carbon footprint of the transport sector. By developing innovative EV technologies, building charging infrastructure, and reducing the reliance on fossil fuels, EV startups can help mitigate the impact of climate change and improve air quality.