Ola Electric and many other firms which are going green in India stands to benefit in a big way from the Government of India PLI scheme to promote Green Energy.
India has sharpened its focus on ensuring a domestic supply chain for clean transport and renewable energy storage. Setting up more AC charging points for EVs has also been a key focus for the Government.
Going forward several firms and governments across the globe are trying to reach their decarbonisation and net-zero goals through various green initiatives.
According to a recent report Bhavish Aggarwal-led mobility giant Ola Electric is set to receive incentives under India’s $2.4 Bn programme to boost local battery cell production after winning a tender.
Though India is undergoing a massive electric mobility revolution, the adoption rate of EVs in the country is still moving sluggishly primarily because of a large pricing gap between EVs and conventional ICE vehicles, according to a recent report.
The winning bidders also include Indian jewellery maker Rajesh Exports and Hyundai Global Motors Company, the sources told Reuters on condition of anonymity. As winners, Ola Electric and Hyundai would receive incentives for 20-gigawatt hours (GWh) capacity.
Ola Electric Set to lead the electric scooter market
In a report tabled by the Govt of India in the previous year it is mentioned “By 2025, forecasts expect up to 4 million of such vehicles (EV) could be sold each year, growing to almost 10 million by 2030. Any charging solution to serve this sector must be highly scalable, easily accessible by the public; it should support interoperability, and be affordable.
The sectoral growth can be driven by Venture capitalists with them, playing a major role in initiating steps towards the trsnsformation . Last month Ankit Kedia’s early-stage VC fund Capital A announced the launch of ‘Evolve’, a $10 Mn (INR 75 crore) cleantech fund aimed at furthering the EV ecosystem.
And this impacts the purchase decision of buyers, largely in the lower-end car segment. At a time like this, the government incentivising companies could be a key in achieving the goals for a sustainable future.
A last years’ report said that India’s electric vehicle market size is expected to reach $152.21 Bn by 2030 and expand at a compound annual growth rate (CAGR) of 94.4% from 2021 to 2030.
