New Delhi, July 30, 2024
As the government doubles down on clean and sustainable transportation, the clean mobility ecosystem in the country is expected to become a $250 billion opportunity by FY30, growing at a compound annual growth rate (CAGR) of 38 per cent, a new report said on Tuesday.
By FY30, the overall mobility market in India is expected to reach $1.2 trillion, with clean and electric mobility accounting for about 20 per cent of the overall market, according to the report by Praxis Global Alliance.
“India’s journey towards electrifying its transportation sector is not just a leap towards a sustainable future but also a significant economic opportunity,” said Aryaman Tandon, Managing Partner, mobility, energy and transportation, Praxis Global Alliance.
India has an EV-to-charging station ratio of 9:1. To reach the globally acceptable standard ratio of 4:1, the government has taken multiple initiatives, including significant allocations in FAME II (over $120 million) and the reduction of GST rates on EV chargers.
“Despite challenges faced by the global EV market due to geopolitical shifts and fluctuating manufacturing costs, India remains a beacon of resilience,” the report mentioned.
The country’s strategic positioning, coupled with favourable domestic conditions and a robust policy framework, creates an environment conducive to rapid clean mobility adoption.
According to the findings, India’s emphasis on developing an integrated clean mobility ecosystem not only boosts EV adoption but also fosters innovation in supporting industries, such as charging infrastructure, battery technology, and sustainable supply chains.
“There is significant foreign direct investment (FDI) and private equity investment in this sector, which is a key growth driver,” it added.
By FY30, clean mobility product opportunities are projected to hit $94 billion, with overall penetration rising significantly to 23 per cent.
Mobility services opportunity in India is worth $450 billion in FY24, with more than 80 per cent of the opportunity lying in transportation and logistics services.
According to the report, the software solutions opportunity size is estimated at $0.37 billion in FY24, expected to grow at a CAGR of 27 per cent, reaching $1.58 billion by FY30.(Agency)
