Economies of scale are the force behind the progressive reduction in the cost of components needed to assemble an electrified vehicle. For example, there is an anticipation that the price of the batteries for these Evs would drop by over 30 per cent in the next five years and thereby make these cars less expensive.
Additionally, other things in this line that will witness a plunge in prices include the motors, DC-DC converters, EVSE (electric vehicle supply equipment), controllers, thermal management equipment, PDMs (power distribution modules), among other components.
In this decade, public transport vehicles have a high probability of flourishing. The passenger car category components’ demand will rise in the Indian market. This statement is verifiable by the surging fleet of automobiles of electric design. This move is also possible with persistent efforts of the government to ensure the automotive industry shifts to emission-free transportation.
The Original Equipment Manufacturer (OEM) branch is the current most substantial shareholder in the Indian EV component market for two-wheelers. This trend is possibly due to large orders of these automobiles rather than replacement parts.
The Indian electric vehicle parts market sprouted from a large number of rickshaws in the prime cities. This concept created the need for electric rickshaws to compete with the ICE rickshaws. An e-rickshaw is a piece of cake to operate and is also feasible in terms of cost compared to pedal-based and auto-rickshaws.
Delhi is becoming a pioneer market for the Indian EV components. This trend is one of the city’s plan to minimize the currently high pollution by substituting the ICE automobiles with electric passenger buses and trucks in the city.
Various Indian electric vehicle component pioneers depend on the demographic and urbanization scenarios. For example, Uttar Pradesh is the dominant seller of EV components because of the numerous two- and three-wheelers in the market. Elsewhere, Delhi boasts of running the massive EV commercial fleet. On the other hand, Maharashtra gloats over its vast number of EV passenger cars in its market.
Recently, partnerships are springing up in this market to take chances and venture this EV parts market for profits. Also, the manufacturers are marketing themselves, seeing that there is a likelihood of transitioning to electric vehicles.
The collaboration between Panasonic Corporation and Toyota Motor Corporation is an example of the above partnerships. This partnership intends to deliver Li-ion batteries for Evs produced by Toyota. Panasonic will scale up its position as an EV component maker.
Finally, Suzuki Motor Corp. Reveals that they will be developing an EV battery producing plant in India’s Gujarat to fulfil their task in a joint venture with DENSO Corp. and Toshiba Corp. This project will create batteries for Suzuki’s EVs, hybrid cars and other manufacturers.