There are better opportunities for export of EV components.
The Indian auto industry, which was severely affected by the Corona epidemic, will grow rapidly in the next financial year 2021-22. Two-wheeler sales will also increase with electric vehicles. This possibility has been expressed by the Nomura Research Institute Consulting and Solutions India. However, according to Nomura Research, the level of sales seen in the segment of personal vehicles in 2018-19 can be expected only in the financial year 2020-23. Apart from this, there is a better opportunity for exporters of electric vehicle (EV) components.
In 2018-19, there was a 2.7 percent increase in sales of passenger vehicle. According to the Society of Indian Automobile Manufacturers (SIAM) data, 33,77,436 passenger vehicles were sold in 2018-19 as compared to 32,88,581 units sold in the previous year 2017-18.
Sales of personal vehicles will increase in 2022-23
According to Aseem Sharma, Partner and Group Head (Business Performance Improvement Consulting-Auto), Nomura Research, the negative impact on the auto industry has been caused by the Corona epidemic. With this, she will recover in the next financial year 2021-22 and will see strong growth in it. In the case of personal vehicles, he believes that the growth like 2018-19 can only be seen in the financial year 2022-23, while in the case of two-wheeler, growth will be in the year 2023-24. According to Sharma, this is not only due to the rise in prices, but also the effect of new regulations. There was a jump of 4.86 percent in the sales of two-wheelers in the financial year 2018-19. In 2018-19, 2,11,81,390 two-wheelers were sold, while in 2017-18, 2,02,00,117 vehicles were sold.
Better opportunities for export of EV components
Talking about electric vehicles, its sales will be positive in the next financial year 2021-22, especially in the segment of two-wheeler electric vehicles. According to Sharma, technical upgrades will be seen in the country, such as LTO (lithium titanium oxide) batteries. LTO batteries can be charged rapidly at higher temperatures and can be charged more than 10,000 times. Apart from this, if we talk about components like EV’s motors and controllers, then the participation of domestic companies will increase and some new companies will also enter the market. According to Sharma, a very good export opportunity is coming up for manufacturers of EV components and batteries as alternative sources are being sought for better supply chain across the world.