The Rise of EV Startups in India
In recent years, the Indian electric vehicle market has seen incredible growth. EVs have been a part of sustainable transportation, technological innovation, and better environmental solutions.
Due to increasing awareness among consumers, leading automation industries in India are racing to make the country a 100% e-vehicle nation within the next decade. In 2022, India sold almost 1 million worth of electric vehicles, including 2-wheelers, 3-wheelers, commercial vehicles, passenger vehicles, and even autorickshaws.
Most of us are aware that EVs and technology complement each other. It’s the consistent innovation of design, function, assembly, and production that influences the demand for EVs in the market.
Technological Advancements That Are Altering the EV Startup Industry
Use Of Artificial Intelligence
For EV startups, AI plays a big role. Most EV companies are trying to implement AI technology and pattern recognition. A seamless integration of AI can improve the sale of EVs globally.
Smart charging is a great economic solution for energy consumption in EV development. Users can opt for different charging techniques with renewable energy like solar panels. Smart charging helps EVs to be more energy efficient.
E-Waste And Fuel Alternatives
This is one of the biggest portions of technical support in the EV industry. With the rapid rise in the use of EVs things like production waste, charging stations, batteries, and others, tech-based waste management is going to play a significant role. Also, fuel alternatives that curb carbon emissions are also an ongoing process.
As more and more people tend towards EVs, smart charging stations and better road infrastructure are important. Currently, the pace of implementing smart charging stations in India is going rather slow. However, things are expected to pick up the pace soon.
Detachable Lithium-ion Batteries
Lithium-ion batteries are the most important component that provides power to EVs and uses lithium-ion. This particular technology would rise in demand as EVs takes a center stage. The advancement in batteries not only ensures better performance but also enhances the charging time that’s required.
Rise Of EV Startups in India
As per data, in 2022, almost 43 EV mobility startups in India raised funds worth around $673 million. Even this year, EV startups got substantial investments with Ola Electric, Ather Energy, and Blusmart getting top-dollar funding.
There is a significant shift in the country thanks to the increasing availability of EVs. The EV industry with its determination to bring green mobility to every corner of the country is getting a lot of backing from the government as well. The startups are working on providing innovative and cost-effective solutions to address the challenges the EV industry is facing in the market. Some of these challenges include consumer awareness, lack of infrastructure, and high upfront costs.
The Indian automobile industry is currently the fifth-largest in the world with a target of earning the third position soon. With the Indian electric vehicle industry that’s growing at an exponential rate, it is a possibility in the near future.
The incredible development of these EV startups has attracted significant investments from venture capital firms, angel investors, and even government grants. In fact, in the 2023 union budget, EV startups are one of the biggest winners with Rs. 8,819.8 billion allocated along with SMEs and battery makers. The amount comes to around 2.0% of total spending. The Indian government is also assisting numerous EV startups by integrating the infrastructure of one e-charging kiosk at 69,000 gas stations around the country by 2030.
This is one of the few steps by the government to promote EVs. Some of the other steps include:
- Lowering the GST rate to 5%
- Allocating different fundings
- Reducing battery costs of 2 and 3 wheelers
What was the budget for other Indian startups in the annual budget of 2023?
Some Lurking Issues Faced by EVs In India
The market maturity in India varies from state to state. Due to its huge demography, differences in income levels, regulatory landscape, and variation in urbanization, some states are adapting to EVs faster than others.
For instance, Uttar Pradesh has the lowest rates of urbanization, whereas, Maharashtra has the highest. This is why Maharashtra has the highest levels of penetration of electric three-wheelers and passenger automobiles.
The Cost of Buying and Maintenance
Look, EVs don’t come very cheap. Although there are incentives given by the central and state governments, policies are often limited to a certain number of vehicles. Then comes the Li-ion batteries that last around 7 years.
After the decay, the owner needs to buy a new battery which costs nearly 3/4th of the cost of the whole vehicle.
Scarcity Of Charging Stations
This is a pressing issue with most EV owners. Only a handful of cities have some charging stations which is a problem if you want to be completely dependent on your electric vehicle. Again, there is no universal standardization of charging and each company has its own version.
The lack of standardization of EVs can be a damaging factor to the future of the EV market in India.
However, there are EV startups that are fueling India’s economy with their unique solutions.
4 EV Startups to Look Out for in 2023
Ather Energy is a Bangaluru-based startup also known for building India’s first smart electric scooter. Currently, the company is regarded as one of the best EV startups in India. They also have one of the fastest EV charging infrastructures—Ather Grid, designed and manufactured in India.
Founded by Bhavish Aggarwal, Ola electric is a Bangaluru-based EV startup currently valued at over $5 billion. The company is backed by some major giants in the industry—Tiger Global Management, SoftBank, Hyundai Motors, Falcon Edge Capital, and others.
Comparatively a new player in the market, Blu Smart quickly stole the limelight as an all-electric ride-hailing platform. The startup provides intelligent, on-demand, and cost-effective mobility solutions. Mayfield Fund, Venture Catalysts, and Inflection Point Ventures are some players backing the EV startup.
This EV startup was founded in 2017 with the aim to address rising air pollution and traffic congestion issues in India. Yulu Miracle is a sustainable electric scooter with lithium battery power. The company claims to have initiated India’s largest battery-as-a-service network.
What do you think of India’s rising EV startups? Do you drive an electric vehicle or have plans to buy one? Let us know in the comments.