According to Rajat Dhawan, a senior partner at McKinsey India, the country’s electric mobility and battery demand is expected to grow exponentially over the next 15 years. In an interview with Business Today, Dhawan predicted that the demand for electric vehicles and batteries will increase by 20 times by 2037. This rapid growth is driven by the Indian government’s efforts to promote electric mobility and reduce the country’s dependence on fossil fuels.
The government has set ambitious targets to electrify 30% of new vehicle sales by 2030, which is expected to drive the growth of the electric vehicle (EV) market. As a result, the demand for batteries, a critical component of EVs, will also increase significantly. Dhawan estimated that the battery market in India will grow from $1 billion in 2020 to $20 billion by 2037, driven by the rising demand for EVs.
McKinsey India’s research suggests that the growth of the EV market will be driven by the passenger vehicle segment, which is expected to account for 70% of total EV sales by 2030. The commercial vehicle segment, including buses and trucks, will also contribute significantly to the growth of the EV market. The two-wheeler and three-wheeler segments, which are popular modes of transportation in India, will also see significant growth in EV adoption.
The growth of the EV market will have a positive impact on the environment, as it will help reduce greenhouse gas emissions and air pollution in urban areas. The government’s efforts to promote EVs will also create new job opportunities in the manufacturing and servicing of EVs and batteries.
However, there are challenges that need to be addressed to achieve the government’s targets. One of the major challenges is the lack of charging infrastructure, which is a critical component of EV adoption. The government and private companies need to invest in building a network of charging stations across the country to support the growth of the EV market.
Overall, Rajat Dhawan’s prediction of a 20x growth in India’s electric mobility and battery demand over the next 15 years highlights the significant opportunities in the EV market. The government’s efforts to promote EVs, combined with the growing demand for sustainable and environmentally friendly transportation options, are expected to drive the growth of the EV market and create new opportunities for businesses and job seekers in India. As the country continues to transition towards electric mobility, it is essential to address the challenges and invest in the necessary infrastructure to support the growth of the EV market.