Published on: June 23, 2025
RHODIUM GROUP REPORT
RHODIUM GROUP REPORT
CONTEXT: WHY EV PUSH?
- Road transport = 12% of India’s CO₂ emissions (IEA).
- Urban air pollution & energy dependence compel transition.
- EV adoption aligns with net-zero, energy security & Make in India goals.
- India aims to become a global EV manufacturing hub.
CONCEPT: EVS, TYPES, TECH, AND HYBRIDS
- EV Definition: Vehicle powered fully or partly by electricity, rechargeable externally.
- Types:
- BEV (Battery Electric Vehicle): Only electric motor (no fuel engine).
- PHEV (Plug-in Hybrid EV): Combines battery + internal combustion engine.
- HEV (Hybrid EV): Can’t be charged externally, runs partly on fuel and electric power.
- Technology:
- Electric motor, inverter, lithium-ion batteries, regenerative braking system.
- EV vs Hybrid:
- EVs: Zero tailpipe emissions; depend solely on electricity.
- Hybrids: More fuel efficient but emit CO₂; transitional tech.
CURRENT
- EV manufacturing capacity to reach 5 million by 2030 (from 0.2 million today).
- Will rank 4th globally after China (29M), EU (9M), US (6M).
- EV demand in India by 2030 projected at 0.4–1.4 million units.
- EV penetration to rise from 2% (2024) to 7–23% by 2030.
- India’s capacity may exceed demand by 1.1–2.1 million units; exports key to fill the gap.
Government Initiatives
- PM E-Drive, e-AMRIT, and state-level EV subsidies.
- FAME India Scheme: Faster Adoption and Manufacturing of EVs.
- PLI Scheme for Advanced Chemistry Cell (ACC) battery storage.
Benefits of EVs
- Lower emissions, reduced fossil fuel import bill, energy security.
- Cleaner cities, green jobs, long-term cost savings for users.
Challenges
- High upfront cost; limited charging infra; battery recycling concerns.
- Cost competitiveness with China remains a barrier to exports.
- Battery tech challenges: performance in Indian climate, rare earth dependency.
Battery Status
- India emerging as major battery module producer outside China, US, EU.
- Capacity under rapid construction; focus on cells and modules.
