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.