Bengaluru-based corporate and commercial law firm, GameChanger Law Advisors (GLA), and leading seed-stage venture capital firm, Speciale Invest, have joined forces to unveil a pioneering report, “Charging Ahead.” This comprehensive document offers a cross-jurisdictional, regulatory, and industry analysis of electric vehicle (EV) battery packs, providing a substantial contextual framework for India’s EV landscape.
Addressing India’s Growing EV Market
The report spotlights the regulatory environment surrounding EV battery packs in India and emphasizes the substantial potential the country holds in EV battery pack manufacturing. Currently, India heavily relies on importing 60-65% of the components required for battery packs. As per the report’s findings, the Indian EV battery market is projected to surge from USD 16.77 billion in 2023 to USD 27.70 billion by 2028, showcasing an impressive compound annual growth rate (CAGR) of 10.56% between 2023 and 2028. This underlines India’s burgeoning EV battery industry, poised for significant expansion.
Global Insights for Indian Policymakers
Amrut Joshi, Founder of GameChanger Law Advisors, noted that the report is the result of a unique collaboration involving lawyers, investors, and electric mobility industry experts. By examining India’s current legal landscape for EV battery packs and drawing parallels with regulations in California, the European Union, and the United Kingdom, the report offers a reference point for Indian policymakers. GLA often represents clients in the electric mobility industry and investors who have backed various EV startups.
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India’s Thrust Towards Sustainable EV Solutions
In a world increasingly focused on sustainability, the EV industry stands out as a driving force for a cleaner, greener future. India, being one of the world’s fastest-growing economies, plays a pivotal role in this global shift. Consequently, there has been a significant surge in demand for electric battery packs in India. Speciale Invest, through investments in companies like Ultraviolette, the ePlane company, and eTRNL, has gained invaluable insights into India’s electric vehicle and battery pack markets.
Role of VC-Funded Start-ups
The report highlights that although many EV Original Equipment Manufacturers (OEMs) have developed battery pack assembly facilities in-house using imported lithium-ion cells or buying imported battery packs, VC-funded startups such as Ather, Ola Electric, Cosbike, and Pure EV continue to supply battery packs to most two and three-wheeler OEMs. This trend aligns with recent market developments.
Current Trends in the Indian EV Market
The Indian EV market was valued at $3.21 billion in 2022 and is anticipated to reach $113.99 billion by 2029, reflecting a remarkable compound annual growth rate of 66.52%. Fleet operators, including taxi services, accounted for 25% of EVs purchased in India in 2022. The surge in EV sales in India stems from its reputation as a cleaner and more efficient alternative to gasoline-powered vehicles. With the growing adoption of EVs, the Indian government has set a goal to achieve 30% electrification of India’s vehicle fleet by 2030. As per the Economic Survey 2023, India’s domestic EV market is projected to witness a 49% compound annual growth rate between 2022 and 2030, with annual EV unit sales expected to reach 10 million by 2030.
Policy Suggestions for Indian Policymakers
The report outlines a set of recommendations for Indian policymakers, encompassing various aspects like Carbon Footprint Declaration (CFD), Battery Swapping Policy, Battery Passport, Second-Life Battery Policy, and Safety Standards for Second-Life Batteries. It also draws a connection between the Guidelines for Battery Safety Tests issued by the Ministry of Heavy Industries in November 2022 and safety regulations in other jurisdictions, focusing on enhancing human safety.
The “Charging Ahead” report is not just a valuable resource for industry professionals but also a significant stride in advancing India’s EV journey towards sustainability. It offers a wealth of information, insights, and recommendations that can shape the future of electric mobility in India.
