India EV Industry Will See Positive Growth: GlobalData Report

India's automotive industry is poised for positive growth in the coming year, according to a new report by data analytics firm GlobalData. This growth will be driven by government support and expanding job opportunities across the country.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which has been in operation since April 2019, and is now functioning as the PM E-Drive, will continue to be a key factor behind this expected growth. The policy encourages states to provide financial and non-financial incentives to boost electric vehicle adoption.

The report states that nearly 25 per cent of Indian cities are expected to experience strong growth in the automotive sector, while about 50 per cent will likely see moderate growth. Cities such as Mumbai, Hyderabad, and Pune are projected to lead this expansion. However, the outlook isn't positive everywhere. About 7.5 per cent of cities may face stagnant growth, while 9.7 per cent and 15.5 per cent could see moderate and significant declines, respectively. Chandigarh is specifically mentioned as a city likely to face challenges.

Hyderabad and Mumbai stand out as particularly well-positioned for growth due to their expanding service sectors and job opportunities. Hyderabad, for example, has experienced a surge in employment thanks to government initiatives promoting startups and entrepreneurship. The state government's focus on IT and IT-enabled services has been crucial for job creation there.

The report, which surveyed 31 major cities, found that infrastructure improvements in roads, transportation, and power supply have made certain cities more attractive to businesses and workers, which in turn drives automotive demand too.