Contributing 7.1 percent to the Indian GDP and 49 percent of its GDP from manufacturing, The country’s automotive industry is among the fastest-growing sectors globally. India is also the fourth-largest automotive market globally and is predicted to be the third-largest in terms of volume sales in FY26. While the auto industry was most vulnerable to ischemic, ho disruption has rebounded slowly. In the wake of India’s renewed interest in cutting carbon emissions following the United Nations Framework Convention on Climate Change (COP 27 Summit), The automobile industry has morphed rapidly, passing through ebbs, flows, and peaks in a relatively short time.
After a thrilling experience, the mobility sector has drastically changed from a few years earlier. It’s not surprising that 2022 has been a business year that saw the most growth across different verticals, and the mobility sector is the same. It was a year full of evolution, learning, and development for the industry that plays an integral part in our daily lives. This is how the nature of the business has developed on all levels.
The emergence of E-Volts
Electronic automobiles (EVs) are a familiar idea. The concept of electronic vehicles has been used for more than 150 years, i.e., since the 1870s. But it has been over the last decade that EVs are becoming increasingly well-known. With the growing risk of global warming and climate change increasing, the number of people who are aware of their daily habits and how it affects our world.
As one of the primary sources of pollution to the air in the United States, car emissions can contribute between 20 and 30 percent of particulate matter at a level of breathing. In addition, about 8 percent of Greenhouse gas Emissions originate from the transportation sector, and passenger cars contribute around 45 percent of the CO2. This leads to poor air quality that affects not just breathability but our health but also contaminates the environment. These worrying facts have led consumers to opt for EVs and government officials to push the use of EVs.
In October 2021, the Indian government set a goal of 2030 when 30% of all vehicles that travel on Indian roads will be electric. From an economic standpoint, it is believed that when EVs increase to 40 percent in the two-wheeler as well as four-wheeler segment and 100 percent for buses, India can cut its consumption of crude oil by a staggering 156 million tonnes, which is worth the sum of INR 3.5 million. To ensure we meet the goals, the government has been actively accelerating the development of electric vehicle infrastructure. It even provides incentives to EV players and those who buy EVs via programs such as FAME India (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles).
These have led to more EV acceptance across the nation; even though EV infrastructure is still much to be done, it has grown exponentially quickly. To better understand the situation, 2022 saw the registration of nearly twice the number of EVs compared to 2021. Between April and June 2022, India witnessed a 68 percent growth in EV adoption, gaining an important endorsement from the public. EVs have become increasingly prevalent on our roads, and this trend will likely increase in popularity over the coming years.
Aiming at car rental/shared mobility
The per capita income and the capacity to buy have risen in recent years, and as people have more than enough money, they are also finding that their idea of having a car has changed. A car is a fantastic thing. However, it does come with its setbacks. It is, for instance, it has added costs and limited access. Maintenance and insurance expenses have increased, not including the obligation one has to make to a vehicle for a minimum of 4 years.
Alongside, with the pandemic causing people to be cautious about public transport traveling by road is becoming more popular with people looking for self-drive alternatives. The rental vehicle segment comes in. Estimated to generate an annual revenue that is USD 2.63 billion by 2023, India’s rental car sector is seeing a surge.
With the latest technology, such as keyless entry systems and safety features, rental vehicles give customers a sense of ownership without the pressure of commitment.
Mobile connectivity is the way of the future.
Like other industries, technology is among the most critical factors driving the mobility industry. It is a significant factor in the business, with connected mobility gaining popularity. While connectivity was confined to phones and automobile infotainment systems, its speed and ease of use have gained a massive following among users. Industry players now use technologies such as AI, Blockchain, IoT, and 5G to meet their demands to offer customized services. These technologies are also crucial when providing security, one of the aspects customers consider when leasing or purchasing cars. In short, connectivity is the next frontier in the market and is likely to be a significant factor in the growth of connected vehicles.
Bottomline
The mobility sector has grown to a level that was impossible even a decade prior. It is likely to see further policy changes and an increase in infrastructure within the industry that will contribute further to its development.
