Emerging Electric Vehicle industry in India: Need for workforce development

Electric Vehicles (EVs) are the future of the automobile industry. India is initially nudging the adoption of electric vehicles due to numerous government incentives and supports, and it is on the verge of a ground-breaking electric mobility revolution. According to the Avendus Capital report, the market for electric vehicles will be valued at INR 475 billion by 2025. To meet the growing demand of the industry, a strong future-ready workforce has become the need of the hour. A rightly skilled workforce will contribute to the creation of a sustainable and lucrative environment for the EV industry which can eventually grow strong fiscally.

With around 40 crore people in need of mobility solutions by the year 2030, India is currently the fifth-largest automotive industry in the world and has the potential to become one of the top three in the future. There is even a push from the industry to launch heavy electric vehicles soon. In this emerging industry, we will need people to maintain and service electric vehicles, such as electric cars and electric bikes. Let’s take a look at how the electric vehicle (EV) industry is growing.

Growth of EVs in India 

According to IBEF, with 66,704 units sold across all categories in 2021, Uttar Pradesh led all Indian states in EV sales, followed by Karnataka with 33,302 units and Tamil Nadu with 30,036 units. While Karnataka and Maharashtra lead the two-wheeler and four-wheeler segments, respectively, Uttar Pradesh dominated the three-wheeler market.

Making eco-friendly decisions and attempting to halt climate change is crucial in light of increasing global warming. The use of electric vehicles (EVs) is one environmentally responsible option. To make the switch to an alternate, less energy-intensive choices, the global automotive industry is undergoing a paradigm shift right now.

Road transportation is important for a variety of reasons. It is a green industrial policy that aids in the rehabilitation of the economy. It intends to boost energy security and decrease oil imports. It also plays a crucial role in limiting air pollution and combating climate change. The rise in fuel prices, the emergence of new manufacturers, and technological developments in electric vehicles are other factors contributing to the EV industry’s growth.

Government Policies and Incentives for Electric Vehicles in India

The government of India is actively endeavouring to make India a global leader in the electric vehicle (EV) industry. To boost the market for electric vehicles and encourage manufacturers to invest in them and the infrastructure that supports them, the government has introduced several initiatives and policies. They are: 

e-AMRIT portal:

As a one-stop destination for all the electric vehicle (EV)-related information, including charging locations, investment opportunities, policies, and subsidies in the market, the government of India launched the e-AMRIT portal in November 2021. In the  e-AMRIT portal, seven lakh electric vehicles have been registered.

The e-AMRIT portal aims to, 

• Dedicated to promoting electric mobility in India
• Strives to provide all information about EV
• It seeks to make it easier for people to switch from petrol and diesel to electric engines.

FAME-II Scheme

To discourage the use of petrol and diesel vehicles, the Indian government came up with the FAME India project on April 1, 2015. This project was fundamental to India’s adoption of electric mobility.

The FAME II scheme, which has a budget of Rs 10,000 crore, was introduced in April 2019 to support 500,000 electric two-wheelers, 5,000 electric three-wheelers, 7,000 electric buses, and 55,000 electric passenger vehicles. The aim was to encourage more EV usage in India.

The four focus areas of the FAME India Scheme are as follows:

• Demand for technology
• Pilot Projects
• Technology development
• infrastructure for charging

The project was expected to be completed in 2022. However, the FAME-II scheme will now be extended by the government of India till the end of March 2024 in the budget for FY 2022–2023.

 PLI-ACC Scheme

The Department of Heavy Industry launched the Production-Linked Incentive for Advanced Chemistry Cell Battery Storage (PLI-ACC Scheme) in June 2021. By addressing the gap between supply and demand in the EV industry, existing requirements are changed or a replacement is proposed. The EV industry will then advance and the plan will become a viable choice for these companies.

Objectives of the PLI Scheme:

• To persuade domestic and foreign investors to invest in India’s Giga scale ACC manufacturing plants
• To support PM Modi’s vision of “Atmanirbhar Bharat”

 Battery Swapping Policy

Battery Swapping Policy will regulate the requirements for EV batteries used across India. The policy will help promote EVs in time-sensitive service industries like delivery and intercity transit because replacing a depleted battery with a fully charged one is a more feasible option than on-the-spot recharging, which can take hours.

Battery Swapping Policy aims to, 

• To be accepted in commercial applications like 2W and 3W automobiles
• Help battery manufacturers reduce costs
• Make it easier to find machine spare parts

Duty reduction on EVs

Electric vehicles (EVs) utilise lithium-ion batteries, which contain nickel, manganese, and cobalt (NMC), which is necessary for the batteries to function. In India, where battery production depends greatly on these ores but is in short supply.

As a result, imports make up the majority of nickel alloys. Because of the decrease in customs taxes, local producers of EV batteries will experience lower production costs. 

Special E-mobility Zone

Designated electric vehicle mobility zones will be created by the government. Only electric or similar cars will be permitted to operate in the locations that the administration assigns.

Special E-mobility Zone aims to,

• Reduce traffic caused by private vehicles.
• Passengers in these areas are required to operate their EVs or ride in a shared EV, increasing the market share of EVs.

The need for a competent and future-ready workforce for the Electric Vehicle industry in India

The future generation of India’s automotive workforce will need demand-driven skilling as the industry is evolving, which is expected to reach 102 million units by 2030. The Ministry of Skill Development and Entrepreneurship (MSDE) predicts that by 2030, India’s electric vehicle (EV) industry will have generated 5 crore indirect jobs in addition to 1 crore direct jobs. As the industry is expected to create an ample number of jobs soon, the lack of a skilled workforce can become a problem. So, there is an urgent need for the existing workforce to upskill and reskill themselves. And those who wish to launch a career in the domain should have the proper training to join the EV industry.

Also read: How strategic collaborations and industry engagement have played a crucial role in 10 years of ASDC https://nationalskillsnetwork.in/how-strategic-collaborations-and-industry-engagement-have-played-a-crucial-role-in-10-years-of-asdc/

The government’s subsidy schemes appeal to developing a competent and future-ready workforce and upskilling for the manufacturing and service industries’ future in areas of electric vehicles. While these initiatives from the government have helped India’s electric mobility sector and related ecosystem expand, there is a change happening in the manufacturing and servicing sectors, thus creating a demand for skilled workers at various levels.