Andhra Pradesh’s EV policy targets investment of Rs 30,000 crore by 2030

Andhra Pradesh, like a growing number of states in India, is keen to project itself as an EV manufacturing hub and draw investors.

By Nilesh Wadhwa calendar 02 Aug 2020 Views icon65642 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

The state of Andhra Pradesh, located in the south-eastern coastal region of India, has in the past few years suddenly shot into the automotive limelight. The state is fast transforming itself into a major hub for automobile and component manufacturers. Isuzu Motors India, Hero MotoCorp, Kia Motors India, Apollo Tyres and Bharat Forge are some of the major brands which have set up manufacturing operations in the state. 

Now, in a bid to further grow its status in the domestic automotive industry, the state is gearing up to take a lead in the world of electric mobility. Having recognised that the Central government has lent its shoulder to the cause of e-mobility, more and more Indian states have already announced their own EV policies or are coming out with one. Like Tamil Nadu and Maharashtra, Andhra Pradesh too is keen to become a manufacturing hub for electric vehicles and develop an e-mobility ecosystem.

Although the EV industry in India is still to pick up pace, given the growing consumer awareness and OEMs and suppliers keen to enter the e-mobility space, state governments are keen to set up an EV-friendly ecosystem.

Going by numbers, the Indian EV industry saw sales of around 156,000 vehicles across two-, three-, four-wheelers and bus segment. Meanwhile, there has been a sharp rise in the number of new players across the EVecosystem – vehicle makers, component suppliers, BMS and battery makers, and charging infrastructure. But the results are not yet significant enough to drive mass EV adoption. Therefore, a concentrated effort by all stakeholders, along with the relevant support and infrastructure would play a key role to drive EV sales. This is an area where Andhra Pradesh expects to excel.

In an exclusive interview with Autocar Professional, Mekapati Goutham Reddy, Minister of Industries, Commerce, IT & Skill Development, Andhra Pradesh says: “The state (Andhra Pradesh) has unveiled ‘Electric Mobility Policy 2018-2023’ with an aim to support every aspect of electric mobility and accelerate adoption of EVs that eventually leads to a healthier environment. This policy mainly emphasises and encourages manufacturers, charging infrastructure, demand creation, research and development. Andhra Pradesh’s EV policy is looking to attract Rs 30,000 crore of investment by 2030. It is also looking to create jobs for 60,000 people. The state government also aims at making all commercial vehicles go electric by 2030. “

As part of its EV Policy, the Andhra  Pradesh government has extended incentives to EV b attery manufacturers. What’s more, it could be looking to set up a gigafactory too.

In a recent report, consulting firm Deloitte has predicted that a third of all new cars sold globally will be electrified by the end of the decade, citing a radical shift in consumer sentiment.  The firm estimates that 31.1 million electrified vehicles will be sold per year by 2030 – 10 million more than it forecasted in January 2019. The peak of petrol and diesel vehicle sales, it says, is likely to have occurred during the coronavirus pandemic. 

Although it expects the global car market not to return to pre-pandemic levels until 2024, electrified vehicle sales, it says, are predicted to reach 2.5 million in 2020. Applying a compound annual growth rate of 29%, this should increase to 11.2m in 2025 and 31.1m by 2030. By this point, pure-electric vehicles will account for some 81% of all new EVs sold.

READ MORE: Exclusive interview with Mekapati Goutham Reddy, Industries Minister, Andhra Pradesh in Autocar Professional's August 1-2020 ssue
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