India’s e-mobility startups are spearheading a decarbonised future, innovating EV technology to curb environmental impact and cut fossil fuel reliance. Their efforts are key to a sustainable India and achieving net-zero emissions.
Transitioning to electric vehicles (EVs) is crucial in combating climate change and reducing fossil fuel dependence. E-mobility represents a significant shift towards decarbonisation, offering cleaner, more sustainable transportation. As the world urgently seeks to reduce greenhouse gas emissions, adopting EVs is seen as a key solution in this fight.
India aims for net-zero emissions by 2070, as announced by Prime Minister Narendra Modi. To achieve this, key actions include increasing renewable energy capacity from 175GW in March 2024 to 750GW by 2030, reducing carbon intensity by 45%, cutting CO2 emissions by 1 billion tonnes, promoting a sustainable lifestyle through the ‘Lifestyle for Environment’ (LiFE) mission, and advancing clean energy through Mission Innovation (MI). Additionally, India plans to electrify 70% of commercial vehicles, 30% of private cars, 40% of buses, and 80% of two- and three-wheeler sales by 2030.
Across the mobility sector, road transportation produces the most greenhouse gases (GHG). Tailpipe emissions from cars, trucks, and other vehicles account for 75% of transportation-related emissions, compared with 13% from aviation, 11% from maritime transport, and just 1% from rail.
EVs offer substantial environmental benefits by reducing air pollution and carbon emissions, leading to cleaner air and a healthier planet. As more EVs are adopted, the positive impacts become clearer. The automotive industry is shifting towards a net-zero economy through electric, connected, autonomous, and shared mobility. India, the world’s third-largest automobile market, is actively promoting EV adoption to address severe air pollution, with confidence in the rising consumer shift to electric mobility and the potential for exporting made-in-India EVs and components.
| High-performance electric motorcycle |
| The journey began with a vision to create a high-performance motorcycle. Despite facing limited support, the company developed nearly every component in-house. Through persistent learning and adaptation, they have customised their product precisely and extended their technologies to sectors like agriculture and defence. • Overcoming challenges. One significant challenge is the talent gap within the industry. The assumption that some tasks are others’ responsibilities has led to overlooked aspects. As a startup, they have depended on a small team of dedicated engineers willing to learn on the job and surpass their educational limits. • Collaboration and growth. They have been fortunate to collaborate with other startups and industry veterans while navigating these challenges. The growing startup ecosystem in India now benefits from more support from the government and OEMs. This collaborative environment is essential for the e-mobility sector’s growth. • Building a platform for customisation and innovation. They are creating not just a product but a platform that enables customers to customise their vehicles to precise specifications. While customisation was impractical with ICE engines, EVs offer virtually limitless possibilities. Their journey continues, and they invite customer feedback to ensure their product meets customer needs. |
E-mobility imperatives for India
A shift towards electric mobility is crucial for India due to high petroleum imports, negative trade balance impacts, and environmental concerns. EVs are foundational to India’s economic and sustainable development, using electricity instead of fossil fuels for transportation, promoting green growth. EVs, particularly electric two-wheelers (E2Ws), have swiftly grown as a viable alternative to traditional internal combustion engine (ICE) vehicles. In 2023, EV sales in India surpassed 1.5 million, with E2Ws holding a 56% market share, indicating significant industry growth balancing economic development and environmental protection. This transition is vital for India’s sustainable future and achieving net-zero emissions.
The e-mobility sector generates millions of jobs globally and drives the world towards a more sustainable future. Led by startups, this transition from fossil fuels to electric power faces challenges in design, production, marketing, and funding. Nevertheless, their dedication fuels innovation in the sector. India’s e-mobility space, particularly in two- and three-wheelers, is thriving with startup-led innovations tailored for the local market. These pioneers are leading advancements in driving automation, vehicle connectivity, and shared mobility, fostering sustainable transport solutions. The transition to EVs represents a crucial technological step towards a carbon-neutral future, requiring engineers with expertise in both digital technology and mechanics. As e-mobility advances, travel experiences improve, offering safer, more enjoyable, and accessible journeys, ultimately elevating the quality of life.
As of 2020, India had 326.3 million vehicles, a figure expected to grow by 8.1% annually. Two-wheelers comprised 75% of this total, with 243 million units. Approximately 18.5 million new two-wheelers are sold each year. In 2019, the two-wheeler market was valued at USD 257.7 billion and is projected to reach USD 347.41 billion by 2029. The Indian government aims for 30% of vehicle sales to be electric by 2030. Electric two-wheeler sales rose from 20,000 units in 2019 to 842,000 in 2023, with estimates suggesting they will reach 5.7 million by 2030. Market penetration of electric two-wheelers increased from 0.96% in 2019 to 6.73% in 2024 and is expected to rise to 25% by 2030. In 2022, electric vehicle sales reached 1 million units, growing by 46% in 2023 to 1.5 million units, with significant expansion across all vehicle segments.
India electric 2-wheeler market overview
The future of two-wheelers in India, primarily motorcycles and scooters, is set to be electric, driven by their accessibility and affordability. Representing over 70% of all vehicles in the country, these two-wheelers are on the verge of an electric revolution. By 2030, electric two-wheelers are projected to account for 60-70% of new sales, aligning with India’s climate targets. Initiatives such as FAME (Faster Adoption and Manufacturing of Electric Vehicles), and city-level policies aimed at reducing air pollution support this shift. In 2022, the electric two-wheeler market was valued at USD 710 million and is expected to soar to USD 13,089 million by 2032, growing at a CAGR of 33.25%. The adoption of electric two-wheelers also signifies significant technological progress, with numerous manufacturers now offering market-ready models.
In 2023, electric two-wheeler sales reached 841,727 units, marking a 33% year-over-year increase despite reduced FAME II subsidies. This segment, driven by affordability and long-term savings, saw a staggering 438% rise from 2021, highlighting strong demand. Urban last-mile delivery needs and cargo transportation further spurred this growth, with manufacturers benefiting from bulk orders. NITI Aayog’s collaboration with TIFAC on a bottom-up analysis emphasises the need to understand the policy, economic, market, and technological factors driving electric vehicle adoption. Their agent-based tool for market penetration scenarios has been instrumental in forecasting electric two-wheeler adoption in India, aiding infrastructure planning and policy development.
| Self-driving electric tractors |
| An ambitious project is set to transform agriculture with a self-driving electric tractor. The company has gained a significant advantage by securing an exclusive agreement with a specialised firm for a robust motor and controller. This strategic move enhances economies of scale and protects proprietary technologies. • Navigating financial landscapes is complex and requires full-time dedication. For startups, financial stability is as critical as technical and creative expertise. • Breaking new ground, the company has introduced the first fully functional 45HP electric tractor, challenging traditional norms in agricultural machinery. Unlike smaller models, this tractor can handle substantial farming equipment, marking a significant step towards sustainable and efficient farming practices. • With a range of models from 20HP to 45HP and ventures into autonomous functionalities, the company is at the forefront of agricultural innovation. Their innovation also extends to processes, streamlining standard operating procedures for enhanced efficiency and reliability, all without the burden of bureaucratic weight. |
Government policies and support for e-mobility
The role of government policies in shaping the e-mobility landscape cannot be overstated. Initiatives like EV adoption incentives and charging infrastructure investments are vital to accelerating the electric transportation transition. However, startups encounter challenges in navigating these policies, underscoring the need for clearer, more supportive measures to boost the sector’s growth.
To promote electric vehicles, India offers several incentives:
• FAME-II scheme. Launched in 2019 to provide upfront subsidies to buy 1 million electric 2-wheelers and install charging stations in major cities.
• PLI scheme. A US$ 2.2 Billion program offering financial incentives to EV makers over five years to boost domestic manufacturing and bring down EV prices.
• Battery swapping policy. Aims to standardise battery specifications for faster adoption in time-sensitive sectors and benefit manufacturers with economies of scale.
• Duty reduction on EVs. Lowers customs duties on key battery materials and motor parts to reduce EV costs.
• Special E-mobility zones. These are planned zones where only EVs will be allowed to operate, aiming to curb pollution and encourage EV adoption.
The central government’s initiatives are reinforced by state policies offering incentives for EV purchases and supporting infrastructure development. To date, 25 states and union territories (UTs) have introduced or implemented their own EV policies. The Indian government has also launched the EMPS 2024 scheme, replacing FAME-2, with a budget of nearly USD 1 billion to promote electric two-wheelers and three-wheelers. This scheme will be effective from April to July 2024, with potential extensions.
Mobility challenges are sparking discussions about a future shaped by automation, electrification, and enhanced safety. Advances in vehicle connectivity and shared mobility are transforming travel experiences, creating a demand for engineers with expertise in both digital and mechanical domains. The emerging field of Mobility and GPS engineering, ripe for innovation, is still awaiting formal recognition within educational institutions. This shift is reshaping transportation, steering it towards a sustainable, job-rich, and carbon-neutral economy. While the transition, led by sustainability advocates, faces design and fundraising challenges, it aims to address the climate crisis by decarbonising the future.
E-mobility startups, driven by a passion for sustainability and innovation, are reimagining transportation with efficiency and environmental responsibility in mind. Despite numerous challenges, their commitment to breakthroughs in electric vehicle technology propels the sector forward. Startups are achieving greater success in e-mobility than in traditional internal combustion engine (ICE)-based mobility due to the significant technological shift involving battery technology, electric motors, and power electronics. The simpler design of electric drivetrains reduces the capital intensity of EV development, lowering the barriers to entry for new companies.
Beyond technological innovations, e-mobility startups are pioneering new business models such as subscription services and mobility-as-a-service (MaaS) platforms, attracting both consumers and investors. They are building brands centred on sustainability and innovation, appealing to consumers interested in cutting-edge technology and environmental responsibility. In conclusion, startups thrive in e-mobility due to technological disruption, lower entry barriers, regulatory support, shifting consumer preferences, innovative business models, and brand flexibility, making this sector more conducive to new entrants compared to ICE-based mobility.
Navigating through the maze of startup journey
The journey of e-mobility startups is fraught with challenges but offers significant promise. With the right approach, passion, and support, startups can navigate technical, financial, regulatory, and market barriers, from securing funding to achieving technological advancements. Their dedication to sustainability and innovation propels them forward.
Startups such as Creatara, Priceville, and AutoNext Automation highlight the significance of design thinking and strategic product development. Creatara uses a systems thinking approach to develop a customisable platform; Priceville focuses on performance and customisation for electric motorcycles; and AutoNext Automation works on electric and autonomous tractors. These startups are revolutionising the automotive industry with their innovative electric and autonomous vehicles, leading the e-mobility movement.
Design thinking. Design thinking is essential for developing solutions that tackle real-world problems by understanding user needs and crafting products accordingly. In e-mobility, innovation is vital for creating efficient, sustainable, and user-friendly electric vehicles. Startups encounter challenges such as limited resources, the need for lean teams, and complex product development. Despite these hurdles, a structured approach to product development is crucial to ensure reliability and safety, which are critical in the mobility sector.
Mentorship
Mentorship and guidance from industry veterans play a crucial role in navigating these challenges. The collaboration between startups and established companies, as well as the support from the government and the startup ecosystem, is vital for the growth and success of the e-mobility sector.
Digital tools
Access to digital tools and software for design, simulation, and product development is another challenge. Although these tools are vital for speeding up development, their high cost can be prohibitive for startups. Establishing centralised facilities where startups can access these tools affordably could significantly benefit the ecosystem.
Prototyping
Prototyping presents another challenge for startups. The absence of centralised manufacturing facilities in India often forces startups to source components from various locations at high costs. Setting up shared manufacturing hubs could address this issue, allowing startups to create prototypes more efficiently and affordably.
Testing & certification
Testing, evaluation, and certification are essential for bringing a product to market, yet these processes can be both time-consuming and costly. Incubation centres and support organisations can assist startups by providing access to testing facilities and helping to defer certification costs until the startup is more established. Additionally, the absence of incentives for retrofit kits poses a barrier to the adoption of electric retrofitting for internal ICE vehicles.
Funding
Funding is a major hurdle for startups, as the investment landscape often favours software ventures over hardware-focused ones, like those developing electric vehicles. This funding disparity is a significant bottleneck, impeding startups’ progress from concept to mass production.
| High-speed electric two-wheeler: Creatara Mobility Pvt Ltd |
| The journey began with the goal of creating an electric two-wheeler with enough power for confident daily commuting. Standard retrofitted electric scooters were insufficient. They are dedicated to introducing innovative ideas to the existing two-wheeler market. Developing the product from scratch necessitated in-house creation of both mechanical and electronic components, as off-the-shelf parts were inadequate. Through continuous learning and adaptation, they have developed a robust and adaptable vehicle platform. • Overcoming challenges. One significant challenge is the talent gap within the industry. The assumption that certain tasks are others’ responsibilities has led to overlooked aspects. As a startup, they have depended on a small team of dedicated engineers willing to learn on the job and surpass their educational limits. Another challenge is finding investors who grasp the nuances of hardware and automotive startups, which differ greatly from SaaS, mobile app, or e-commerce ventures. • Collaboration and growth. They have been fortunate to work with fellow startups and industry veterans in overcoming these challenges. The expanding startup ecosystem in India now benefits from greater support from the government and OEMs. This collaborative environment is crucial for the growth of the e-mobility sector. • Building a platform for customisation and innovation. They are creating not just a product but a platform enabling customers to customise their vehicles to precise specifications. While customisation was impractical with ICE engines, EVs offer nearly limitless possibilities. Their journey is ongoing, and they actively seek customer feedback to ensure their product aligns with customer needs. |
Retrofitting – A new class of electric vehicles
Retrofitting existing vehicles to electric power is a burgeoning area of innovation in e-mobility. Although the concept appears straightforward, it presents complex challenges requiring precision and creativity. Issues like space constraints for battery placement and high battery costs are just the start. Financial limitations and regulatory hurdles add further complexity to the transition from concept to execution.
Tadpole Projects, which began as a college project, demonstrates the transformative potential of e-mobility. The startup has successfully retrofitted ICE vehicles for the Indian Army, surpassing the performance of the original ICE vehicles. This achievement highlights the role of innovation and adaptability in advancing e-mobility. Retrofitting existing vehicles to electric power can greatly boost e-mobility adoption by converting numerous vehicles into cleaner, more sustainable transportation options. However, this process faces several hurdles, including:
• Legal and regulatory compliance. The need for adherence to evolving legal and regulatory frameworks.
• Technical challenges. Space constraints for battery placement, ensuring safety standards, and integrating new technologies with existing vehicle systems.
• Testing and certification. Robust testing and certification processes to ensure roadworthiness and safety.
The readiness of infrastructure, legal frameworks, and market acceptance for vehicle retrofitting in India is still developing. Although there are successful examples, like retrofitting the Gypsy and Tata vehicles, the process is still emerging for a wider range of models. Retrofitting costs and timeframes, such as for a Honda City, vary based on factors like vehicle complexity, modification extent, and regulatory approvals. This process requires careful planning, engineering precision, and adherence to safety standards. Updating the vehicle’s registration certificate (RC) post-retrofitting is essential to legally recognise it as an electric vehicle, which involves meeting specific standards and regulations.
Startups in the e-mobility sector play a vital role in speeding up the transition to electric transportation. They face challenges including regulatory compliance, technical difficulties, and the need for comprehensive testing and certification. Despite these hurdles, the e-mobility sector holds immense potential for innovation and growth. The discussion around e-mobility also includes earthmoving equipment and heavy-duty vehicles. Although electric motors provide superior torque, integrating electric technology into heavy-duty vehicles, such as earthmovers, involves careful consideration of battery capacity and operational range.
The e-mobility landscape is further enriched by the growing interest in hydrogen fuel cells as an alternative to battery-electric powertrains. The suitability of hydrogen for various automotive segments, especially heavy-duty vehicles, is under ongoing research and debate. As the e-mobility sector progresses, collaboration among startups, established OEMs, and government bodies will be essential. The future of e-mobility, both in India and globally, relies on the combined efforts of all stakeholders. Financial incentives and supportive policies, such as the forthcoming FAME III scheme, may reduce retrofitting costs and expedite the transition to electric mobility.
E-mobility represents more than just a trend; it signifies the future of transportation. With advancements in driving automation, vehicle connectivity, and shared mobility, we are nearing a revolution that promises safer, more enjoyable, and accessible travel experiences. The shift to electric vehicles is a significant step toward a sustainable, carbon-neutral world, improving our quality of life and fostering a greener future. Widespread e-mobility adoption involves multiple facets, with retrofitting playing a key role. As the ecosystem evolves and regulatory frameworks improve, we can anticipate more innovative success stories that will pave the way for cleaner roads. This transition offers unique challenges and opportunities for both startups and established companies, reshaping the entire automotive industry.
This article is from a panel discussion at Delhi EXPO 2023, Delhi. The speakers are: N. Kishor Narang, Principal Design Strategist & Architect, Narnix Technolabs Pvt Ltd; Vijayanta Ahuja, DGM, International Centre for Automotive Technology (ICAT); Vikas Gupta, Co-Founder, Creatara Mobility Pvt Ltd; Dr Prajwal Sabnis, Co-Founder, Orxa Energies; Jawaad Khan, Founder & Director, Tadpole Projects; and Pankaj Goyal, Co-Founder & COO, Autonxt Automation Pvt Ltd. It has been transcribed and curated by Akanksha Sondhi Gaur, Senior Technical Journalist at EFY.
