Chennai: India will see industrial capex of Rs 22-24 lakh crore till 2030 and electric vehicles and its value chain will comprise roughly 10% of that amount. According to a report by Crisil, electric vehicles and the auto value chain will get around Rs 2.2 lakh crore in investments over the next 8 years, up from 0.5 lakh crore in the 2015-22 period.
Total auto/transport related investments will go up from Rs 4.2 lakh crore in 2015-2022 period to Rs 5.4 lakh crore in the 2023-2030 period. But majority of India’s green capex will come from the power sector going up from Rs 6.4 lakh crore to nearly Rs 19 lakh crore. “Green capex will be 50-55% of the total annual investment spend,” said the report.
Already auto and solar together comprise 65% of the capex committed under the PLI schemes said the report. The PLI scheme will generate capex of Rs 2.2-2.5 lakh crore of which 55% will be green capex in segments like solar, EV, batteries and others. Solar comprises 25% of this capex kitty while auto comprises 15% said the report.
“Electric vehicles will hit 6-7 million units between 2025-2030 led by e-two wheelers, although the bulk of the green capex will be from power sector,” said Hetal Gandhi, director, Crisil Research. Green investments in power will rise by 2x over the medium term and around 50% of total power investments will go green by 2030. Similarly, over 50% of transportation investments will be linked to electric vehicle value-chain in the medium term. Renewable energy linked investments will account for 80% of the total spend in power and 65% of the total green investments said the report.
Responding to this piece of CRISIL report quoted in TOI Abhijeet Sinha, National Program Director Ease of Doing Business & National Highway EV said – “Back in 2018, when EoDB Services entered E-Mobility with NHEV Pilot, We used to start from need of e-mobility, dwell upon its benefits against IC and ends with rosy projections; I hardly saw any discussion reaching to – who will finance it’s CapEx ?
I call it the Electric Mobility journey from a negative banking list Tech to becoming the upcoming priority lending segment with CapEx investors and this is actual Ease of Doing Business he added.