EY today launched a report on the future of mobility titled “Unlocking the Electric Mobility Value Pools Along The eMobility Value Chain” at the “EV Industry @ 2030: Future Roadmap” conference conducted by The Society of Manufacturers of Electric Vehicles (SMEV). The report provides an in-depth view of the status and future of electric mobility along with a comprehensively defined EV value pool.
EY directed an extensive and integrated research, and outlaid the EV Value Pool, describing the varied intricacies of the EV ecosystem. The report comprehensively analyses the EV ecosystem, right from the manufacturing of battery packs to the end-of-life processes for discarded batteries. The EV value pool, as defined by EY, is comprised of nine different individual ecosystems, all interlinked and performing towards a sustainable future of EVs in India. The EY report highlights that for the EV industry to replicate the success of the Indian auto market sector, this value pool must be developed, and the market is mature for indigenous production with the help of support policies developed by national, state, and local government entities.
Vinay Raghunath, Partner and Automotive sector Leader, EY India, said “We hope that this thought leadership will serve as a reference point for stakeholders aiming at accelerating electric mobility. It would undoubtedly help new entrants make a start by understanding the fundamentals of electric mobility, evaluating multiple value pool opportunities that the value chain offers and finding detailed insights on policies and technologies.”
There is an opportunity to set up new business models where new players and the traditional automotive ecosystem come together in an organized manner to provide products and services to consumers.
There are opportunities for growth and setting up new business models for both traditional automotive players and new entrants in the market. The large gap in the manufacturing capability and forecasted demand for components for EVs can provide substantial growth in the coming decade. There are significant opportunities in the new streams of revenue such as in the battery manufacturing and recycling ecosystems, capabilities which does not exist in the country currently.
Som Kapoor, Partner, Future of Mobility & Autos Retail Leader, EY India, said “EV batteries are costly, but their value chain — use, reuse, recycle — offers revenue potential. Developing a used battery market presents a major opportunity for industry participants to create new assets, access valuable new revenue streams, secure supplies of raw materials, and drive EV use. It is a critical aspect of the future viability of EVs and will be a major competitive differentiator for those that drive the market as opposed to those that sit on the sideline.”.
While there are a lot of development opportunities in the future, a robust manufacturing supply chain based in India can provide strategic value in terms of reduction in emissions, and savings on imported raw materials and oil. Localisation will also offset the loss of manufacturing jobs from reduced manufacturing of traditional internal combustion engines (ICE) vehicles. Supportive policy, falling battery prices, a robust charging infrastructure, and supply chain localization are among the key factors that will instigate the growth of EVs in India.
EY is a global leader in assurance, tax, strategy, and transactions and consulting services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
This news release has been issued by EY Services Limited, a member of the global EY organization that also does not provide any services to clients.
For more information on our organization, please visit ey.com.