Revving up the EV business in India
The automotive industry in India is currently the fourth largest in the world and is expected to breach into the top three by the end of 2021. India is currently the largest manufacturer of two-wheelers, three-wheelers and tractors, the second largest manufacturer of buses, the third largest manufacturer of heavy trucks and the fourth largest manufacturer of cars in the world. Not only is this industry expected to achieve phenomenal growth in the coming years, it is also undergoing a significant transformation with a rapid increase in demand for Electric Vehicles (EVs). The growth in the adoption of Electric Vehicles has been fuelled by the government’s push towards electric mobility in order to control the rising pollution caused by ICEs (Internal Combustion Engines) as well as its vision of having at least 30% of EVs on Indian roads by the year 2030.
While the government has taken various favourable steps over the past few years from a policy standpoint in order to incentivise the manufacturing as well as usage of EVs in India, disruptive innovations in the tech space with regards to Artificial Intelligence (AI), Internet of Things (IoT) & Telematics have also contributed majorly to the proliferation of electric vehicles in India. If we look at delivery services in the country who have been one of the earliest and fastest adopters of EVs (e-scooters), advancements in AI and IoT have enabled these companies to monitor the movements of their delivery agents to ensure safe and timely deliveries. Innovations in the Telematics space have now made it possible to track and monitor vehicle movements both quickly and accurately. AI has now made it possible for drivers to assess each trip after its completion in terms of the route they took, the speed at which they drove, if they drove dangerously, and also provide useful tips on how to make their deliveries safer. Some EVs are also equipped with features like navigation assist, remote diagnostics, anti-theft alarm and lock, ride statistics, speedometer call alerts etc. Advancements in AI and IoT have also played a significant role in the battery charging technology of EVs by significantly reducing the time it takes to recharge them.
With India forecasted to become the fourth largest market for Electric Vehicles over the next 20 years, it has already seen a slew of start-ups emerging in the fields of charging infrastructure & mobility services aiming to capitalize on the massive potential of this growing sector. Some of the most promising start-ups in the Indian EV space are:
Ather Energy – Manufactures electric scooters and electric vehicle charging network called AtherGrid
Yulu – An IoT based bicycle and electric scooter rental service provider
Tork Motors – A high-performance EV and charging infrastructure manufacturer
Ola Electric – A unicorn startup that’s working with driver-partners, vehicle manufacturers and battery companies to make cost-effective EVs for daily mobility
This sector has also attracted the attention of foreign giants like Tesla Inc. who recently announced the incorporation of its subsidiary ‘Tesla India Motors and Energy Pvt Ltd’. Tesla is by far the most popular and recognizable all-electric vehicle manufacturer and the worldwide leader in electric vehicle sales and its foray into India is a testimony to the exciting opportunities that this market has to offer. Even global automakers like Ford & Volkswagen have lined up investment plans to enter the Indian EV market.
In fact, for foreign tech companies and start-ups looking for global business expansion, there couldn’t have been a better time to come and be a part of India’s EV journey, even if it’s just to test the waters before making any long-term commitments. A quick, convenient and commercially viable way to do so is by availing the services of an Indian PEO (Professional Employer Organization), a route which offers the distinct benefits of:
– Establishing a business set up in India within days without undergoing the tedious process of setting up a legal entity in the country and infusing additional time and resources to ensure compliance with Indian laws.
– Hiring a dedicated workforce in India and maintaining control over the quality, standard of operations as well as work culture by having direct contact and coordination with the India team. The PEO, in this case, would not only act as the legal employer in India but also take care of HR, payroll, insurance, benefits, and risk management services on behalf of the foreign company.
– ‘Testing the waters’ in the Indian EV market before getting into the hassles of establishing a legal entity for subsequent business expansion. Given that India’s EV industry is still in a nascent stage, if you’re a foreign SMB or a start up looking to make your mark in its growth story, PEO services in India offered by Remunance is exactly what your business needs!