The Report Maps Out a USD 19.7 Trillion Opportunity
The Climate and Sustainability Initiative (CSI) today launched its India operations and released a comprehensive report outlining a decarbonization roadmap for the country’s auto industry. Titled “India’s Auto Industry: Mapping the Course to Net Zero by 2070,” the report presents a detailed blueprint for transitioning India’s auto sector to net-zero emissions, aligning with the nation’s climate goals.
The report estimates that Original Equipment Manufacturers (OEMs) will need to invest approximately USD 323 billion to produce electric vehicles (EVs) alongside existing technologies. However, this transition is expected to generate a staggering USD 14.1 trillion in revenue for OEMs by 2070. The overall market creation is projected to exceed USD 19.7 trillion by 2070, with cars contributing the largest share.
While highlighting the immense economic potential, the report also addresses the challenges. To achieve the transition, India will require vehicle loans worth USD 9.6 trillion by 2070, and annual battery demand for EVs could reach 1,716 GWh by the same year.
Vaibhav Pratap Singh, Executive Director of CSI, emphasized the report’s findings, stating, “The transition to a net-zero auto industry is a significant economic opportunity for India. With the right investments and policies, India can lead the global shift towards sustainable mobility. We are committed to supporting this transition through innovative solutions and collaborations.”
Shri Thiru S. S. Sivasankar, Hon’able Transport Minister, Government of Tamil Nadu, added, “Tamil Nadu is committed to becoming India’s premier EV manufacturing hub. We are actively incentivizing manufacturers and consumers to adopt clean energy technologies.”
The report stresses the need for innovative financing solutions and government support to overcome financial barriers and accelerate the transition. The government’s role in boosting financing, promoting domestic battery production, and creating favorable tax regimes will be crucial.
CSI’s report is a valuable resource for policymakers, industry stakeholders, and financial institutions, providing insights into the potential pathway for a net-zero auto sector in India.
Key Findings:
- OEMs need to invest USD 323 billion to produce EVs.
- Potential revenue for OEMs by 2070: USD 14.1 trillion.
- Overall market creation by 2070: USD 19.7 trillion.
- Vehicle loans required by 2070: USD 9.6 trillion.
- Annual battery demand for EVs by 2070: 1,716 GWh.