Auto focus

39% of new vehicles sold in India will be electric vehicles by 2030: Report

Our Bureau | | Updated on: Dec 01, 2021
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Auto executives believe that the auto industry will see more profitable growth in the next five years

According to a KPMG survey of auto executives, by 2030, 39 per cent of new vehicle sales in India will be electric vehicles. Global auto executives believe that the auto industry will see more profitable growth in the next five years and the market share of EVs will grow dramatically by 2030, according to the report. At the same time, supply chains issues and labour shortages remain a cause of concern.

According to KPMG’s 22nd Annual Global Automotive Executive Survey of 1,118 executives across the world, it was found that 53 per cent are confident that the industry will see more profitable growth, in comparison to the 38 per cent who are concerned about profit prospects.

Also read: Under FAME II, Govt has supported 1.65 lakh EVs as of November 25: MHI

Gary Silberg, Global Head of Automotive at KPMG said, “It’s encouraging to see such widespread optimism about the growth prospects for the auto industry. Car manufacturers have rarely faced such an array of technological and business-model changes since the dawn of the automotive industry 130 years ago. Flying taxis, cars by subscription, ubiquitous and fast EV charging stations, big-tech car entrants —these are some of the developments we can expect in the next 10 years.”

Cause for concern

However, executives are worried about a range of issues affecting the supply chain, including the price and availability of semiconductors, steel, rare earth elements and other scarce materials. Over 50 per cent of respondents were “extremely” or “very worried” about the supply of these materials. Furthermore, 55 per cent of executives are very or extremely concerned about labour shortages.

Published on December 01, 2021

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