Indian climate technology, particularly that which relates to start-ups in the electric vehicle (EV) arena, has seized a substantial share of investment, despite a continuing funding slowdown, in keeping with the nation’s aim of reaching net-zero emission by 2070. Industry observers and investors anticipate EV start-ups to give birth to India’s next unicorns as the ecosystem evolves, given the continuous governmental support and expanding infrastructure.
There are currently 970 domestic EV start-ups operating in the nation. However, just one is a unicorn. Two years after its founding, Ola Electric surpassed the $1 billion valuation mark in July 2019. Over the next two to three years, five or six unicorns will emerge in the field of electric mobility. In the areas of passenger cars, public shared mobility, and commercial logistics, the sector is expanding at a rate of double- and triple-digit compound annual growth. Solar dominated the early stages of green technology, and EVs are now unquestionably a major force.
Due to high capital expenditure and infrastructure requirements, which can affect economic returns, climate tech start-ups, especially EV manufacturers, are known to have lengthier gestation periods. Nevertheless, the EV sector has generally escaped funding woes. The two- wheeler sector in India offers a sizable window of opportunity for EV adoption. Two-wheelers can propel expansion since they charge more quickly than four-wheelers do. The lack of adequate charging infrastructure, high production and manufacturing costs, range anxiety, and customer distrust continue to be major obstacles. A wide adoption of EVs would also need addressing concerns with grid capacity, power stability, and standardisation, according to experts.