The comprehensive report outlines investments, potential gains, and financial mechanisms required to transition India's automobile industry towards net-zero emissions, aligning with the nation's climate goals.
08 Aug 2024 | 2371 Views | By Sarthak Mahajan
The Climate and Sustainability Initiative (CSI), a global research firm committed to decarbonising the economies of Asia and Africa, has announced the launch of its India operations. Along with this, the organisation has unveiled a comprehensive report titled "India's Auto Industry: Mapping the Course to Net Zero by 2070," which ...
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The Climate and Sustainability Initiative (CSI), a global research firm committed to decarbonising the economies of Asia and Africa, has announced the launch of its India operations. Along with this, the organisation has unveiled a comprehensive report titled "India's Auto Industry: Mapping the Course to Net Zero by 2070," which lays out a detailed roadmap for decarbonising India's auto sector.
The report presents a detailed scenario for the automobile sector's decarbonisation, focusing on the necessary investments, potential gains, and the financial mechanisms required to support this transformation. The analysis spans various vehicular categories, including two-wheelers, three-wheelers, cars, buses, and trucks.
Some of the important findings of the report include the need for Original Equipment Manufacturers (OEMs) to invest approximately USD 323 billion to produce EVs alongside existing technologies, which is expected to generate a staggering USD 14.1 trillion in revenue for OEMs by 2070. The transition could further lead to an overall market creation exceeding USD 19.7 trillion by 2070, with cars accounting for 63% of this market, contributing nearly USD 15.5 trillion. Additionally, the automobile sector's transition could potentially yield USD 4.1 trillion in Goods and Services Tax (GST) revenue from 2020 to 2070.
The report also discusses the challenges in the auto industry, such as the requirement for vehicle loans worth USD 9.6 trillion by 2070 to achieve the above-mentioned transition, and the need for manufacturers to invest USD 196 billion until 2070 to achieve complete domestic battery production.
According to Vaibhav Pratap Singh, Executive Director, Climate and Sustainability Initiative (CSI), "The transition to a net-zero auto industry in India is not just an environmental imperative but also an economic opportunity of unprecedented scale. Our report illustrates that with the right investments and policy support, India can lead the global shift towards sustainable mobility."
Shri Thiru S. S. Sivasankar, Hon'able Transport Minister, Government of Tamil Nadu, further emphasised the state's proactive efforts in incentivising manufacturers and consumers to adopt clean energy technologies, positioning Tamil Nadu as India's premier EV manufacturing hub and a leading renewable energy producer.
The report highlights the need for innovative financing solutions and continued policy support, including favourable tax regimes and incentives for domestic battery production, to facilitate the transition to net-zero emissions in the auto sector. "India's Auto Industry: Mapping the Course to Net Zero by 2070" aims to serve as a vital resource for policymakers, industry stakeholders, and financial institutions.