EV Push in Budget To Revolutionize Both Transport and Modern Warehousing By CIOTechOutlook Team

EV Push in Budget To Revolutionize Both Transport and Modern Warehousing

CIOTechOutlook Team | Monday, 05 February 2024, 05:47 IST

The government's ambitious push for electric vehicles (EVs), which was outlined in the interim budget for FY25, has the potential to transform not only transportation but also modern warehousing and related industries. The government's goal is to foster a favorable environment for the widespread adoption of environmentally friendly vehicles by providing assistance to both the manufacturing of EVs and the infrastructure for charging them.

The synchronisation of this plan with the 'Make In India' programme and the implementation of Production Linked Incentives (PLI) for EV manufacturing fortifies the government's commitment to foster a robust EV industry, as per economic times.

"The recent budgetary emphasis on electric vehicles represents a transformative moment for India's industrial landscape. The anticipated surge in EV adoption promises to significantly impact both warehousing and manufacturing, fostering a more sustainable and resilient supply chain ecosystem," said Amrutesh Reddy, managing Director NDR Warehousing.

The rise in EVs will not simply reshape the Indian auto industry; It is anticipated to trigger a cascading demand for brand-new logistics, distribution, and storage facilities.

The requirement for decisively found stockrooms to proficiently deal with the assembling, stockpiling, and appropriation of EV parts and items is supposed to essentially develop. The need for sufficient infrastructure to support the expanding EV market is the foundation of this boom.

"The EV space in India is likely to see investments of Rs 94,000 crore ($12.6 billion) across the automotive value chain, over the next five years. During 2023, the country recorded about 1.53 million EV registrations, a 50% YoY growth, indicating continuous growth in adoption of EVs. With an uptick in demand for EVs, the charging infrastructure market is required to grow parallelly to fulfil the demand," said Vimal Nadar, Head of Research at Colliers India.