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Jewar Airport Can Help Noida Transform into an EV Manufacturing Base

By Sanjeev Arora, Director, 360 Realtors

NOIDA / September 20, 2024: In India, the adoption of EV taking is taking place at a notable pace. There are numerous benefits of EVs. It costs around Rs 7-8/ KM for a normal vehicle whereas it is virtually zero in case of EVs.

It is believed that around half of the air pollution is caused due to vehicular movement, which is further making both the governing agencies and local public understand the significance of EV. Owning an EV is no more a buzz word or a fashion statement but a reality. Interestingly both end users and businesses are adopting EVs.

Across all the major segments such as 2-W, 3-W, and 4-W, EVs are replacing regular vehicles. Many third-party logistics and delivery companies are switching to EV. It makes perfect business sense for them to optimize their fuel cost by using EV for last-mile delivery. Despite a high price, B2B players can leverage economies of scale with EVs.

Amazon has announced to purchase 10,000 EVs by 2025, while Flipkart has declared to convert 40% of its mobility into Electric medium. By 2030 IKEA has announced plans to completely adopt EVs worldwide.

Advancement of battery technologies is another factor that is driving the growth. Earlier battery range was limited. But today long range batteries are available. Even the footprint of charging points & swapping points has increased notably, further making it easier to own and operate an EV.

New Opportunities Emerging in the EV Landscape

The current size of the Indian EV market is modest. However, as per government estimates, by 2030 the market can reach USD 266 billion, growing at a CAGR of 90-95%. Even if the market grows by 60-70% of the anticipated rate, it will entail huge shifts in the automotive industry.

While there will be tremendous growth in business for OEMs from India and abroad, new opportunities in the form of battery, head gears, swapping stations, charging stations, converters, controllers, brakes, etc.

Already numerous big brands such as Tata Motors, Okinwa, Ola, Hero Honda, Exide, are active in the space.

The shift in the EV drive will also be backed by favourable policies by the government. GOI under the FAME-2 scheme offers generous subsidies to EV buyers. Meanwhile in 2021, an INR 18,100 crores PLI has been announced for the ACC (Advanced Chemical Cells). The GST rates on EVs have also been lowered to 5% from 12% earlier.

Jewar can Emerge as the Next Hub for EV Manufacturing in India

Near the upcoming Jewar airport an EV manufacturing cluster has been proposed, which will be spread across 100 acres of land parcel on the Yamuna Expressway. The business parks will boost production of EVs, batteries, E-Rickshaws, etc. The UP state government has also offered numerous incentives to boost EV manufacturing in the region. The host of incentives include 50% discounts on stamp duty, capital interest subsidy, around around 60 to 90% discounts in the State GST returns, etc.

A dedicated infrastructure region coupled with favourable policies can help Jewar leapfrog into the next EV destination of the country.

Setting up an EV battery or related business in the Jewar business park will help enterprises to access the UP market. The state of UP is becoming a prominent node in India’s evolving EV landscape. In 2023, a total of around 277,000 EVs were sold in UP, jumping by 70% compared to the previous year. Out if this 3-W amounted to a major portion (over 230,000 units.)

Setting up an EV or related business will help in accessing other prominent markets such as Delhi NCR. Delhi is one of the top markets in terms of EV sales. Having business production near the national capital will enable businesses access top tier talents, marketing agencies, media houses, policy think tanks, consultancies, etc. which are required for the EV business to flourish.

EVs business can also greatly benefit from the Multi-Mode Logistics Hub (MMH) in the Jewar Airport region. The 87-acre MMH will comprise an airport terminal (30 acres) alongside warehousing zones (57-acres). It will serve businesses in NCR and other parts of North India alongside the dedicated EV cluster discussed.