New Delhi
A recently
launched Grant Thornton Bharat-FICCI report mentions that there will be an
increase in imports from Germany as electric vehicles (EVs) slowly increase in
India. At the moment, both countries leverage each other’s positives and work
together on next-gen technologies like the Internet of Things (IoT). The total
import to India from Germany has increased by 3.56% for the period April
2020-January 2021.
As per the
report, India has the capacity to expand its share in the global auto
components market to 4-5% by 2026. This will take place due to the exports
growth and import substitution initiatives done by the industry for the
‘Aatmanirbhar’ initiative.
The report
further added that Germany is progressing quickly towards electrification and
delivers an $11,420 subsidy for electric vehicles, of which $4,192 is given by
German original equipment manufacturers (OEMs). Indian electric vehicle
industry is an upcoming one with e-mobility and shifting to a complete
electrified market being a priority for the Government of India (GOI). This
makes India a desirable electric vehicle market for German OEMs to enter and
explore.
Explaining the
relationship between the two countries, the report said that India and Germany
could integrate well for EV manufacturing, supply chain and
infrastructure. Uncertainty is the only hindrance and the overarching theme
considering the nascent state of e-mobility uptake in India. But continuous
interaction and interchanges with Germany and at a global level will help India
develop its e-mobility solutions.
Currently, India
and Germany partner by leveraging advantages on each side and intensifying
cooperation on next-generation technologies like the Internet of Things. In
2018, the Indian automobile market pipped Germany to become the fourth largest
in the world and established stronger trade with the country. The economic and
trade relations between both countries are strong and Germany is India’s
largest trading partner in Europe.
Source – News 18
Image Source: Pixabay
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