Korea Needs to Find New Opportunities for Cooperation Following the Acceleration of the Era of Indian Electric Vehicle

Poster of 2021 Indian Electric Vehicle Market Entry Briefing Session [Photo provided: KOTRA]

KOTRA (President&CEO Yu Jeoyng-yeol) along with Automotive Component Manufacturers Association of India (ACAM) holds Indian Electric Vehicle Market Entry Briefing and Consultation Session online for four days from the 20th of this month. This event was organized to establish a new cooperative system in the electric vehicle sector between Korean and Indian companies and to help Korean companies diversify their entry into the global supply chain.

ACMA has members of about 850 auto parts companies across India accounting for 85% of Indian total auto parts industry sales. ACMA has members of about 850 auto parts companies across India accounting for 85% of Indias total auto parts industry sales.

At the two-hour online briefing session from 1:30 p.m. on the 20th officials from KOTRA ACMA and the Export Import Bank of Korea presents in the themes of the prospects for Indias electric vehicle market ways of cooperation between Korean and Indian companies successful cases of entering Indian market and financial programs to support exports of electric vehicles. In particular the presentation of the successful case of Korea-India cooperation by Indian auto parts maker Anand and motorcycle parts maker Sandhar will suggest a detailed strategy to enter Indian market through the establishment of a joint venture between the two countries. Also Edison Motors a domestic electric bus company shares the entire process of supplying electric buses to the Indian market.

A Korean company that applied for participating the conference showed its expectation saying Although it is not easy to enter the Indian market great results are expected if entering the market is succeed adding India is a market worth challenging.

In India demand for electric vehicles is rapidly increasing due to deteriorated air quality cased by urbanization and increased oil import costs. In response the Indian government has set a goal of domestically producing 100% of electric vehicles by 2030 and is pushing for a policy to convert vehicles such as automobiles Rickshaw (three-wheelers) and motorcycles to electric vehicles. In particular the Indian automobile market has a high proportion of two-wheeled and three-wheeled vehicles like Ricksha apart from four-wheeled vehicles. Currently the market size of 1.5 million e-Ricksha (electric three-wheeled vehicles) is increasing by more than 10000 units every month. In addition it is expected that there will be many opportunities for Korean companies in this field as Indian companies are seeking to diversify their import lines and their own production.

Kim Moon-young Director of the KOTRAs Southwest Asia headquarters said India is a promising region to enter the market through cooperation with local companies due to the Self Reliant India policy (policy to revitalize the economy by fostering domestic companies and manufacturing industries announced by the Indian government in May last year). We hope that through this event our small and medium-sized companies will find new opportunities in the Indian market the center of the New Southern Policy.

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