AUTO, AUTOMOBILES & EV

Snapshot

Overview of Automobile, Auto component, Electric Vehicles in AP

In Top Gear

Recent rapid urbanization in India has sparked an unprecedented growth in the automotive industry in the country. This rapid growth has bolstered the Indian automotive industry as the 5th largest in the world and is expected to be the world's third-largest automotive market in terms of volume by 2026. The automotive Industry contributes a total of 7.1% of the overall GDP and employees 35 million (directly & indirectly) and is the basis of 50% of the manufacturing GDP. It brings in over 15% of the country’s total tax collections and is a host to more than 30 automotive R&D Centres.

#1 largest manufacturer of two-wheelers

#4 largest manufacturer of cars

#7 largest manufacturer of commercial vehicles

Andhra Pradesh has the privilege of being home to two of India’s largest Auto investments in recent times. Kia Motors and Isuzu have made the most of the State’s advantages and are now cruising to greater milestones. The Automobile, Auto components and Electric Vehicle segment is one of the thrust sectors of the state and the state has attracted other marquee investments like Hero Motors, NHK Springs, Kobelco, Nippon, Rockman Industries, THK, Bharat Forge, Apollo Tyres, Ashok Leyland and ATG Tyres etc.

In the past 5 years, more than 350 companies have invested in the state and the investment would be around INR.21,255 cr which provides employment for more than 50,000 people (direct and indirect).

The state has observed constant growth in exports performance and exporting automobile products to more than 30 countries – the major exporting countries especially in automobile includes USA, UK, UAE, Thailand, switzerland, spain, south Africa, South Korea, Japan, Germany, Brazil, China.

19,978
vendor companies - auto-components, auto electronics, plastics, repair & servicing
USD 2.8 bn
invested under automotive segment
INR 30,000 cr
expected by 2023
60,000
Job opportunities
100%
conversion of APSRTC bus & all government vehicles into EV

The state contributes to 10% of auto exports to 30 countries with 36 Large/ Mega auto players invested over USD 2.8 bn

Proximity to Automobile clusters, 21 autonagars, consumption centers, strong ecosystem of auto ancillaries and focus on EV public transportation, make Andhra Pradesh India’s Automobile hub

AP Electric Mobility Policy 2018-23 to attract INR 30,000 cr and create 60,000 jobs

Opportunities across OEMs, Electric Vehicles (2W/4W) & Components, Advanced Cell Batteries, Charging/ Swapping stations, Auto electronics, etc

100% conversion of APSRTC buses & all government vehicles into EVs

Phase out all fossil fuel based commercial fleets and logistics vehicles by 2029

10 lakh EVs, combined across all segment of vehicles

1 Lakh slow and fast charging stations, 100 DC public charging stations by 2024

High density energy storage of at least 10GWh

Electric Vehicles Ecosystem in Andhra Pradesh

India is among a handful of countries that support the global EV30@30 campaign, which targets to have at least 30% new vehicle sales be electric by 2030. India's electric vehicle (EV) market is estimated to be a Rs. 50,000 crore (US$ 7.09 billion) opportunity by 2025, with two- and three-wheelers expected to drive higher electrification of the vehicles.


The Electric Mobility space is a vastly untapped and rapidly growing industry in India and it has not gone unnoticed by the state of Andhra Pradesh. The government has released initiatives such the AP Electric Mobility Policy 2018 – 23 to prioritize the electric mobility ecosystem in the state. Through this policy, the government of Andhra Pradesh is estimated to generate INR 30,000 Cr and employ 60,000 people by 2023.

Automobile, Auto component, Electric Vehicles Ecosystem

Schemes/Policies

In view of the potential for fast growth and generation of large-scale employment in the sector, the State of Andhra Pradesh has identified Electronics manufacturing as a focus area and aims to create employment for citizens of Andhra Pradesh.

R&D INCENTIVES 10% of cost of establishment, limited to INR. 5 Cr 50% of registration for Product Approval, upto INR. 25 lakhs

...
Stamp Duty

100% Reimbursment

Investment subsidy

15% upto INR. 20 Lakhs

Land Conversion

25% of Conversion charges

Power Subsidy

Rs. 1/- per unit for 5 years

NET SGST

100% Reimbursement for 10 years, upto 125% of FCI

Composite Lease cum Buy Model to de-risk investments and reduce upfront costs

Micro

Upto INR 1 Cr ($ 0.14 mn),
Turnover - INR 5 Cr ($ 0.7 mn)

Small

Upto INR 10 Cr ($ 1.4 mn),
Turnover - INR 50 Cr ($ 7.2 mn)

Medium

Upto INR 50 Cr ($ 7.2 mn),
Turnover - INR 250 Cr ($ 35.7 mn)

Large

Upto INR 500 Cr ($ 72.0 mn);
Mega: >INR 500 Cr (> $ 72.0 mn)

AP Industrial Development Policy
pdf

With the recent growth in the electric mobility space, the state of Andhra Pradesh has made promising advancements to help nurture the Electric vehicle space in the country. The AP Electric Mobility Policy 2018 – 2023 is one such example.

...
Stamp Duty/ Transfer Duty

100% Reimbursement

Investment subsidy

25% upto INR. 50 Lakhs for MSME
10% upto INR 10/20 CR for Large/Mega

Land Conversion

25% of Conversion charges

Water Subsidy

50 % off on tariff –first 3 yrs
Reimburse 25% of the cost of Water Treatment
Plant – cap of INR 2 Cr

External Infrastructure

50% infrastructure cost incurred towards setting-up charging & battery swapping stations, capped to INR 2 Cr.

Power Subsidy

Rs. 1/- per unit for 5 years
Reimbursement of Electricity Duty for 5 yrs
Discounted tariff of INR 5.9 per unit for
Charging infra

NET SGST

100% Reimbursement for 7-10 years, upto 100% of FCI

AP Electric Mobility Policy
pdf
Major Investors

Government Departments & Industry Associations

State Government

arrow The State Electrical Regulatory Commissions (SERCs): set the EV tariff and other regulations concerning electricity supply for EV charging.
arrow The Ministry of Housing and Urban Affairs (MoHUA) amended the Model Building Byelaws 2016 and the Urban and Regional Development Plans Formulation and Implementation Guidelines 2014 (URDPFI) to include provisions for EV charging.
arrow The Urban Development Departments/Municipal Corp at the state level are responsible for amendments to the building byelaws and other urban planning frameworks as suggested by MoHUA
arrow Andhra Pradesh Industrial Infrastructure Corporation

Government of India

arrow Ministry of Heavy Industries & Public Enterprises, Government of India
arrow Ministry of power (MoP): the Charging Infrastructure Guidelines and Standards for public charging infrastructure, which laid out an enabling framework for implementation
arrow The Central Electricity Authority (CEA): Responsible for defining technical standards and regulations for EV charging.

Industry Associations

arrow Automotive Research Association of India(ARAI)
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