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RIMAC Is the First EV Hypercar Unicorn. Here's What It Means For the Space The growth of the EV ecosystem in India is in sync with India's plan to go carbon neutral and become net zero by 2070

By Saptak Bardhan

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Croatian electric vehicle maker, RIMAC Automobili, recently raised euro 120 million from Investindustrial, an Italian investment firm. The company raised its recent Series D funding of euro 500 million from SoftBank Vision Fund II and Goldman Sachs. Porsche is also said to have invested an eight-figure sum in the company and in return owns 20 per cent of RIMAC Automobili. The recent investments drove the company's valuation to euro 2 billion.

Electric vehicles have garnered attention from all over the globe. The world is united in its battle against global warming. Climate change has become a serious issue with the melting of the polar ice caps. According to recent reports of WMO, the temperature between 2022 and 2026 would be 1.1-1.7 degrees higher than pre-industrial levels. India recorded its hottest days in the summer of 2022.

The electric vehicle market has grown by leaps and bounds. India also got its first EV Unicorn in OLA valued at $5 million at present. There are 16 other Unicorns in the world in the electric vehicle segment. The majority of unicorns reside in China. Norway has emerged as the electric vehicle adoption leader across the globe, according to Global Electric Mobility Readiness Index (GEMRIX). Management consulting firm Arthur D. Little focuses on four major parameters to gauge EV adoption trends: markets, customers, infrastructure and governments. The GEMRIX ranked India 11th among the 15 countries it ranked in terms of market readiness for EV adoption.

Carbon emissions have become a problem for all nations as the world looks to go back to the temperatures in the pre-industrial era. The internal combustion engine-powered cars are not helping with the emission problems. Electric cars are gradually entering the mainstream, especially in India. According to Annual India EV Report Card FY2022 by JMK research, the E2W market in India witnessed a 75 per cent increase in sales in FY2022 whereas E4W registered an increase of 275 per cent as Tata Motors remained the king of the segment.

The Indian EV market is projected to grow at a compound annual growth rate of 36 per cent till 2026 whereas the EV battery market is projected to grow at a compound annual growth rate of 30 per cent till 2026, according to a report by India Energy Storage Alliance. The Indian government also introduced incentives for buying electric vehicles, namely the FAME-I and FAME-II incentives. The micro-mobility sector has switched to pure electric as the sector continues to grow. The micro-mobility sector and the quick commerce sector are growing in synergy as quick commerce players are encouraging their riders to adopt more electric vehicles.

Even as infrastructure and costs remain a challenge for India, the EV ecosystem is growing by leaps and bounds. The growth of the EV ecosystem in India is in sync with India's plan to go carbon neutral and achieve net zero by 2070.

Saptak Bardhan

Former Trainee Writer

Former Trainee Writer
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