India's new mobility market is expected to touch $90 billion by 2030. While revenue from the taxi cluster is expected to exceed $61 billion by the time, revenue from ride hailing is expected to hit $43.3 billion by 2025.
Data from Frost & Sullivan comes at a time when the global trend is gradually shifting towards public and shared transport and the lack of infrastructure and parking is pushing people away from vehicle ownership. These factors are also leading to growth of alternate new moblility.
According to data, new mobility will be driven by taxi services, expected to touch $61 billion from $1.5 billion in 2018. It will be followed by dynamic shuttle services, expected to touch $ 23.626 billion from $132 million, traditional carsharing from $69 million to $592 million and P2P carsharing from $7 million to $298 million.
The new segments like mobility as a service (MaaS) and corporate are expected to touch $3.36 billion and $172 million, respectively, from nil in 2018.
According to data, ride hailing in India is expected to reach $43.3 billion by 2025 from $15.3 billion in 2017 and number of vehicles in fleets is expected to touch 4.2 million from 1.4 million.
The latest data comes as good news for OEMs, which have been witnessing one of the worst downturns in the history. Wholesale dispatches of passenger vehicles slumped 23.7 per cent year-on-year in September, the eleventh straight month of such decline, reflecting the slowdown in the wider economy and an overestimation of pre-festival sales by automakers.
In March, this year, ride hailing app Ola tied up with Korean carmakers Hyundai and Kia Motors. Under the arrangement, the three companies extensively collaborate on developing unique fleet and mobility solutions; building India-specific electric vehicles and infrastructure; as well as nurturing best in class opportunities and offerings for aspiring driver partners with customized vehicles, on the Ola platform. Hyundai and Kia will invest a total of $300 million in Ola.
Household spend on transportation in Indian cities is very high as a percentage of income despite being the lowest in real values. Less than 10 per cent of income is spent on transportation. Indian cities spend around $35 per capita on transportation, which is very low compared to the global average of $650.
Annual transportation budget is between $26 billion to $70 billion in five major Indian cities, while in other countries it ranges from $394 billion to $2.113 trillion.