According to a survey by Counterpoint Research, the development of supporting infrastructure and governmental subsidies are expected to contribute to a 66 percent growth in electric vehicle (EV) sales in India this year. By the end of 2024, electric vehicles will account for about 4% of the PV market due to this expansion, it continued.
At the same time that electric vehicle growth is slowing in other important markets like the US and China, sales are experiencing a historic surge. According to a recent Moneycontrol report, automakers plan to introduce approximately 25 Battery Electric Vehicles (BEVs) over the next year. According to the report, about one-third of India’s personal car market is predicted to be made up of electric vehicles by 2030.
Research Vice President Neil Shah provided an analysis of the industry prospects, stating: “We will see players in the broader value chain prioritizing India’s market for technology R&D and export opportunities, in addition to targeting domestic consumption.” This includes companies like Foxconn lowering obstacles for new entrants into India with its inventive MIH consortium-based “localized” design and manufacturing strategy, BlackBerry delivering safety and security software, Qualcomm and MediaTek creating and selling cutting-edge vehicle components, and many more.
EV sales in India
Even though India’s passenger vehicle (PV) sales increased by 10% YoY in 2023 to exceed 4 million units, the country’s electric vehicle sales almost doubled, jumping by 97% YoY to represent 2% of all PV sales. There are a number of reasons for this spike in EV sales, including growing urban consumer demand, policy measures, the expansion of infrastructure, and worries about climate change.
Tata Motors held more than two-thirds of the nation’s electric vehicle market in 2023 thanks to a robust portfolio and a smart partnership with Uber, but Mahindra & Mahindra (M&M) and BYD significantly increased their market share.
Mahindra & Mahindra, which only offers the all-electric SUV XUV400, had an increase in EV sales of almost 2,500 percent last year. BYD expanded by more than 1500% in 2023 despite having just two vehicles in its India lineup: the Atto 3 SUV and the e6 MPV.
Even though it is a premium brand, BYD managed to rank in the top five EV brands in India, demonstrating impressive success in the expanding electric vehicle market (Counterpoint).
Furthermore, Tata’s supremacy is anticipated to be challenged by Maruti Suzuki’s entry into the electric vehicle market. Furthermore, VinFast’s decision to establish a factory in the Indian state of Tamil Nadu underscores the nation’s rising interest in and investment in the production of electric vehicles. All of this not only points to heightened rivalry but also shows how the automotive industry is changing in favor of environmentally friendly and sustainable technologies.
“With the support of major companies like Ola, Reliance New Energy, and ACC Energy Storage, as well as the Made in India initiative, the production of electric vehicle batteries is expected to increase, resulting in reduced production costs and increased sales of electric vehicles.” Government programs like the Advanced Chemistry Cells (ACC) PLI scheme and the recent 15% decrease in import taxes for EVs under $35,000 are revolutionary. All of this not only helps Tesla, but it also shows that India is prepared to accept large investments and create a new ecosystem for electric vehicles and the companies that supply their parts, according to Liz Lee, Associate Director at Counterpoint Research.
According to a story published by Reuters yesterday, Tesla has started producing right-hand drive vehicles at its German facility, which it plans to sell to India later this year. Moneycontrol was the first to reveal late last year that Tesla will be bringing automobiles from its gigafactory in Germany to India.
