Electric Vehicles are gaining widespread adoption and acceptance across the world with the general consumers growing to understand the advantages electric vehicles(EV) can bring. This feeling has also grown slowly and slowly in India also in the last few years. India’s electric vehicle industry had been slowly growing, but it was severely harmed by the COVID-19 pandemic, which resulted in supply chain disruptions and the closure of manufacturing units across the country due to lockdowns and travel restrictions.
It must be noted that India’s electric vehicle (EV) business is still in its infancy, and much infrastructure must be created around the country to support it. However, the process has begun, and thanks to different government initiatives and policies, it is likely to expand at a significantly quicker rate during the forecast period.
As public opinion in India shifts toward electric vehicles, demand is gradually increasing. Furthermore, with the government’s increasing push for EV production in India through various initiatives, red-tape reduction, and various schemes that promote domestic EV production. All of this adds up to a lot of movement in the EV sector, with new companies entering the market with a lot of zeal, whether it’s with four-wheelers or two-wheelers EVs, or announcing their imminent plans for the launch of the same.
Electric Vehicle Manufactures in India are jumping at the opportunities to manufacture four and two wheelers in India. Every major auto manufacturer in India has already brought Electric based models or announced of their plans to launch the vehicle.
According to a report published by Statista in 2021, the top three players in India’s passenger car market held approximately 75% of the market share. Maruti Suzuki, Hyundai, and Tata are the top three players, with Maruti alone accounting for up to 50% of the market.
The government has been pushing for a adoption and growth of the EV ecosystem in India through its various initiatives, schemes and incentives. However, the sales growth of the EV’s haven’t been explosive so far. Many experts believe that one of the main reasons is that Maruti, the largest car manufacturer in India, which controls up to 50% of the market through its various models, has yet to enter the market. And their entry into the electric vehicle market could result in a rapid adoption rate in the industry. According to latest reports, they have started work it and plan to launch their first EV in the country by 2025 and the company which already provides Hybrid cars in India has also said that it plans to invest $9 Billion by March 2026 for R&D into automotive electrification. According to the company, they will be targeting aggressive pricing for the upcoming EV’s by opening a battery manufacturing plant domestically in India which will help them in achieving this.
Even though Maruti plans to enter the EV market in a few years, a number of manufacturers, including TATA, Mahindra, MG, and Hyundai, have already done so with their various models. Tata’s EV has already claimed the title of best-selling EV in India due to its early launch. All of the manufacturers have already announced additional models to expand their electric vehicle lineups, with Mahindra announcing multiple EVs and plans to launch before Maruti’s first EV.
Also, it’s not only four wheelers that are having an impact by EV’s. Two and Three Wheeler vehicles has also seen movement in EV’s. Recently, the government launched a tender through EESL to procure 100,000 electric two- and three-wheelers. EESL is India’s government-owned energy service company (ESCO) and the world’s largest public ESCO. It is entirely owned by the government. And the tender states that it’ll be used in different use-cases such as garbage disposal, freight loaders, food and vaccine transport and passenger autos, etc.
The two-wheeler EV market also seen a lot of movement by various manufacturers. Hero Electric was one of the earliest companies to bet on the potential of electric two-wheelers and is now the most selling two-wheeler Electric manufacturer in India. However, there are several players in the market such as Okinawa Autotech, Ampere Vehicles, Ather Energy with their various models. There are several other manufacturer who have announced of entering the market such as the Ola Electric whose first Electric Scooter will formally launch on 15th August, 2021. It’s been reported that they will be pricing their two-wheeler very aggressively which can disrupt the market.
EV’s adoption is also been taken up by various companies in India. The country’s leading delivery giants E-commerce giant Flipkart, Amazon and Bigbasket (Grocery Delivery Giant and a part of the TATA group) have pledged to adopt electric vehicles. Amazon plans to have 10,000 electric vehicles delivering packages in India by 2025, while Flipkart has stated that it will deploy more than 25,000 electric vehicles by 2030 and BigBasket has stated that it will achieve its 90 percent EV goal within three years.
Tesla, a leading international electric vehicle manufacturer, has expressed serious interest in expanding in India, with CEO Elon Musk tweeting recently that he is “certainly interested” in bringing Tesla to India, but that “India’s Import Taxes concern him.” And, according to some reports, talks are taking place between the parties.
There’s no denying that there’s a lot of work to be done in the area of electric vehicle adoption across the country. But, as we’ve seen, whether it’s the public sector, the private sector, or the government, everyone is working toward the same goal of EV adoption and ecosystem development. And as I wrap up this article, I’ll leave you with the optimistic thought of “I can’t wait to see and document India’s EV journey in the coming decade.”
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