EVolution India: Sparking the Future of Mobility

Market Overview:

The India electric vehicle market is expected to expand at a CAGR of 94.4% from 2021 to 2030 and be valued at USD 152.21 billion by 2030, according to a new report by Grand View Research, Inc.

Market Drivers:·        

• Rising Conventional Fuel Prices
• Stringent Emission Norms
• Environmental Awareness
• Automaker Initiatives
• Consumer Incentives
• Infrastructure Development

Segmentation:

• BEV: BEVs can help in significantly cutting down vehicular emissions and reducing the total cost of ownership in the long run. Advances in battery technology and the plummeting lithium-ion battery prices are also expected to drive the demand for BEVs.
• PHEV: The PHEV segment is projected to expand at a CAGR of over 105% from 2021 to 2030. Plug-in Hybrid Electric Vehicles (PHEVs) are designed to enhance the use of the internal combustion engine in interaction with a low-range, High Voltage (HV) battery system. PHEVs have a more powerful electric motor and a significantly larger battery that can be recharged not only with the help of an external source of power but also using the ICE and regenerative braking. Hence, PHEVs offer a flexible and convenient mobility option for consumers.

Government Initiatives:

• Attractive incentives being offered by the Indian government on the production and purchase of electric vehicles to encourage the adoption of electric vehicles
• Stringent GreenHouse gas (GHG) emission norms drafted by the government, such as the Bharat Stage (BS) VI emission standards introduced by India’s Ministry of Road Transport and Highways (MoRTH)
• Stringent emission norms being drafted by the government and the growing environmental awareness among Indian consumers
• Phase-II of the Indian government’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme envisages further enhancing the adoption of electric mobility and the development of its manufacturing eco-system
• Diesel and gasoline-based passenger vehicle market is witnessing a shift toward electric passenger vehicles owing to increasing investments by the government in EV infrastructure, along with tax benefits offered to consumers
• The Indian government’s National Electric Mobility Mission Plan (NEMMP) 2020 envisages promoting the adoption of hybrid vehicles and electric vehicles while achieving national fuel security.

Challenges:

The initial purchase price of electric vehicles tends to be higher than the gasoline-fired and hybrid vehicles, which particularly restrains the adoption of electric vehicles among price-sensitive customers.

Future Projections:

Some key players operating in the India Electric Vehicle market include Hyundai Motor India, Tata Motors, Mahindra & Mahindra Ltd, Audi AG, BMW AG, MG Motor India Pvt. Ltd., and Olectra Greentech Limited offering a wide range of electric vehicles including passenger cars, light commercial vehicles, and electric buses. The companies are particularly focusing on introducing advanced and technology-driven products in the market.