EV cars in India
India revealed on Friday that It would reduce import taxes on certain electric vehicles produced by automakers that commit to invest at least $500 million and start local manufacturing within three years.
The government said this new policy will lead to increased competition for car manufacturers from companies like Tesla and Vietnamese car maker Vinfast which are looking to grab the opportunity amid a global slowdown in EV growth.
Sales of total EV cars in India stood at 2% in the last year, and the government is planning to increase it to 30% by 2030.
Electric Car Plans Announced by Indian Automakers
Tata Motors:
Over the next 3-4 years Tata Motors plans to have 10 electric models in its portfolio which plans to make up 25% of its total EV car sales by 2025, compared to 9.3% last year.
Tata Motors commands more than 80% of India’s electric car market.
Tata Motors currently sells four EV models in the automobile market which is a new version of its Nexon electric SUV with a starting price of 1.5 million rupees.
Tata Motors raised $1 billion from TPG’s Rise Climate Fund in 2021 at a valuation of about $9.1 billion for its EV division.
Mahindra & Mahindra
Mahindra & Mahindra expects its SUV electric model sales up to 20%- 30% of its SUV sales by March 2027.
Mahindra’s XUV 400 electric version which is currently selling the company’s unit, plans to launch a new electric SUV in the upcoming year 2025.
Mahindra & Mahindra has raised around $400 million for its Electric car unit from Singapore’s Temasek and British International Investment.
Hyundai Motor India
By 2032 Indian unit of South Korea’s Hyundai Motor plans to introduce five electric models. The company already sells two electric units The Kona & Ioniq 5.
Also, the company plans to grow the number of its charging stations to 439 by 2027.
Over the next day, Hyundai plans to invest close to $4 billion in the Indian market along with the launch of new EVs, charging stations, and a battery pack assembly unit as the company said.
Maruti Suzuki India
India’s top car maker Maruti Suzuki India, plans to have six Electric Vehicle models by 2030.
Japan’s Suzuki Motor holds a majority stake in the company and has said the group’s first battery EV will be launched from Maruti’s plant in the state of Gujarat by the end of 2024.
JSW Group
Indian steel giant JSW group a newbie in the electric car category. The company said it is ready to invest 400 billion rupees in electric vehicle and battery manufacturing projects in the eastern state of Odisha.
The local media reported that the JSW group is in talks with German automaker Volkswagen about delivering technology and components for its EV project.
Electric Vehicle Future in India
- 4.9 lakh EVs have already been sold in India in 2022. It was 1.19 lakhs in 2020.
- Experts say that they expect to sell around 39.21 million electric vehicles by 2021.
- Global EV marketing is growing at a remarkable CAGR of 21.7%.
The future of Electric Vehicle in India is bright
EVs are the future of mobility globally and the future of electric vehicles in India is phenomenal.
Reduced Co2 Emissions and Sustainability
By switching to EVs, India will restrain its CO2 emissions by one Giga tonne by 2030.
This accomplishment will translate to less air pollution in metros and mini-metros and will make the present and future generations more robust.
As the entire planet is grappling with climate change and global warming, automobile users can contribute their bit to save planet Earth by investing in EVs.
Cheaper to Buy & Drive
Earlier, there was a time when EVs had scalability issues, price issues, etc. and today it has changed as Indian consumers are getting benefits of subsidies for EV buyers.
Also, automotive giants like Tata, Mahindra, Hyundai, and Toyota are now launching budget-friendly EVs.
Tata Motors provides the cheapest electric car in India at the price range of 14.99 lakhs.
SUVs like the Hyundai Creta and Vitara Brezza also sell EV cars at similar prices to Nexon EV but running and maintenance costs are higher than the Nexon EV.
Nexon EV features a factory-fitted 30.2 kWh battery pack which is ARAI-certified and comes with a driving range of 312 kilometers per charge.
Charging Made Easy
One of the biggest problems for electric cars in India is that you cannot drive them for long distances as charging an EV was difficult due short of charging hubs across the country.
But at the current time, things have changed with the Indian government releasing a tender for private contractors to set up EV charging stations.
Enjoyable Driving Experience
The electric car engine comes noiseless with zero vibrations and all of these make for an excellent driving experience that is smoother than fossil-fuel cars.
EV sector in India
During a United Nations Climate Change Conference, commonly referred to as COP26 summit, India revealed its ambitious decarbonization target for 2030.
This involves reducing carbon emissions in the energy sector by 50% and attaining 500 gigawatts of renewable energy generation capacity by the year 2030, while also becoming a part of the global EV30@30 campaign.
To achieve this ambition India plans to increase its current renewable capacity three times what is now.
EV30@30 campaign focuses on the goal of ensuring that electric cars make up at least 30% of all new car sales by 2030.
As per the Bain & Company report 40 to 45% of all-electric vehicles sold in India can be electric two-wheelers by 2030 and electric passenger vehicles could make up about 15 to 20%.
As per Niti Aayog’s report, the Indian government is targeting EV adoption to reach 30% for private cars, 40% for buses, 80% for two-wheelers, and 70% for commercial vehicles by that timeline.
According to data from VAHAN, India’s electric two-wheeler market experienced a notable rise in sales in the third quarter of FY 2023-24 compared to the last quarter with a 34.42% rise.
Estimates indicate that the Indian EV market, valued at US$2 billion in 2023 could rise to US$7.09 billion by 2025.
Market projection also forecasts the domestic EV market to achieve 10 million annual sales by 2030.