India Electric Vehicle Market Outlook, Key findings, Market Trends, Industry Analysis and Forecast (2021-2027)

Electric Vehicle market is expected to grow at CAGR of 44 % during the forecast period and is expected to hit 6340 Thousand Unit annual sales by 2027.

India Electric Vehicle Market Overview:

The Indian electric vehicle market differs greatly per state, depending on demographics, income levels, regulatory landscape, and urbanization. Uttar Pradesh, for example, has one of the lowest urbanization rates in the country. There has been a substantial increase in the use of electric two-wheelers. Maharashtra, on the other hand, has a large population. Has the highest pace of urbanization, the largest penetration of electric three-wheelers, and Automobiles for passengers. While electric cars (EVs) represent for less than 1% of total vehicle sales in India, the market is predicted to grow rapidly and be worth at least USD $ 4.8 billion (INR 475 billion) by 2025. With 62% of the market, two-wheelers are the most popular, followed by three-wheelers with 37 %. India Electric Vehicle Market To know about the Research Methodology :- Request Free Sample Report The report has covered the market trends from 2015 to forecast the market through 2027. 2019 is considered a base year however 2020’s numbers are on real output of the companies in the market. Special attention is given to 2020 and effect of lockdown on the demand and supply, and also the impact of lockdown for next two years on the market. Some companies have done well in lockdown also and specific strategic analysis of those companies is done in the report. Key Findings – • In India, the market for battery-powered automobiles is still in its infancy. For example, Due to the current high costs of ownership, India's largest automaker, Maruti Suzuki, does not currently sell an electric vehicle. • Hero Electric Vehicles is the market leader in the two-wheeler industry in India. Last year, the privately held Hero Electric sold over 50,000 devices over a dozen different versions. Bajaj Auto and TVS Motor are two other two-wheel electric car producers. In India, these firms sell around 50 different varieties of electric two-wheelers. • Tata Motors will invest more than US$ 2 billion in its electric vehicle business over the next five years, according to Reuters, after raising financing from private equity firm TPG. • According to MMR report, half of the vehicles the business would sell by 2030 will be electric. India Electric Vehicle Market Dynamics: India has adopted Bharat Stage IV (BS IV) emission norms and will transition to Bharat Stage VI (BS VI) by 2020, skipping BS V. The government has chosen to go straight from BS IV to BS VI gasoline restrictions due to environmental degradation, growing pollution levels, and health hazards presented by automobile emissions. This is a step toward a more sustainable and environmentally friendly future. As a result, conventional fuel-based vehicle usage is predicted to decline, increasing demand for electric vehicles. With the implementation of BS VI, India will be on level with the United States and other developed European countries in the automotive sector. Such projects are likely to be successful. One of the key restraint in the Indian electric car market is the lack of sufficient charging facilities. The most important factor in determining whether or not electric automobiles will be sold in the country is the charging infrastructure. Customers' adoption of electric automobiles is hampered by the limited or insufficient availability of charging stations, as well as a lack of acceptable financial programmes to support the expansion of such infrastructure. However, technological hurdles such as limited electric range and long charging times are projected to stymie the country's adoption of electric vehicles. The electric charging infrastructure faces various gaps and problems. In India, AC001 and DC001 chargers are the most common options for public charging stations, but most 2W, 3W, and 4W versions do not. Another important issue is a lack of funding for grid development to accommodate the growing load. According to industry estimates, greater use of electric vehicles will boost electricity demand by 100 TWh by 2030. Other problems include a scarcity of land, a lack of instruments to lease government-owned and agency-owned land to set up public charging stations, and a lack of inexpensive renewable energy, which means charging EVs puts a strain on the already overburdened coal-fired electricity infrastructure. India's public transportation systems are among the world's most commonly used. As a result, shared electric mobility has a chance to acquire traction in India's electric car market by satisfying the growing demand for transportation systems. Mobility systems are undergoing change as a result of increased connectivity, new business models, and fast decreasing technological costs. Two well-known business models that provide shared electric mobility options are Ola Cabs and Uber. For example, Ola and Mahindra & Mahindra established an initiative in Nagpur, Maharashtra, in 2017 to create an electric mass transportation ecosystem. Over 100 Mahindra e20 plus vehicles have already been purchased by the company. It also intends to purchase vehicles from other original equipment manufacturers (OEMs), such as BYD Automobile Company Ltd. and TATA Motors Ltd., for its fleet. In addition, Uber India has partnered with Mahindra & Mahindra Ltd. To begin with, a few hundred electric vehicles would be deployed in Hyderabad and Delhi. As a result, the growing use of electric vehicles in shared mobility services in India creates a lucrative opportunity. India Electric Vehicle Market Electric vehicle Market Trends – Electric buses are helping India's EV market grow. - India is the world's second most populous country after China, which has the world's largest electric bus fleet, India is pushing hard for bus electrification. Many state governments have already begun purchasing electric buses from Chinese and domestic manufacturers. The Green Urban Transport Scheme (GUTS) was introduced by the Ministry of Urban Development in 2018 to reduce emissions from public transportation vehicles in the country. The government has also suggested a grant of INR 250 billion for electrifying public transportation. In February 2020, India's first inter-city electric bus service was launched by Union Transport Minister Nitin Gadkari. These buses are produced by Mitra Mobility Solution and have a range of 300 kilometres on a full charge. To address India's growing demand for electric buses, many local bus makers are cooperating with Chinese manufacturers. As an example, Foton PMI stated in 2019 that it would invest roughly INR 500 crore in a joint venture with China's Beiqi Foton Motor Co. to build electric buses in India. One of the airlines has already received five electric buses from the company for internal operations. India's electric vehicle market is expected to be led by three-wheelers. - Because the government is focusing on introducing electric vehicles into public transportation, the Ministry of Road Transport and Highways (MoRTH) of the Government of India developed an e-rickshaw policy in 2016. It includes provisions for e-rickshaws in order to encourage low-cost, low-pollution urban mobility. In addition, many state governments have their own rules regarding three-wheelers. Amazon plans to deploy 10,000 electric rickshaws for delivery across India to promote the country's green revolution. Rivian, an electric vehicle company, will supply the e-rickshaws, which will be operating in 20 cities by 2025. Similarly, Ola said in 2018 that over the next year it would add 10,000 electric rickshaws to its fleet in India. It is part of their ambitious effort to bring one million electric vehicles on the road by 2021, dubbed Mission: Electric. There are around 1.5 million e-rickshaws in India, and approximately 11,000 new e-rickshaws are added to the road each month. These e-rickshaws are more common in places such as Delhi, Punjab, Uttar Pradesh, and Uttarakhand.

India Electric Vehicle Market Segment Analysis:

India Electric vehicle market is segmented into product, vehicle type, technology and power source. Based on Product, the market is sub-segmented into BEV and PHEV. In 2020, the BEV segment had the biggest revenue share, accounting for roughly 96 % of the whole market. The segment's dominant market share can be attributed to consumers' growing preference for EVs over ICE vehicles, as well as regulations on vehicular CO2 emissions. BEVs can dramatically reduce vehicular emissions while also lowering the total cost of ownership over time. Over the projected period, advances in battery technology and falling lithium-ion battery prices are likely to drive demand for BEVs. Over the forecast period, the PHEV segment is expected to grow at a CAGR of over 105 %. Plug-in Hybrid Electric Vehicles (PHEVs) are vehicles that combine an internal combustion engine with a low-range, high-voltage (HV) battery system to improve fuel efficiency. PHEVs have a more powerful electric motor and a larger battery that can be recharged not just from an external source of electricity, but also from the internal combustion engine and regenerative braking. As a result, PHEVs provide consumers with a versatile and convenient mode of transportation.India Electric Vehicle MarketBased on vehicle type, the market is sub-segmented into passenger car, commercial vehicle, two wheeler and others. In 2020, the commercial vehicle segment had the biggest market share, accounting for roughly 57 % of the total market. The continuing introduction of electric light-duty commercial vehicles and electric buses in the country has contributed to the segment's growth. Electric buses are already gaining steam, as the government pursues aggressive plans to increase the number of electric vehicles on the road in key cities around the country in order to reduce vehicular pollution. Electric light-duty commercial vehicles and electric buses are already available in the country from companies like Tata Motors, Mahindra & Mahindra Ltd, and Olestra Genentech Limited. Over the forecast period, the passenger car market is expected to grow at a CAGR of over 106 %. Due to increased government investments in EV infrastructure and tax benefits offered to consumers, the diesel and gasoline-based passenger vehicle market is shifting toward electric passenger vehicles. For example, the National Electric Mobility Mission Plan (NEMMP) 2020 of the Indian government aims to promote the adoption of hybrid and electric vehicles while ensuring national fuel security. Companies to Watch – Tata Motors – Tata motors is leading organization in automobile industry. Company offers wide range of cars, sports cars, trucks, busses and also defense vehicles. Tata Motors accounted for 70.57 % of total sales in the first half of FY2022, with 4,419 units sold between April and September 2021. Tata has now surpassed all of FY2021's sales of 4,219 units at the halfway point of the current fiscal year. While the Nexon EV is India's best-selling EV with 3,618 units and a 58 % market share, the Tigor EV is third on the EV chart with 801 units and a 13 percent market share. The Tigor EV, which was launched on August 31 at an aggressive Rs 11.99 lakh, has been added to the company's portfolio. Tata also debuted the Xpres-T EV in mid-September, in response to increased demand from fleet users. Tata Motors EVs continued to rise in October 2021, with 1,586 units sold across three models – Nexon, Tigor, and the X-Press T EV – bringing the company's seven-month total to 6,005 units. The company is on track to set a new record in FY2022, and it is expected to break the 10,000-unit EV sales barrier for the first time this fiscal year. Tata Motors' rapid EV sales growth, on the other hand, may be about to stall. The global semiconductor supply issue, which has hit Indian OEMs, is to blame. "The typical waiting period for most (Tata Motors') passenger vehicles is around 6-8 weeks," P B Balaji, CFO, said at a media event last week. MG ZS EV – MG Motor India's ZS EV is ranked No. 2 in the India e-PV pecking order, with high customer demand and market interest. The ZS EV has a 29 % in the first half of FY2022, with 1,789 units sold. The ZS EV, like the Nexon EV, has exceeded its full FY2021 sales tally of 1,499 units. Hyundai Motor India, which launched the Kona EV in India in July 2019, may be unable to capitalise on the opportunity because the model is too unorthodox and is also more expensive than rivals when spec-to-spec. While the Korean automaker is developing an inexpensive EV for India, the new-generation Kona, which was unveiled globally, will also arrive in the country next year. Kia, the sister brand, is looking into bringing its worldwide EV line-up to India in the coming years. The consumer move to e-mobility is projected to accelerate quicker than expected, thanks to increased focus by the federal and state governments, as well as the private sector and OEMs, on establishing EV-friendly infrastructure in the form of EV charging stations around the country. While the transition from ICE to EV is faster in three- and two-wheelers, urban India is expected to plug in at a higher rate. India Electric Vehicle Market Greater Adoption of EV in India – Tata Motors intends to enhance the momentum in the electric car market as well, recognizing the industry's potential. In India, the manufacturer will unveil a number of electric vehicles that are expected to change the sector. Tesla, the world's largest electric manufacturer, is preparing to introduce its vehicles in India. Tesla has also been lobbying the Indian government to cut electric vehicle import taxes. It's also the first big fundraising effort by an Indian automaker to promote clean mobility at a time when global automakers like GM, Volkswagen, and Toyota are investing tens of billions of dollars to accelerate EV adoption and fight China's supremacy. Tata is planning to release electric cars with greater battery packs than current versions. The battery on most electric vehicles is now covered by a five- to eight-year guarantee. An electric car battery, on the other hand, is expected to last 10 to 20 years before needing to be changed. With various innovative features to aid driving, Tata's next automobiles could be even more entertaining. Tata is working on the next generation of electric four-wheelers and plans to add 10 electric vehicles to its line-up by 2026. India also hopes to raise electric vehicle sales by 30% by 2030. The government has already introduced a number of incentive programmes, including one for local battery manufacture. Despite global concerns about battery shortages and other issues, the Indian automaker appears certain that they will be able to reach their objectives, given their experience in the subcontinent with earlier models. India Electric Vehicle MarketIn India, the electric vehicle market is not growing at the same rate as it is in other nations. For example, although battery electric cars (BEVs) accounted for 5.4 % passenger vehicle sales in Europe in FY20, they accounted for only 0.2 % in India. However, as the ecosystem improves, it is expected that e-cars would account for 12% of all passenger cars by FY26, with e-car sales totalling 5, 14,365 units, or a CAGR of 152.94 % from FY21 to FY26. In India, e-car sales grew after 2019, with a 361.78 % year-over-year growth in 2020. As of July of this year, registrations for 2021 have climbed even more, surpassing 2020 sales. By 2026, India will require roughly 4 lakh charging stations to meet the demand for 20 lakh electric vehicles on the road. As of March 2021, the country had 1,800 charging stations. According to an independent assessment conducted by the CEEW Centre for Energy Finance, roughly 29 lakh public charging stations will be required by 2030 to promote EV adoption under the NITI Aayog's base case target. About 21 lakh (71%) of the chargers would be low-capacity chargers for two- and three-wheelers. Apart from adding more charging stations, a lack of space is a barrier since consumers need a location to charge their electric vehicles. The Indian government is taking many steps to address the hurdles in order to make India a % electric vehicle nation by 2030. However, it remains to be seen whether these steps are sufficient to attain the aim within the timeframe allotted. To encourage early adopters to pick EV and reduce range anxiety, a balanced ratio of EVs on the road and charging points is essential. The objective of the report is to present a comprehensive analysis of the global India Electric Vehicle market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The report also helps in understanding the global India Electric Vehicle market dynamics, structure by analyzing the market segments and project the global India Electric Vehicle market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global India Electric Vehicle market make the report investor’s guide.

India Electric Vehicle Market Scope: Inquire before buying

India Electric Vehicle Market

Global India Electric Vehicle Market Key Players

• MARUTI SUZUKI INDIAN LIMITED • Toyota Motor Corporation • AB Volvo • Tata Motors • Ashok Leyland • Hero Electric Vehicles Private Limited • Honda Motor Co., Ltd. • Bayerische Motoren Werke AG • Avon Cycles Ltd • Lohia Auto Industries • Electro herm (Indian) Ltd • Yamaha Golf-Car Company • Club Car, LLC • Speedways Electric • Maini Material Movement Pvt. Ltd. • Auto Power • Carrieall Car Private Limited • Ampere Vehicles Pvt. Ltd. • Tunwal E-Vehicle Indian Pvt. Ltd.

Frequently Asked Questions:

1) What was the market size of India Electric Vehicle Market markets in 2020? Ans - Global India Electric Vehicle Market was worth 380 Thousand Units in 2020. 2) What is the market segment of the India Electric Vehicle Market? Ans -The market segments are based on Metal and Application. 3) What is the forecast period considered for India Electric VehcileMarket? Ans -The forecast period for India Electric VehcileMarket is 2021 to 2027. 4) What is the market size of India Electric Vehicle Market markets in 2027? Ans – India Electric Vehicles is estimated as worth 6340 Thousand Units in 2027. 5) Who are the Key players in India Electric vehicle Market? Ans - MARUTI SUZUKI INDIAN LIMITED, Toyota Motor Corporation, AB Volvo, Tata Motors, Ashok Leyland, Hero Electric Vehicles Private Limited, Honda Motor Co., Ltd., Bayerische Motoren Werke AG, Avon Cycles Ltd, Lohia Auto Industries, Electro herm (Indian) Ltd, Yamaha Golf-Car Company, Club Car, Speedways Electric, Maini Material Movement Pvt. Ltd., Auto Power, Carrieall Car Private Limited.
1. India Electric Vehicle Market: Research Methodology 2. India Electric Vehicle Market: Executive Summary 2.1. Market Overview and Definitions 2.1.1. Introduction to India Electric Vehicle Market 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. India Electric Vehicle Market: Competitive Analysis 3.1. MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2. Consolidation in the Market 3.2.1 M&A by region 3.3. Key Developments by Companies 3.4. Market Drivers 3.5. Market Restraints 3.6. Market Opportunities 3.7. Market Challenges 3.8. Market Dynamics 3.9. PORTERS Five Forces Analysis 3.10. PESTLE 3.11. COVID-19 Impact 4. India Electric Vehicle Market Segmentation 4.1. India Electric Vehicle Market, by Product (2020-2027) • BEV • PHEV 4.2. India Electric Vehicle Market, by Vehicle Type (2020-2027) • Two Wheelers • Passenger Cars • Commercial Vehicles • Others 4.3. India Electric Vehicle Market, by Technology (2020-2027) • Hybrid Electric Vehicle • Plug-In Hybrid Electric Vehicle • Battery Electric Vehicle 4.4. India Electric Vehicle Market, by Power Source (2020-2027) • Stored Electricity • On-Board Electric • Generator 5. Company Profile: Key players 5.1. Mahindra and Mahindra 5.1.1. Company Overview 5.1.2. Financial Overview 5.1.3. Global Presence 5.1.4. Capacity Portfolio 5.1.5. Business Strategy 5.1.6. Recent Developments 5.2. MARUTI SUZUKI INDIAN LIMITED 5.3. Toyota Motor Corporation 5.4. AB Volvo 5.5. Tata Motors 5.6. Ashok Leyland 5.7. Hero Electric Vehicles Private Limited 5.8. Honda Motor Co., Ltd. 5.9. Bayerische Motoren Werke AG 5.10. Avon Cycles Ltd 5.11. Lohia Auto Industries 5.12. Electrotherm (Indian) Ltd 5.13. Yamaha Golf-Car Company 5.14. Club Car, LLC 5.15. Speedways Electric 5.16. Maini Material Movement Pvt. Ltd. 5.17. Auto Power 5.18. Carrieall Car Private Limited 5.19. Ampere Vehicles Pvt. Ltd. 5.20. Tunwal E-Vehicle Indian Pvt. Ltd.

About This Report

Report ID127142
Category Electronics
Published DateNov 2021
Updated Date
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