India’s EV market nascent, but full of endless possibilities

New Delhi: Sales of electric vehicles are increasing rapidly in India. Research firm Counterpoint has claimed in its report that electric-vehicle sales in India are expected to increase by 66% this year after almost doubling in 2023, as subsidies given on EVs help in increasing demand.
Along with this, the process of creating supporting infrastructure in the country is also gaining momentum. It is noteworthy that this figure is important in this regard because the increase in EV sales is happening at a time when the pace of EV growth has slowed down in other major markets like the United States and China.
EV’s share in total cars sold in 2023 will be 2 percent
A report by research firm Counterpoint estimates that by 2030, EVs are expected to represent about a third of India’s personal vehicle market. The country’s relatively small but rapidly growing EV market is dominated by domestic carmaker Tata Motors. The share of electric models in total car sales was only 2% in 2023, but the government is aiming to take it to 30% by 2030. The Indian government has reduced EV import tax on some models last month.
Center reduced EV import tax on some models
The government has stipulated that the benefit of the exemption will be available only if a foreign EV company invests at least $500 million and is ready to set up a unit domestically and start manufacturing within three years. This step of the central government is being seen as a victory for all foreign automakers including Tesla. Meanwhile, there is news that Elon Musk-led Tesla has started producing right-hand drive cars at its plant in Germany for export to India later this year. Vietnamese automaker Vinfast also plans to invest $2 billion in the country.
M&M and BYD gave tough competition to Tata
Vietnamese company Vinfast has started construction of a factory in Tamil Nadu, located in the southern part of the country, in February. Last year, Tata Motors had more than two-thirds share of the country’s EV market, Counterpoint reported. But it lagged behind Mahindra & Mahindra and Chinese automaker BYD. Mahindra & Mahindra has recorded EV sales growth of nearly 2,500% last year with just one model, the all-electric SUV XUV400. BYD also made a huge splash in the EV sector last year. With just two models in its India line-up, the E6 M5 and Atto 3 SUVs, it has recorded a growth of over 1,500% in EV sales in the country.