INDIA ELECTRIC VEHICLE MARKET
- In FY 2021, EV sales in India were at 2,38,120 registered units
- The majority of the registrations were from electric two-wheelers followed by three-wheelers and cars
- Tier 1 and 2 cities will lead the way for electrified vehicles across India and this will be on the backs of the development of charging stations in these areas
- The main reason for sales of electrified vehicles will be running costs as petrol prices increase across the country
- State-wise EV subsidies, as well as central EV subsidies, will also play a huge role in EV penetration
- Electric vehicles will also face competition from other alternate fuel-powered vehicles such as CNG
India is an important market in Asia with ~16 million vehicles sold annually, 12.5 being two-wheelers (largest 2 wheeler market in the world). The average price of the vehicle sold is also lower compared to China, USA and Europe.
Among the passenger cars, mid and entry-level hatchbacks dominate the market while among 2 wheelers 75% of the market is below 150 cc.
3-wheelers also hold an important role in the Indian market mainly for commercial purposes. It is a common mode of transport for last-mile connectivity as well as holds an important role in door to door transportation in both rural and urban settings
INDIA ELECTRIC VEHICLE MARKET DYNAMICS
Of the 238,000 registered electric vehicles sold in India in 2020
- 103,000 units were low speed electric scooters (top speed <25 kmph)
- 41,000 units were high speed electric scooters
- 88,000 were three wheelers
- 5,900 were cars
The number of unregistered electric three wheelers is estimated to be at 59,000 units
Hero electric held the pole position for electric two wheelers across the country while Tata held the pole position for electric cars in the country.
There currently exists a FAME-2 subsidy for all-electric vehicles except buses where Rs 15,000 per kWh of the battery is subsidized up to 40% of the overall vehicle price. States have also implemented subsidies for electric vehicles as well as budgets for infrastructure development
STATE SUBSIDY AND INFRASTRUCTURE FOR ELECTRIC VEHICLES
Charging stations have been allocated for states across the country with Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019 under the FAME scheme
- 317 in Maharashtra
- 266 in Andhra Pradesh
- 256 in Tamil Nadu
- 228 in Gujarat
- 205 in Rajasthan
- 207 in Uttar Pradesh
- 172 in Karnataka
- 159 in Madhya Pradesh
- 141 in West Bengal
- 138 in Telangana
- 131 in Kerala
- 72 in Delhi
- 70 in Chandigarh
- 50 in Haryana
- 40 in Meghalaya
- 37 in Bihar
- 29 in Sikkim
- 25 in Jammu &Kashmir
- 25 in Chhattisgarh
- 20 in Assam
- 18 in Odisha
- 10 in Uttarakhand
- 10 in Puducherry
- 10 in Himachal Pradesh
The FAME scheme aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers
Delhi, Maharashtra, Andhra Pradesh, Bihar, Chandigarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Odisha, Meghalaya Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Gujarat and Uttarakhand are states who have rolled out subsidies for electric vehicles as well as announced plans to electrify vehicles
They are along the lines of decreasing overall vehicle price, improving charging infrastructure as well as increasing government fleet and public fleet to electric vehicles
Gujarat announced a policy to further subsidize EVs over the FAME scheme. It includes an incentive of Rs 10,000 per kWh for electric vehicles. Two wheelers get a maximum of Rs 1.5 lakh, three wheelers Rs 5 lakh and four wheelers Rs 15 lakh. The goal is to target 2,00,000 EVs of which 1,10,000 will bee-two-wheelers, 70,000 e-three-wheelers and 20,000 e-four-wheelers.
INDIA ELECTRIC VEHICLE MARKET SEGMENTATION
INDIA ELECTRIC VEHICLE MARKET SIZE AND FORECAST
India’s electric vehicle market is estimated at $xx Billion in 2020. The Indian EV battery market alone is estimated at $XX Billion.
In 2020, Hero electric, Okinawa, Ampere and Ather held the market for EV two wheeler sales. For Passenger cars, Tata, Mahindra, and MG were the largest players.
The three-wheeler market involved a large segment of unorganized players as well as the introduction of organized players such as Mahindra, Piaggio etc.
Among the electric two wheelers in India, there are 32 brands with more than 100 models in the market. By 2026, there will be a substantial decrease in the number of players as those who can not compete will lose their position. In 2020, only 11 players managed sales above 3 digits in the market.
Among the passenger cars, Tata, MG, Hyundai and Mahindra are the current players in the market. Since the market is very price sensitive, subsidies will drive it and urban areas will be the target markets. Maruti as well as Renault have spoken about possible electric vehicles to hit the market over the next 2 years. The market will be dominated by fleet usage mainly taxis and fleets with fixed path operations as running costs will be much lower than an ICE fleet and the capital invested can be returned over the course of 3-4 years.
ELECTRIC CAR MANUFACTURERS
ELECTRIC TWO WHEELER MANUFACTURERS
THIS REPORT WILL ANSWER FOLLOWING QUESTIONS
- Upcoming vehicles, by OEM, by vehicle type and by EV type (2021-2026)
- EV sales, by top 10 cities and state-wise legislation
- Advancements in EV battery by Chinese players
- Opportunity for traction motor , motor controller, on-board charger and Inverter manufacturers
- On-going developments in Electric commercial vehicle market, vehicles in pipeline and estimated sales volume
- OE-supplier alignment for battery, On-board charger and DC-DC Converter