The ice is melting - this is true for the ice of the polar caps as well as for ICE as in Internal Combustion Engines. ICE vehicles will continue to melt away, and EVs will continue to grow, but it will take some more time than many belief. Although experts are very positive about the development of the Indian EV market, we are lagging behind in many areas.
COST IS KING
The Indian customers are heavily cost-conscious - and EVs still are more expensive than comparable ICE cars. But the demand for EVs is also growing in India. With the continuous increase in fuel prices, electric vehicles are becoming more attractive to Indian people.
The Indian NEV sales leaderboard underlines the growth of this market. It is very dynamic and fast-paced, dominated by affordably priced brands and an increasing number of innovative Indian start-ups.
The costs of a battery system account for the largest share of the manufacturing costs of a vehicle, up to 30-40 per cent of total manufacturing costs. This is a challenge for acceptance in India where, in addition to innovation, the price of the vehicle is the most important purchase criterion. Therefore, all current forecasts show a faster spread of EVs in the two-wheeler segment than in the passenger car segment.
While e-rickshaws are doing very well in the north of the country, e-two-wheeler sales are creeping up to 4 per cent of all two-wheeler sales this year. A total of around 30 manufacturers are competing in this market. On a YoY basis, electric two-wheeler sales increased 370 per cent in March 2022 with Hero Electric in the lead, followed by Ola Electric and Okinawa. These companies and others are offering new models with better battery life, while Tata is leading the e-car market.
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