The year that closes on Tuesday tested the automotive industry with slowing growth and an unsolved puzzle on whether electric or hybrid would lead the transition away from internal combustion engines (ICE), at least in the short term. The year 2025 may not provide an immediate answer, but the major passenger vehicle makers, such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra (M&M), Hyundai, and MG Motors, have lined up a slew of electric vehicles (EVs) for the Indian market.
On the face of it, this means a surge of competition for the first mover and market leader, Tata Motors, which enjoys close to 50 per cent retail market share. So, why is Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, not worried? In fact, Chandra seems to be looking forward to it.
"When the larger industry is growing, a new technology tends to do well. When sentiments are not good, people usually do not experiment with technology," he says in an interview with Business Standard.
The EV market was largely stagnant for most of 2024. There was not much growth in the overall passenger vehicle industry, either. On top of this, the global commentary on EVs was negative, Chandra points out. Thirdly, the second iteration of the government's Faster Adoption and Manufacturing of Electric Vehicles (FAMEII) subsidy scheme came to an end.
The onslaught of fresh launches is likely to expand the EV market.
Losing market share
In recent months, players such as JSW MG Motors and BYD have increased their share of India's close to 100,000 cars a year electric passenger vehicle market (see chart). According to the Federation of Automobile Dealers Associations' research, Tata Motors' retail market share slipped from 68.2 per cent in January to 48 per cent in November.
This story is from the December 30, 2024 edition of Business Standard.
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This story is from the December 30, 2024 edition of Business Standard.
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