EVs, or electric vehicles, have gained a lot of popularity since the pioneer of electric cars, Tesla, entered the market in 2008. Headed by Elon Musk, Tesla’s cars became an instant hit due to the integration of advanced levels of technology in their EV cars. Since then, a lot of auto companies have entered the market and presented a wide range of EV cars and EV bikes across the major markets of the world.
Let’s go ahead and know whether EVs are the future of the Indian auto industry or not.
When Did the Indian Auto Industry Shift to EVs?
The introduction of EV cars in the Indian automobile industry began in 2001, when Reva, the country’s first mass produced EV car, was launched. It was launched by Reva Electric Car Company (now known as Mahindra Electric). The introduction of this car was a major milestone in the Indian automobile industry.
After that, many EV car and EV bike manufacturers jumped into this market. Industry giants like Tata, Hyundai, Kia, etc have competed with each other to produce EV cars for the masses. As of 2024, the top EV manufacturing companies are Tata Motors, Hyundai Motors, Mahindra Electric Mobility, Hero Electric, Kia Motors, etc.
The top selling EV cars in India are Tata Nexon, Tata Tigor EV, MG ZS EV, Mahindra XUV 400 EV, etc. The top selling EV bikes in India are Ola S1, Ather 450X, Bajaj Chetak, TVS iQube, etc.
Upcoming Trends In The EV Industry in 2024
- Rising Sales of EVs in 2024
The sales of EV cars and EV bikes in the Indian automobile industry are set to rise in 2024. Research shows that the sales figure will rise by 66% in 2024. It is evident as the EV sales for the previous year doubled in 2023 as compared to 2022.
One of the main reasons behind this tremendous increase is the realisation of the Indian customer base about the benefits that one gets when purchasing EV cars instead of petrol or diesel cars. The sales growth might be even higher if the new government decides to provide more subsidies for EVs to tackle the issue of excessive pollution by cars running on fossil fuels.
- Tesla’s Entry In the Indian EV Market
Tesla is a huge name in the EV industry. They are considered to be the heart of technical innovations in EVs. Since it’s inception in 2008, Tesla has rolled out EV car models such as the Model 3, Model S, Model Y, Model X, and Roadsters. These cars are considered to be the safest cars in the world. They come with high-tech features like autopilot, lane-assist, smart-summon and much more.
Tesla is set to enter the Indian market soon, as they are searching for a site to build the multi-billion dollar GigaFactory. This factory will be used to manufacture the Model 3 in the initial phase and then move onto Models Y and S once demand increases.
Other manufacturers are in constant fear, as Tesla’s models provide better features than other cars in its segment. Tesla’s Model 3 expected price in India is between ₹70 lakh and ₹90 lakh. The price might seem high, but the reliability and features outperform even the luxury cars in this segment.
- Increased Commercial Usage of EVs
EVs are being increasingly used in the commercial automobile sector. EV passenger vehicles like E-rickshaws and Tempos are already popular in India. Now, the introduction of EV buses in daily passenger services is on the rise. Recently, the Government of Assam launched its EV city bus service in the capital city of Guwahati.
Intercity EV buses being brought by companies like NueGo are also increasing in popularity across major metro cities in India. EV buses are expected to grow in sales in 2024 as manufacturers like Tata, Eicher, Ashok Leyland, etc. shift their focus to making better EV buses.
- Increased Investment In the EV Sector
Investors and research analysts across the major firms are expecting a rise in capital flow for the EV market. In 2023, the investments were less, which stood at $1 billion. But in 2024, due to FAME-II changes, the capital flow and investments are expected to increase sharply.
This means that manufacturers will have stronger reasons to compete in the EV market to provide better products to consumers.
To Summarise
EVs are expected to see a rise in popularity due to better market conditions and increased competition. Tesla is set to arrive in India soon, as it is searching for a place to set up its GigaFactory. The commercial usage of EVs, such as by the Assam government in city buses and in intercity travel by companies like NueGo, highlights the potential of EVs as an all-rounder for the automobile industry.
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FAQs
Will 2024 be a good year for EVs?
Yes, in 2024, EVs are expected to witness a rise in sales and investments of 66%.
When will Tesla come to India?
Tesla is searching for a site to set up a gigafactory in India. Tesla might enter the Indian market by 2024.
Is it a good time to buy an EV car or bike?
Yes, it’s a good time to buy an EV car or bike. But their prices are still on the higher side as of now.
Are commercial EVs popular in India?
Yes, EVs are being used for commercial passenger services in many places across the country. NueGo and the Assam Government use EV buses for intercity travel and city bus services.
