IN INDIA, EV INDUSTRY IRRELEVANT SANS INCENTIVES

The journey of shifting to electric mobilT ity is not going to be easy for automakers as it is tough to generate profitable margins and get scale in the electric vehicles (EVs) segment, says a research report by Bernstein.

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The report noted that generating sufficient margins and scaling up in the EV space is difficult, even with significant financial incentives. It added that many traditional automakers are facing losses, and only a few are expected to remain competitive in the long run.

"It is tough to generate sufficient margins and get scale in EVs. Even with hefty incentives, incumbent OEMs are still unprofitable" the report said. "The EV Industry is not relevant without incentives currently, and to break the ICE sector, it needs intense focus, scale, and continued cost downs" it added.

The report suggested that while niche startups may survive, their long-term market share is likely to remain limited. It noted that instead, the competition in the EV space will primarily be between established OEMs.