Power Play

With luxury EV options outnumbering budget EVs in the Indian market, and booming sales of affordable models, the Indian electric mobility space is bullish despite the paradowical challenges the technology poses

- Niraj Kakade Kanaad Chatterjee

The recent fuel crisis across major Indian cities might have made even the staunchest of purists mull over the practicality and independence that electric vehicles (EV) offer. Not that that was holding the EV onslaught back, but the fuel carrier strike just reaffirmed its inevitability and the fact that the future is closer than ever. But we are happy to report that India is ready for the future and how.

With a plethora of options across segments for both four-wheelers and two-wheelers, from Indian and international automakers, the local EV market has experienced significant growth. The market, valued at $1.45 billion in 2021, is projected to expand to $113.99 billion by 2029, at a compound annual growth rate (CAGR) of 66.52 percent from 2022 to 2029. This robust growth is indicative of the increasing demand and acceptance of EVs in India.

What's more interesting is, despite the challenges posed by the COVID-19 pandemic that left other industries reeling, electric car sales in India surged by 109 per cent from 2,814 units in 2019 to 5,905 units in 2020.

The Indian government has played a critical role in promoting the adoption of electric and hybrid vehicles through various schemes and incentives such as the FAME - II and PLI schemes. The Union Budget for 2023-24 further emphasized this commitment by allocating substantial investments for electric vehicle production and hydrogen fuel adoption. These government initiatives are in line with India's target to achieve 30 per cent electrification of the country's vehicle fleet by 2030.

HOMEGROWN CHARGE

Electric car sales registered substantial growth, with 18,142 units sold in the first half of FY 2022-23, a 268 percent increase.

Indian automaker Tata Motors has been at the forefront of this growth. And it's natural to wonder why there aren't as many budget options as luxury EVs in India.