More electric vehicles in India soon as automakers rush to meet needs
Tech companies are looking to revolutionize the electric vehicles industry in India. Over the years, the electric vehicle industry in the subcontinent has been slowly picking up the pace. However, with new investments and advancements in technology, there might just be an increase in the number of electric vehicles in India.
According to a report by Mordor Intelligence, the Indian electric vehicle market is expected to reach US$47 billion by 2026. Despite the impact of the COVID-19 pandemic, the Indian market is expected to grow at a faster rate thanks to government initiatives as well as new technologies.
The country is already experimenting with e-Mobility for public transport and has even deployed electric inter-city buses across some major cities. In addition, state governments are also playing an active role in the deployment of policies encouraging the usage of electric vehicles.
For instance, Kerala aims to put one million electric vehicles on the road by 2022 and 6,000 e-buses in public transport by 2025. The state of Telangana aims to have electric vehicles sales targets for 2025 to achieve 80%. This does not only include private cars but also motorcycles, scooters, and auto-rickshaws.
In the two-wheel segment, Hero Electric Vehicles is India’s market leader in two-wheelers. With about a dozen different variants, the privately held Hero Electric last year sold over 50,000 units. Other two-wheel electric vehicle manufacturers include Bajaj Auto and TVS Motor. These companies sell more than 50 different types of electric two-wheelers in India.
Electric vehicles in India to see greater adoption
Realizing the potential in the industry, Tata Motors plans to increase the momentum in the electric vehicle industry as well. The automaker will be launching several electric vehicles in India that is expected to revolutionize the entire industry.
According to Reuters, Tata Motors will be investing over US$ 2 billion in its electric vehicle business over the next five years, after raising funds from private equity firm TPG.
For Shailesh Chandra, head of Tata Motors’ passenger vehicles business, they aim to lead the electric vehicle charge in the market and work with investors to create a carbon-free world.
The move comes as Tesla, the world’s biggest electric carmaker prepares to launch its cars in India. Tesla has been lobbying with the Indian government to lower import duties on electric vehicles as well. It is also the first major fundraising by an Indian carmaker to push clean mobility when global automakers such as General Motors, Volkswagen, and Toyota Motor are spending tens of billions of dollars to speed up EV adoption and also counter China’s dominance of the sector.
Interestingly, Tata plans to launch electric cars with a larger battery pack than existing models. Most energy vehicles currently have a five to eight-year warranty on their battery. However, the current prediction is that an electric car battery will last from 10 to 20 years before they need to be replaced.
Tata’s upcoming cars could also be more exciting with several new features to assist driving. Tata will be working on the upcoming electric four-wheelers and is planning to add 10 electric vehicles to its portfolio by 2026.
India is also hoping to increase the sales of its electric vehicles up to 30% by 2030. The government has already launched several incentive schemes including one for setting up local battery manufacturing.
Despite the global concerns of battery shortage and such, the Indian motor company seems optimistic that they will be available to meet their goals, given their success in the subcontinent with their other models as well.
The only question now is, will it be enough to convince the public to switch to electric vehicles in the future.
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