Market Trends of india electric car Industry
This section covers the major market trends shaping the India Electric Car Market according to our research experts:
Hatchback is the largest segment by Sub Body Type.
- The Indian electric car market has been experiencing fluctuating growth over the last decade due to a lack of consumer awareness, flip-flop regulatory and incentive policies, and market visibility. The market is still in a nascent stage, with electric car sales penetration of less than 1% in the overall passenger car industry.
- However, the Government of India is still working on policies to promote electric vehicles. The government has targeted to achieve 30% vehicle electrification in the country by 2030. Recently, the second phase of the FAME India scheme was announced for all categories of EVs, including cars. An investment of around USD 776.5 million is allocated to increase sales of electric vehicles in the country.
- Besides the Make in India scheme encourages the manufacturing of electric cars in the country through policies that support 100% foreign direct investment (FDI) and offer financial support for research and manufacturing. These policies are expected to encourage the local production of electric vehicles and help the government bring down the prices of these vehicles to support their rapid adoption in the country.
- Due to such initiatives, many electric car manufacturers have made their electric car platforms ready and are all set to launch their products. Over the last two years, electric car manufacturers have spent over USD 1 billion in investments in R&D for the design and development of electric vehicles. These investments helped manufacturers not only with the high upfront capital required in the initial stages of assembly and supply chain setup but also in keeping the cost of electric two-wheeler low while boosting the quality of products.
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