India's Electric Vehicle Market Is Gearing Up For Fast Lanes As Several Companies Rush Into Segment

Summary

India's electric vehicle (EV) market is rapidly expanding, with electric two-wheeler sales surging 464% and four-wheeler sales up 257% in FY 2021-22. Tata Motors, which controls 85% of the market, is capitalizing on this growth with its new Curve SUV concept, set to launch as an EV in two years. The Indian EV market spans from affordable models like Tata's Nexon to luxury options like Mercedes-Benz and Porsche. Tesla's anticipated launch in India is also expected to boost the market, as local production and export obligations are enforced.

Takeaways

• ⚡ India's electric vehicle market is rapidly expanding, with a significant increase in electric two-wheeler and four-wheeler sales in 2021-22.
• 🚗 Tata Motors dominates India's electric vehicle market, controlling 85% of the market share.
• 🚙 Tata Motors unveiled the Curve concept SUV, which will launch as an electric vehicle in two years, followed by petrol and diesel versions.
• 🔋 Tata already has two electric models in the market and is preparing to launch a third, the Tiago Electric, soon.
• 📈 Electric two-wheeler sales in India surged by 464% from 2021 to 2022, while electric four-wheeler sales increased by 257%.
• 💰 The EV market includes various price segments, from the Mahindra e-Verito (under ₹10 lakh) to luxury brands like Mercedes-Benz, Audi, and Porsche.
• 🌱 Maruti Suzuki plans to invest ₹10,440 crore in electric vehicle manufacturing in India, starting production by 2025.
• 🚀 Tesla is expected to enter the Indian market soon, with local production and export obligations set by the government.
• 🏎️ The luxury EV market in India features high-end models like the Porsche Taycan, which is the most expensive electric vehicle in the country at ₹2 crore.
• 📉 The stock market saw declines, with Nifty falling by 0.8% and Sensex dropping by 566 points, largely due to weak global cues and U.S. Fed commentary.

Q & A

How has the electric vehicle market in India grown in recent years?

Electric two-wheeler sales in India increased nearly five times in 2021-22, and electric four-wheeler sales were up two and a half times.

What is Tata Motors' strategy to capitalize on the electric vehicle market boom in India?

Tata Motors, India's leading electric vehicle manufacturer, is seeking to tap into the market with the Curve concept, an electric coupe-style SUV, and already controls 85% of the market share.

What is the timeline for the launch of the Tata Motors' Curve electric vehicle?

The Curve will first be launched as an electric vehicle in two years, with petrol and diesel models to follow later.

How does the current electric vehicle market in India compare in terms of price segments?

The market includes the Mahindra e-Verito priced under 10 lakh rupees, the Tata Tigor EVie and Tata Nexon in the under 20 lakh rupee segment, and the premium segment with models like Hyundai Kona, MG ZS, and Mini Cooper SE. The ultra-luxury EV market starts with the Mercedes-Benz EQC priced at one crore rupees, and the most expensive EV in India is the Porsche Taycan at two crore rupees.

Which notable personalities have shown interest in electric vehicles in India?

Madhuri Dixit and her husband have shown interest in electric vehicles, with her husband expressing satisfaction with the charging infrastructure and the vehicle itself at a reasonable price.

What is Maruti Suzuki's plan regarding electric vehicle production in India?

Maruti Suzuki, the largest car manufacturer in India, announced a 10,440 crore rupee investment to start manufacturing electric vehicles by 2025.

How does the Indian government's stance on local production and export obligations affect Tesla's potential launch in India?

The Indian government has made it clear that Tesla will have to meet local production and export obligations if it wants any reduction in import duties, which will impact Tesla's strategy for launching in India.

What is the current state of the Indian stock market as mentioned in the script?

The Indian stock market's benchmark indices inched lower for the second consecutive session due to weak global cues and hawkish commentary from the U.S. Fed, with Nifty ending lower by 0.8 at 17,807 levels.

Which stocks were among the top losers in the Indian stock market on the day the script was recorded?

HDFC Bank, HDFC, HDFC Life, HCL, and Tech Mahindra were among the top 50 losers on the day the script was recorded.

How did the broader markets perform in contrast to the benchmark indices?

The broader markets outperformed for the second day in a row, ending higher in the trading session, in contrast to the benchmark indices which settled around the day's lows.