Electric Vehicle Market, India, 2024-2031

Manufacturing Localization, Innovation, and Economies of Scale will Drive Transformational Growth in the Next 2-5 Years

The adoption of electric four-wheelers in India is growing gradually, making it a major market for global companies. The growth of the electric vehicle (EV) market in the country is predominantly driven by government initiatives and incentives, mainly focusing on manufacturing localization, supply chain security, and export competitiveness, as well as environmental awareness. To keep up with the growing demand, global and domestic companies are on the verge of launching new EV models in the Indian market, which will not only open significant opportunities for charging infrastructure providers and battery technology companies but also pave the way for innovative financing business models, enhancing local EV component manufacturing capability and encouraging private and public companies to electrify their fleets; for example, last-mile delivery service companies shifting to EVs will see a significant spike.

This study covers the following topics:

• Industry trends impacting the Indian EV market
• EV adoption by regions/states
• EV sales contributions by primary OEMs
• OEMs' production infrastructure, investments, and market development approach
• Future outlook for the Indian EV market

The Impact of the Top 3 Strategic Imperatives on the Indian EV Market

Competitive Intensity

Transformative Megatrends

Industry Convergence

Why

• Presently, domestic and offshore OEM brands dominate the Indian electric PV market by securing the top 2 positions in the sales chart.
• These OEMs primarily focus on compact SUVs and hatchbacks to attract urban consumers in India's metropolitan areas.

Frost Perspective

• India's EV industry is poised for heightened competition in the coming years as more OEMs enter the market.
• Notably, the entry of established companies such as Maruti, backed by a vast customer base and strong scalability, will not only boost EV sales but also enhance consumer confidence in EVs. Maruti is expected to launch at least 4 EVs in India over the next 5 years.

Why

• As major Indian cities such as Delhi, Bengaluru, and Mumbai struggle with severe air quality issues, the electrification of urban mobility has become a crucial initiative to successfully tackle pollution challenges.

Frost Perspective

• Alongside consumers adopting EVs due to advantages related to operating and maintenance costs, the transition of fleet owners to EVs will significantly contribute to addressing air quality issues in major cities.
• Nevertheless, chasing infrastructure expansion by public and private networks will play a crucial role in realizing change in urban mobility.

Why

• Indian companies are collaborating with global technology and battery firms; for example, market leader Tata is partnering with Renesas (a Japanese chip maker) to develop an EV ecosystem in India with a focus on semiconductor solutions and EV-specific technology.

Frost Perspective

• These global partnerships, along with local production investments, reduce dependency on imports and lower production costs.
• Apart from this, these alliances combine international technology and investment with local market understanding and policy incentives to create a high-impact model for scaling EV adoption.

Competitive Environment

• Number of Competitors the Study Considers
• 14 (Tata Motors, JSW MG Motors India, Mahindra & Mahindra, BYD India, PCA India (Citroen), BMW India, Mercedes-Benz, Hyundai Motor India, Volvo Auto India, Kia India, Audi, Porsche, Rolls-Royce, JLR India)

Competitive Factors

• EV unit sales

Top 5 Competitors

• Tata Motors, JSW MG Motors India, Mahindra & Mahindra, BYD India, PCA India (Citroen)

Market Share of the Top 3 OEMs

• 91.1% (Tata Motors, JSW MG Motors India, Mahindra & Mahindra)

Other Notable Competitors

• BMW India, Mercedes-Benz, Hyundai Motor India, Volvo Auto India, Kia India

Scope

Market Analysis

• Comprehensive evaluation of market trends.

Competitive Landscape

• Overview of key players in the Electric Vehicle Market, India.

Regulatory Framework

• Insights on policies affecting the electric vehicle sector.

Consumer Insights

• Understanding consumer behavior and adoption trends.

Technological Advancements

• Examination of innovations driving the market forward.