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Market Research Report

India Electric Vehicle (EV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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India Electric Vehicle (EV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
Published: May 13, 2021 Content info: 70 Pages
Description

The India Electric Vehicle Market was valued at USD 5 billion in 2020 and is expected to reach USD 47 billion by 2026 registering a CAGR of above 44% during the forecast period (2021 - 2026).

The India Electric Vehicle Market has been impacted by the outbreak of COVID-19 pandemic due to supply chain disruptions and halt of manufacturing units due to continuous lockdowns and travel restrictions across the county. However, as electric vehicle (EV) market is still in its nascent stage in India. It is expected to grow at a much faster rate during the forecast period due to various government initiatives and policies.

E-Commerce companies (Amazon, for example) are launching initiatives to use e-Mobility for last-mile deliveries to reduce carbon footprint. India is experimenting with e-Mobility for public transport and has deployed electric inter-city buses across some of the major cities. In addition, state governments are also playing active role in deployment of policies encouraging EV. For instance,

  • Kerala aims to put one million EV units on the road by 2022 and 6,000 e-buses in public transport by 2025.
  • Telangana aims to have EV sales targets for 2025 to achieve 80% 2- and 3-wheelers (motorcycles, scooters, auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40% buses, 30% private cars, 15% electrification of all vehicles.

The EV market in India has gained significant momentum after the implementation of FAME India scheme with its aim of shifting towards e-mobility in wake of growing international policy commitments and environmental challenges. Moreover, India offers the world's largest untapped market, especially in the Electric two-wheeler segment and as 100 percent foreign direct investment is allowed in this sector under the automatic route market is expected to gain momentum during forecast period.

Key Market Trends

Growing Adoption Of Electric Buses During Forecast Period

India is the second most populated country in the world after China, and just like China, which has the largest electric bus fleet in the world, India is also pushing hard for the electrification of buses. Many state governments have already started the procurement of electric buses from Chinese and local electric bus manufacturers.

With growing need for controlling GHG (Greenhouse gases) emissions emitted by vehicles, the government is encouraging the use of electric powered vehicles across various states, which is boosting the demand for electric buses in India. The market is being driven by factors such as increase in domestic manufacturing, rapid urbanization, and rise in environmental awareness. For instance,

  • In February 2020, Union transport minister inaugurated India's first inter-city electric bus service, these buses are manufactured by Mitra Mobility Solution which has the range of 300 km on a full charge.

Many local bus manufacturers are in collaboration with some Chinese manufacturers are trying to catch the rising demand of the electric buses in India. For Instance,

  • In 2019, Foton PMI announced that it was planning to invest around INR 500 crore on a joint venture with Beiqi Foton Motor Co. of China to manufacture electric buses in India. The company has already given five electric buses to one of the airlines for internal operations.

Electric Two Wheeler Vehicles Likely To Have Optimistic Growth

With transportation still being a challenge in India, a lot of people in these segments look forwards to the 2-Wheeler Industry in India. As a result of the surging pollution, the national government has launched stringent policies to curb vehicular emissions. In particular, the jump from Bharat Stage V (BSV) to BSVI emission standards is expected to benefit the Indian electric scooter and motorcycle market, by raising the prices of petrol-driven two-wheelers by 7­-15%. From 1st April 2020 onward, automakers are only allowed to sell BSVI-compliant vehicles in the nation, which is driving the push toward electric variants.

For extracting the maximum revenue from the rapidly growing Indian electric scooter and motorcycle market, original equipment manufacturers (OEMs) are expanding their facilities. For instance,

  • In January 2020, Ather Energy Pvt. Ltd. announced intentions to build a 400,000-square-foot factory in Hosur, Tamil Nadu, which would have an annual output of 1 lakh units. Currently, the company operates one manufacturing plant in Bengaluru, which has a capacity of 25,000 units. The idea of the company behind an additional facility is meeting the rising demand for electric two-wheelers in India.
  • In the same vein, Okinawa AutoTech Pvt. Ltd. invested 28.4 million (INR 200 crore) for its second manufacturing plant in May 2019. To be developed for electric two-wheeler vehicles in Rajasthan and planned to be commissioned in early 2020-21, the manufacturing plant will have an annual output of 10 lakh units.

Furthermore, the availability of a considerable number of electric two wheeler models, their low cost, as well as their availability as a substitute for conventional fuel-based vehicles and these are fueling the demand in the India Electric vehicle market.

Competitive Landscape

The India EV market is consolidated due to presence of major players active in the market owing to cheap and readily available manpower. However, established players in the market are introducing their new model's, product launches to gain competitive edge over other players. For instance,

  • In January 2020, Morris Garages Motor India launched the d ZS EV, which is the first electric internet SUV in India, the car has a driving range of 340 km on a full charge. The ZS EV vehicle has been awarded five stars at the Euro NCAP crash tests.
  • In 2019, Tata Motors announced its electric vehicle technology ZIPTRON, which will power all future Tata electric cars. This technology consists of a highly efficient permanent magnet AC motor, providing excellent performance on demand. It will also offer a dust and waterproof battery system meeting IP67 standards.

The startups are expanding their presence by raising funds from investors, tapping in new and unexplored cities. Companies are investing a tremendous amount on R&D and launching new models to mark their presence in the market.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 69655

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

  • 4.1 Market Driver
  • 4.2 Market Restraint
  • 4.3 Industry Attractiveness-Porter's Five Force Analysis
    • 4.3.1 Bargaining power of suppliers
    • 4.3.2 Bargaining Power of Consumers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION

  • 5.1 By Vehicle Type
    • 5.1.1 Passenger Cars
    • 5.1.2 Commercial Vehicles
    • 5.1.3 Two and Three-wheelers
  • 5.2 By Power Source Type
    • 5.2.1 Battery Electric Vehicle
    • 5.2.2 Plug-in Hybrid Electric Vehicle
    • 5.2.3 Hybrid Electric Vehicle

6 COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles *
    • 6.2.1 Tata Motors
    • 6.2.2 Bajaj Auto Corp
    • 6.2.3 Mahindra & Mahindra Limited
    • 6.2.4 MG Motor India
    • 6.2.5 Hyundai Motor India
    • 6.2.6 Olectra Greentech Ltd
    • 6.2.7 JBM Auto Limited
    • 6.2.8 Hero Electric
    • 6.2.9 Ampere

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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