Explosive growth in production and sales of electric vehicles is expected in the next region of the world in the next few years. According to market research specialists at Mordor Intelligence, India is the next country to actively tackle pollution and reduce its dependence on oil. In the coming years, the market for electric vehicles will more than triple.
According to The Korea TimesAccording to experts, the country’s electric transport market will grow from US$5.47 billion in 2020 to US$17 billion in 2026. The Indian government expects that by 2030 around 30% of private transport will be electric. In the long term, the world’s second most populous country promises to be a very attractive market for manufacturers of electric vehicles and other electric vehicles such as scooters.
Manufacturers are already trying to conquer promising niches here. In particular, Hyundai Motor is known to be taking advantage of government incentives to build an electric vehicle battery manufacturing factory together with local companies. It is known that the government intends to support the construction of a plant that will produce batteries with a total capacity of 50 GWh over the next five years. According to some reports, the authorities expect South Korean companies to participate in its construction.
Hyundai Motor is preparing to “reserve” a spot in the Indian electric vehicle market. Last month, the automaker announced plans to invest more than $500 million in development to bring six new electric models to the local market by 2028.
Mercedes-Benz said it will produce EQS-series cars here – electric versions of the flagship S-class sedans, sales of which will start as early as Q4 this year. The German automaker becomes the first world-class automaker to begin assembling electric vehicles directly in India. Also, the company could be the first to introduce an electric model in the Indian market.
Tesla is also considering entering the Indian market, but so far the company has not been able to reach an agreement with the local government – it wants to receive benefits as the 100% tariff is too high. Tesla will first try to import cars and later organize local production if there is demand. Lowering tariffs is a key goal for the company, otherwise it will be difficult to compete with cheap models from local automakers. The Indian government, in turn, is pushing Tesla to build a factory.
In the meantime, the country’s charging infrastructure needs to be significantly improved if the goal of selling 30% of the total number of electric vehicles by 2030 is really to be achieved. Another obstacle to the transition to electric vehicles is high battery prices – they are high because, in the case of India, the vast majority of products are imported from abroad. It is crucial that the authorities organize production in the country themselves.