India’s largest car show eyes untapped electric vehicle demand

India recently overtook Japan as the world’s third largest auto market, but of the 4.3 million vehicles sold there last year, only about 1 per cent were electric

Price of an EV in the country costs about 50 per cent more than gasoline models, but it is narrowing as manufacturers start sourcing more parts locally

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Manufacturers at the India Auto Expo will highlight their electric vehicles. Photo: Bloomberg

Published: 7:30pm, 13 Jan 2023

India’s largest motor show opened to the public on Friday on the outskirts of New Delhi, with manufacturers of electric vehicles (EV) expected to take centre stage, as they vie for an untapped piece of what is now the world’s third largest auto market.

Industry-wide sales in the country are estimated to have grown 23 per cent to more than 4.3 million vehicles in 2022, but just a meagre 1 per cent of those purchases were for EVs.

“India is at the beginning of the electrification transition, [and] it’s too early to say that it’s the inflection point. But the initial impact is positive,” said Suraj Ghosh, director mobility at S&P Global.

Sales of electric vehicles are likely to grow from 125,000 to 150,000 in 2023 as people increasingly explore cheaper options to fossil fuel powered cars, according to Ghosh.

Oil prices surged to US$139 a barrel in March last year after Russia invaded Ukraine, but have since eased to around US$80 a barrel. China’s reopening is likely to firm up oil prices again from the second quarter of this year, analysts say.

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