Ahead of Tesla’s entry, India’s EV makers slash prices to boost demand in world’s third-largest automobiles market
- The move comes just as Tesla is expected to enter India, with speculation that the US carmaker will launch a low-cost car in the world’s third-largest vehicle market
- EVs currently account for around 5 per cent of India’s automobile market, but that figure is projected to grow to 40 per cent by 2030
EVs currently account for around 5 per cent of India’s automobile market, but that figure is projected to grow to 40 per cent by 2030, at which point EV revenues will reach US$100 billion annually, according to a report by US consultancy giant Bain & Co published in December.
Electric car penetration, which trails two- and three-wheelers, is likely to hit about 15-20 per cent, says Mihir Sampat, a Mumbai-based partner at Bain & Co.
Unlike other markets where EV sales have slowed, India’s appears poised to take off.
“India is late in terms of penetration levels [of EVs], but now we can say that the ball has started rolling,” said Puneet Gupta, director of mobility at S&P Global.
India has expanded a production-linked incentive (PLI) programme for the manufacture of EVs, which includes tax breaks, cheaper rentals and discounted electricity charges that are tied to production volume and greater localisation.