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3 Nov, 2023 16:23

India’s EV market booming – Bloomberg

Demand for electric cars more than doubled in the first nine months of 2023, the media outlet reports
India’s EV market booming – Bloomberg

Sales of passenger electric vehicles (EVs) in India soared to 75,000 during the first nine months of the current year, more than double compared to the same period a year ago, Bloomberg reported on Friday.

Though the share of battery-powered cars in the country’s total market remains at a modest 2.4%, producers are optimistic, as nearly 86% of all EVs purchased this year came with a price tag of under $20,000.

Most of the relatively cheap models have been introduced in 2023, including the cheapest one – MG’s Comet mini car that retails for less than $10,000. Meanwhile, Tata Motors’ best-selling Tiago compact electric car, deliveries of which started early this year and which sells for $10,500, accounted for 39% of EV shipments.

Affordable small cars and compact sport utility vehicles (SUVs) dominate the shipment statistics, as seen by the news agency.

Some 69% of cars purchased in India in 2022 were priced below $15,000, while 27% were sold at less than $10,000. Combustion-engine models, such as Suzuki’s Swift and Wagon R that retail for less than $8,000, topped the ranking of the best-selling vehicles.

Automakers have swiftly realized that offering battery-powered cars at the same price may help them to secure demand from customers. Moreover, EVs became increasingly popular among ride-hailing and taxi companies due to low operating costs.

The buoyant demand has reportedly prompted local automakers to produce more EVs in the country, with nearly $5.4 billion in investments committed to set up or expand EV manufacturing facilities in India.

Pledges to produce locally have been reportedly voiced by domestic players Tata Motors and Mahindra & Mahindra, as well as Korean automakers Hyundai and Kia. Vietnamese EV startup VinFast has recently announced plans to set up an EV manufacturing facility in the country by 2026.