Analysis of Electric Vehicle (EV) in India – EQ Mag Pro
Our motivation to write this analysis on EV in India has been on two folds. We have observed that the rate of petrol and diesel, specifically in India has had a steep rise. Specifically, it is noticed that their prices have almost doubled during this pandemic period. Also, with the present conflict of the war situation between Russia and Ukraine might further have a diverse impact on fuel prices.
According to the World Bank, the transportation sector accounts for over 64% of worldwide oil consumption and 23% of energy-related CO2 emissions. The necessity for an alternate technology with similar output characteristics has grown as a result of the high emissions number. Electric vehicles, sometimes known as EV, are currently the most viable and popular succedent. Electric vehicles were originally presented in the 19th century, but they remained unpopular due to the ease and comfort of internal combustion engines (ICE).
However, the move from internal combustion engines to electric vehicles has been difficult. According to the IEA’s (International Energy Agency) sustainable development scenario, it is 30%. (excluding two-wheelers). At the moment (2020), the global market share is 2.6 per cent (estimated 3 per cent at the end of 2020).
Review of Existing literature
The two most important aspects of automotive development in the globe are energy conservation and environmental management. These two requirements are addressed by electric vehicles, which provide a clean and green atmosphere [1].
EVs have a strong chance of altering the transportation sector’s future, reducing global warming caused by traditional vehicle motors that rely on dwindling fossil fuels [2].
Between 2013 and 2018, the global supply of electric passenger vehicles increased at a breakneck speed, surpassing 5 million in 2018, a 63 percent increase over the previous year [3].
The rise of Internal Combustion Engine technology will continue to be in demand if we examine the development, execution of government regulations, purchasing concerns of Indian people, and their responses to new technology. However, due to the high cost of hybrid fuels, their use will be restricted [4].
Evolution
Before Independence, India did not have an automobile industry in the traditional sense. Only the imported parts were used for assembly. In 1928, General Motors (India) Ltd. opened a factory in Mumbai to assemble trucks and vehicles. Then in 1930, Ford Motor Co. (India) Ltd. began assembling automobiles and trucks in Chennai, and in 1931, in Mumbai. With the foundation of Premier Automobiles Ltd. in Kurla (Mumbai) in 1947 and Hindustan Motors Ltd. in Uttarpara (Kolkata) in 1948, the industry began to take off.
Indian Market
The Indian Electric Vehicle Market was valued at USD 5 billion in 2020, and it is expected to increase to USD 47 billion by 2026, with a CAGR of more than 44%. (2021-2026).
As a consequence of continued lockdowns and travel restrictions across the nation, the COVID-19 outbreak has had an impact on the Indian electric car sector, creating supply chain disruptions and the shutdown of production plants. The electric vehicle (EV) industry in India, on the other hand, is still in its infancy. It is expected to grow at a much faster rate throughout the projected period as a result of many government programmes and initiatives.
Government Initiatives
In light of the aforementioned factors, the Indian government has taken action and declared the National Mission for Electric Mobility (NMEM 2020). It’s its two intertwined main goals.
- National Energy Survey
- Growth of domestic manufacturing capabilities in the full range of electric vehicle technologies.
EV30@30 Campaign
The EV30@30 Campaign was introduced at the 2017 CEM (Clean Energy Ministerial) summit to encourage the adoption of electric vehicles. It sets a collective aspirational aim for all signatory countries to achieve a 30 per cent sales share for EVs (excluding two/three-wheelers) by 2030. This is the benchmark against which EVI members’ progress will be judged. The initiative has been approved by 14 countries namely Canada, Chile, China, Finland, France, Germany, India, Japan, Mexico, the Netherlands, Norway, Portugal, Sweden, and the United Kingdom.
Drive to Zero campaign
The Global Commercial Vehicle Drive to Zero Campaign, which is part of the EVI, was introduced at the 2020 CEM summit. The campaign, which is run by CALSTART, a no-profit organization dedicated to clean transportation, intends to bring governments and key industry stakeholders together to develop laws, programmes, and actions that will promote the fast manufacture and deployment of zero-emission commercial cars. More than 100 commitment partners have joined Drive to Zero, including nine national governments (as of April 2020) as well as major state, provincial, and regional governments and agencies from around the world.
Ola Scooter
CEO of Ola Electric, Bhavish Aggarwal announced that he is going to launch an electric scooter in the Indian market. Ola Electric scooters will be available in ten different colours, and the company may opt for a direct-to-consumer sales strategy, which would eliminate the need to build and maintain a dedicated dealer network.
In an attempt to break the budget barrier for electric two-wheelers in value-conscious India, Ola Electric Mobility Pvt Ltd priced its electric scooter at 99,999 rupees. According to the corporation, the final price will vary depending on the incentives granted by each state government. Deliveries will begin in over 1,000 cities in October, with exports to Asia, Latin America, and Europe to follow in the coming months.
Direct sales
Unlike other automakers, Tesla sells directly to customers instead than via franchised dealerships. It has built a global network of company-owned showrooms and galleries, the majority of which are in major global cities.
Tesla plans to launch in India by the end of the first quarter of the fiscal year 2021-22. Tesla India Motors and Energy Private Limited has already been registered, with its headquarters in Bengaluru, Karnataka. The company is now looking for locations in three major cities — New Delhi, Mumbai, and Bengaluru – to open showrooms and service centres. Each outlet will be between 20,000 and 30,000 square feet in size [5].
Market Segmentation of an automotive market
Figure 1 and Figure 2 are examples of consumer segmentation of the UK automotive market, which is quite elaborated by Deloitte [6]. This can be used as a framework in the Indian context while segmenting the marketing in India and will help the companies to create homogenous groups from this UK market.
This analysis will help consumers to realize that there is an alternative to the steep rise in prices of petrol and diesel-run vehicles and can help them to adopt electric vehicles in India. This will also help curb the pollution-related issues in various cities in our country and bring a more eco-friendly environment to India.
Source: marketexpress
