As the competition in the EV segment is increasing, will it prove to be good news for customers? Find out in today’s article!
Owning an electric passenger vehicle is rewarding for the environment and cost-efficient for the user. But, the premium pricing is a constraint.
As the competition in the sector is increasing, will it prove to be good news for customers?
Let’s find out.
The electric passenger vehicle segment is soaring. While existing players are developing new models, global players are keen to enter the Indian EV space.
The electric passenger vehicle giant Tata Motors recently launched an affordable Tata Tiago EV, which saw an extremely positive customer response. They received a whopping 10,000 bookings in a day.
Additionally, Warren Buffet-backed Chinese electric carmaker BYD launched its first electric sport-utility vehicle (SUV) in India. Similarly, many companies will soon develop new models, leading to cut-throat competition in the electric passenger vehicle space.
Overview of the Electric Passenger Vehicle Space
In the first six months of 2022, electric passenger vehicles accounted for only about 1.17% of India’s overall passenger vehicle production.
According to the Economic Times, there were 26 EV models in India as of September 9th, 2022, priced above Rs 50 lakhs. This indicates that electric passenger vehicles are out of reach for the general public. But Tata Motors has so far succeeded in gaining the majority of market share by coming up with affordable models of electric passenger vehicles like Nexon and Tigor.
After Tata Motors, Mahindra & Mahindra and MG Motors are the following big names in the electric passenger vehicle market.
Upcoming Competition in the Electric Passenger Space
Tata Motors has lowered the hurdle after launching its affordable electric passenger vehicles. Since then, Maruti Suzuki, Mahindra & Mahindra, Hyundai and Kia, and significant Chinese BYD have lined up new launches. If these companies gain a considerable market share, it will be tough for Tata Motors to maintain the lead.
The race for electric cars has just begun. There is so much more to it. As the competition heats up, companies will face the challenge of competitive pricing, which will benefit customers.
According to Ravi Bhatia, President of JATO Dynamics, ‘Currently, the cost of the battery alone accounts for up to 33%-40% of the vehicle cost. But falling battery prices will reduce costs by 2030, and better-charging infrastructure will boost the required.