India’s electric vehicle (EV) market is shifting gears as top automakers roll out new strategies to boost consumer adoption. And the latest gambit by automotive players has to do with an electrification and Battery-as-a-Service (BaaS) play.
Tata Motors, the country’s largest EV maker, is enticing buyers with a combination of free charging and substantial discounts. Meanwhile, MG Motor has introduced an innovative battery rental plan, aimed at making electric cars more accessible and attractive to price-sensitive consumers. MG has big plans for EVs. The company, which already holds a 20% market share in the Indian EV sector, expects EV sales to surpass 50% of its total sales in the coming years.
It isn’t just mass-market players like TATA and MG either looking to blaze a trail. Storied luxury carmaker Mercedes-Benz also offers free charging to its EV customers for the first year of ownership, and the Stuttgart based major is hoping there will be a lot of them. With some new launches, like the highly anticipated EQG, an electric version of the iconic G-Wagon, set to launch in India by late 2024 or early 2025, hopes are high, as is consumer interest. Despite the premium price tag of Rs 3.5 crore, the EQG has already garnered 80 pre-orders according to reports.
The rapid growth of EVs in India, once the driving force behind the sector’s optimism, now faces some challenges. Although electric vehicles currently account for 2% of India’s annual car sales out of a total of 4.2 million, recent figures show a slowdown. Industry analysts point to the high upfront costs and limited charging infrastructure as key barriers to further growth. Additionally, resale concerns abound around EVs, particularly in the medium to long term.
But with Government support, that momentum could be given a shot in the arm. Addressing the Automotive Components Manufacturers Association (ACMA), Minister for Road Transport and Highways, Nitin Gadkari, expressed optimism about the future of electric mobility in the country. Gadkari predicted that within two years, the cost of EVs will align with those of petrol and diesel vehicles, making the transition even more appealing for consumers. The Minister is bullish on EVs, claiming that annual sales will touch the 1 Cr mark by 2030, and create 5 Cr jobs across the country by the turn of the decade.
Interest among consumers remain strong for EVs, particularly given their strong value proposition. But with green mobility being in a very nascent stage in India, automakers both local and global are still finding their feet and figuring out the best approach to woo Indian consumers. The next few years of the automotive space will be fascinating indeed.
