Experts said more choices in the electric PV space will only make the market grow. India's electric car market is shifting into high gear, particularly in the affordable segment, with 86% of sales concentrated in the sub-INR 20 lakh segment. With consumers increasingly choosing battery-powered SUVs over traditional hatchbacks, the electric PV sales are expected to exceed the 100,000 mark this year.
While early market leader Tata Motors is facing headwinds, upcoming launches of Suzuki e-Vitara, Mahindra BE.6e and CEV9e early next year are expected to recharge the market and boost competition.
Experts said more choices in the electric PV space will only make the market grow. They also said stricter emission penalties and the growing environmental benefits of EVs are driving automakers towards electrification.
Taking cues from China, the world's largest electric vehicle market, most car companies are exploring innovative solutions including battery-as-a-service and battery swapping stations to overcome charging infrastructure challenges.
"Battery swapping technology in China has reduced refuelling time to just five minutes, providing a promising model for the Indian market," said Ravi Bhatia, president, Jato Dynamics.
The MG Windsor EV, a recent launch, has been a key driver of growth for the company. Launched with a unique battery-as-a-service model, the Windsor EV can be purchased at INR 9.99 lakh. It separates the vehicle cost from the battery price, allowing consumers to pay for the battery based on usage at the rate of INR 3.5 per km.
"Windsor's success is beyond metros, with half of its sales coming from tier-2 and -3 cities," said Satinder Singh Bajwa, chief commercial officer, JSW MG Motor India, underscoring the growing significance of new energy vehicles to the company's revenue and market strategy. Last month, Mumbai-based automaker Mahindra & Mahindra made its first full-fledged foray into India's nascent EV market with the introduction of two pure electric models.
M&M plans to launch three to five more models based on the same vehicle architecture over the next few years. The UV major is targeting lifestyle buyers. Its target is to convert internal combustion engine (ICE) to lifestyle EVs, a senior executive said at the recent unveiling event. The maker of Thar and Scorpio SUVs is targeting total monthly sales of 10,000 units from the two new EV models.
Tata Motors though is likely to record lower EV sales this fiscal, marking a sharp reversal for the company after a 48% surge in FY24.
