India's Electric Vehicle Market To Be Valued At Over $78 Billion By FY2027: Study

According to a recent study undertaken by Research and Markets, Indian's electric vehicle market will be valued at over $78 billion by the Financial Year (FY) 2027. The research report says that in FY2020-21 the country's electric vehicle market was valued at over $10 billion, and it's projected to grow at a CAGR of 41.02 per cent during the forecast period. The report states, that continuous advancement in technology to upgrade the existing infrastructure and new inventions in the automotive industry are fuelling the demand for the electric car market.

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Indian's electric vehicle market will be valued at over $78 billion by the Financial Year (FY) 2027

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On the other hand, the Government of India's push to achieve electrification is also helping the cause. The government's efforts in setting up charging infrastructure coupled with the production linked incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries, for an estimated budget of Rs. 18,100 crore, are expected to help accelerate the growth of the market. In addition to that, rising environmental concerns are aiding the growth in demand for electric cars, while the burden of oil imports, leading to rising fuel prices are aiding in changing the preference of consumers to adopt green energy fuels. All these factors are aiding in creating lucrative opportunities for electric cars market growth.

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The burden of oil imports, leading to rising fuel prices are aiding in changing the preference of consumers to adopt green energy fuels

Right now, the Indian electric vehicle market is segmented into different vehicle types, drivetrain, battery capacity, regional distribution, and company. Based on vehicle type alone, the market is further segmented into the hatchback, sedan, and SUV and MPV. Among all, the report also says that the hatchback segment is expected to witness the fastest growth due to the growing affordability of consumers. Furthermore, the presence of battery manufacturing companies is reducing the cost of batteries used in electric cars thereby lowering the cost to buy automobiles.

The researchers also found that the demand for electric cars is extremely high in the southern region of India, mainly because of the huge population, better employment opportunities and high standard of living. The report adds that southern India is the major contributor to the overall demand for electric cars in the country, and with the rising infrastructural developments and employment opportunities, the demand for electric cars is further anticipated to grow in the region.

The report adds that southern India is the major contributor to the overall demand for electric cars in the country

In fact, the region's market is anticipated to grow over the forecast period as well, owing to the expanding developments in electric cars which would support the electric car market. In 2017 southern India alone accounted for over 36 per cent of total EV volume share, followed by North and other regions accounting for the rest.

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Right now, the major players operating in the Indian electric car market are - Tata Motors, MG Motors India, Hyundai Motor Company, Mahindra Electric Mobility Limited, among other smaller payers. In the luxury car space, we have brands like - Mercedes-Benz India, Audi India, and Jaguar India, and they will be soon joined by battery electric vehicles from brands like BMW India and Volvo Cars India.

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