South Korean media: "A place of contention for generals", China's electric vehicles are rising in India!
On August 31, the South Korean media "Herald Economic" published an article stating that in recent years, the Indian electric vehicle market has become a "place of contention for generals" for global electric vehicle manufacturers. In 2020, the sales of electric vehicles in India were only 5,000 units, while by 2024, this number had increased by 21 times, exceeding 100,000 units. The market size is expected to grow at an annual rate of 40%, increasing from $8.49 billion this year to $152.2 billion by 2030. Behind the rapid growth of the Indian electric vehicle market are factors such as government policy support, the construction of charging infrastructure, and the accelerated entry of foreign enterprises.
In addition to local giants such as Tata Motors, Mahindra, and Hero, international brands have also rushed to seize the market. In July, Tesla launched the Model Y at a price of $70,000, intensifying the competition in the luxury electric vehicle market with BMW, Mercedes, and Hyundai. International companies plan to launch more than 12 new models, which have advantages in technologies such as driving range and charging speed. From high-end models to mass-market models, a multi-layered competitive landscape is forming. The Indian government's willingness to support the electric vehicle industry is very firm. Under certain conditions of local production and investment, the Indian government has reduced the import tariff from 70% to 15%, and at the same time, India is strengthening its supply chain by expanding lithium-ion battery production and exempting tariffs on key raw materials.
On the other hand, Chinese companies such as BYD and Geely are continuously expanding their market penetration through their technological strength and price competitiveness. The brand MG, under SAIC Motor, has also doubled its production in India and supports the capacity of Indian enterprises through parts supply. Therefore, MG's market share is rapidly growing, while Tata Motors' market share is declining.
Therefore, price competition is extremely fierce. Compared to China, the United States, and European countries, the sales of electric vehicles in India are low, and the prices are very low, less than $20,000, so the Indian market is mainly dominated by low-price models. Additionally, the Indian market is mainly composed of two-wheelers and three-wheelers, not passenger cars.
However, despite the global electric vehicle market entering a period of reduced subsidies and slowing demand, India still shows great growth potential. The growth of the middle class, urbanization, government subsidies, and the expansion of charging infrastructure are supporting the demand for electric vehicles in India. India is gradually becoming a key region in the global electric vehicle strategy, rather than just a consumer market. In the future, India will become a "global battlefield for electric vehicles" and a market full of great opportunities.
Original: www.toutiao.com/article/1841970890798279/
Statement: This article represents the views of the author.