As Foxconn and Tesla prepare inroads into India, here is a picture of the country's electric vehicle market.
Wednesday, October 20, 2021 | Chimniii Desk
Key Points
Foxconn, the Taiwanese technology giant that announced its foray into the electric vehicle market on Monday with the introduction of three concept vehicles, plans to build its EVs in India, Brazil, and Europe, chairman Liu Young-way stated today. Foxconn has established a goal of providing components or services for 10% of the world's electric vehicles (EVs) by 2027. India's automobile sector is currently the fifth largest in the world and is expected to surpass Japan's by 2030.According to a research by the India Brand Equity Foundation, India was the world's fifth-largest auto market in 2020, with around 3.49 million passenger and commercial cars sold. India's electric vehicle market, According to JMK Research & Analytics, overall EV sales increased to 34,316 units in September, an increase of 18.7 percent month over month and a 222 percent year over year. For the first time in history, monthly EV sales exceeded 30,000 units.
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Foxconn, the Taiwanese technology giant that announced its foray into the electric vehicle market on Monday with the introduction of three concept vehicles, plans to build its EVs in India, Brazil, and Europe, chairman Liu Young-way stated today.
Foxconn has established a goal of providing components or services for 10% of the world's electric vehicles (EVs) by 2027. India's automobile sector is currently the fifth largest in the world and is expected to surpass Japan's by 2030.
According to a research by the India Brand Equity Foundation, India was the world's fifth-largest auto market in 2020, with around 3.49 million passenger and commercial cars sold. It was the seventh-largest commercial vehicle manufacturer in 2019.
Tesla Inc., an American electric vehicle manufacturer, is also considering manufacturing its vehicles in India. Tesla India Motors and Energy Pvt. Ltd was incorporated in Bengaluru in January. Tesla's debut into India, meanwhile, is being delayed because to the hefty import charge on automobiles.
Elon Musk, Tesla's CEO, stated on Twitter in July that a local manufacturing in India was "very likely" if the firm was successful with vehicle imports, but added that the associated taxes were too high.
At the moment, cars imported as completely built units (CBUs) are subject to a customs charge of between 60% and 100%, depending on the engine size and the cost, insurance, and freight (CIF) value of less than or greater than $40,000.
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India's electric vehicle plans
India has set an audacious goal of electrifying the entire country by 2030. According to a CEEW Centre for Energy Finance (CEEW-CEF) report, the Indian electric vehicle market will be worth $206 billion by 2030 if India meets its ambitious 2030 objective.
Additionally, the government is prioritising the transition to clean mobility. Recognizing the opportunity, market leaders such as Ola Electric, Ather Energy, and Mahindra Electrics are expanding their market presence at a quick pace. Meanwhile, governments like Karnataka and Tamil Nadu are implementing investor-friendly electric vehicle rules.
India's leading EV manufacturers
If and when Foxconn and Tesla do establish manufacturing facilities in India, here is what they will face.
Ather Energy
Ather Energy relocated its $86.5 million facility from Bengaluru to Hosur in Tamil Nadu in February 2021. Ather is targeting a monthly production capacity of around 3,000 units, which will be increased to 8,000 units by 2022. The factory, which is being sponsored by the Tamil Nadu EV Policy, has a capacity of 100,000 units per year and is expandable to 500,000 units.
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Tata Motors
Tata Motors announced earlier this month that it will invest $2 billion over the next five years in its electric vehicle business, following a capital round from private equity company TPG. Tata Motors now dominates EV sales in India with its electric SUV Nexon and tiny EV Tigor, and the company expects to introduce ten more electric vehicles by 2025.
Ola Electric
Ola Electric is another important player in the electric two-wheel segment. Last year, the business announced a Rs 2,400-crore investment in Tamil Nadu to establish its first electric scooter manufacturing. Ola Electric claims that when completed, the plant will have an annual capacity of one crore units, or 15% of the world's total two-wheeler output.
Hero Electric
In India, Hero Electric has launched more than a dozen electric vehicles. The company has been a leader in the electric vehicle category, offering both two-wheelers and three-wheelers.
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Mahindra Electric
With the Reva electric car, Mahindra sparked India's EV boom. The company has expanded into other areas throughout the years, offering a range of electric vans, electric automobiles, and e-three wheelers.
India's electric vehicle market
According to JMK Research & Analytics, overall EV sales increased to 34,316 units in September, an increase of 18.7 percent month over month and a 222 percent year over year. For the first time in history, monthly EV sales exceeded 30,000 units.
Graphics Credit: Rahul Awasthi
Additionally, the survey stated that electric two-wheelers and passenger three-wheelers accounted for 92 percent of total registrations in September. These were followed by cargo three-wheelers (5%), and e-cars (3%). (4 percent ).
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Uttar Pradesh continues to see the highest number of registered EV sales, accounting for 21% of total sales in September 2021. Karnataka was 2nd with a 12% share, followed by Tamil Nadu (10%), Rajasthan (9%), Delhi (8%) and Maharashtra (7%).
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