Electric Vehicles are the New Fad in India and Here's How Automakers are Gearing Up for it
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On his maiden visit to India, Uber CEO Dara Khosrowshahi spoke about the possibility of flying cars while also vigorously pushing for electric vehicles in the near future. India has been gearing up to manufacture electric vehicles and see the same take over the Indian roads.
The Government of India has plans to make a major shift to electric vehicles by 2030. While the government is encouraging the presence of electric vehicles, it has also put a stay on any policy regarding the battery-powered cars.
However, it’s not going to be an easy run. Along with the manufacturing of these vehicles, India also needs to ready the infrastructure to facilitate the growth of EVs (charging stations for the cars) while also creating a supply chain network for the same.
Here’s a look at the analysis done by Ernst & Young on how the Indian market is going to adapt electric vehicles.
Automakers in India, some of whom have already been in the market with electric vehicles, are revving up their manufacturing of EVs to support the government’s plans. Entrepreneur India takes a look at how different car manufacturers are toying around with the concept of electric vehicles.
Leading the Segment
Mahindra and Mahindra has been the first EV manufacturer in India and recently, the group declared that they will be pumping in a fresh investment of INR 900 crore for electric vehicle over the next vehicles. The group already has an installed capacity of upto 5,000 units in a month; they are additionally planning to add the supply of electric car parts into their agenda. Mahindra already has cars e20 Plus and eVerito in the market.
Mahindra Group has also invested INR 176 crore in Zoomcar India, India’s leading self-drive shared mobility company, which will enable the company to further its objectives in electric vehicles. Zoomcar on the other hand, has set a target to bring about 12,500 electric vehicles on Indian roads by 2020.
Offering Tough Competition
At the Auto Expo 2018, Tata took centre stage to showcase its six electric cars, with the Tiago electric hatchback and Tigor Electric Sedan being the most attractive ones at the show. Tata along with Mahindra won the tender to supply 10,000 electric cars to The Energy Efficiency Services Ltd (EESL). The Tata Neo which is said to be an electrified version of the Nano is also expected to hit the roads soon.
Others in the Segment
Many other automakers are vying to take up the electric vehicle segment in India. While South Korean carmaker Hyundai is gearing up to launch an electric vehicle in India by 2019, having also announced investment plans worth $1 Bn in the Indian market. If it does manage to do so, Hyundai will be able to beat Maruti Suzuki which has similar plans for 2020.
The Indian market has also caught the attention of international players with even Tonino Lamborghini Group tying up with Pune-based Kinetic Group to produce electric golf carts. The partnership has also sparked rumours about both the companies looking at manufacturing small electric cars and two-wheelers.
Start-ups Too Cause a Stir
If there’s anything trending and rising in the markets, start-ups can’t be too far behind. With Uber and Ola turning to electric vehicles as taxis, they are also tying up with other start-ups and manufacturers in the country. Ola is partnering with Tata Motors to launch electric vehicles. Meanwhile, start-ups like Ather Energy, Gayam Motor Works, SmartE etc. are also marking out a space for themselves in the Indian electric automobile market. Launched in 2015, SmartE has already served over 6 million commuters and has registered 30X growth in two years by collaborating and signing several successful MoUs with semi-public and public sector bodies such as Delhi Metro, Rapid Metro Gurgaon, Haryana State Industrial and Institutional Development Corporation.
The GVMC (Greater Visakhapatnam Municipal Corporation) has also earned the distinction of becoming India’s first municipal corporation to deploy mass electric two-wheeler mobility system by tying up with Gayam Motor Works.