With more than 3 million units sold in 2020, the electric vehicle industry is poised to grow at a faster pace than traditional vehicles. Automobile manufacturers in India are looking for a headstart in the flourishing affordable EV transport sector.
Electrification of transportation is the new trend of the 21st century. It became more significant when a Chinese EV-making company – Tesla’s stock rose by 415 percent since January last year on their announcement of entering into the EV segment. Electric vehicles are not only the future of the transportation industry but they are also saving lives. The biggest root cause of climate imbalance or increased pollution in the United States is due to heavy and rapid transportation. Emissions transmitted from these vehicles are not only harmful to the climate but to human health as well. Bronchitis, Asthma, and cancer are a few of the diseases that stem from being exposed to pollution.
Electric vehicles have a smaller carbon footprint than the ones which run on petrol or diesel. Even the electricity is sourced from power grids where natural wastage is minimum. Running electric or hybrid cars on the grid in any state has lower greenhouse gas emissions than gasoline-powered cars, as revealed in a study by experts at the Union of Concerned Scientists.
Watch: India’s Electric Vehicle strategy to take on China
Say hello to Hero’s International market:
Hero Motor Company (HMC) recently announced their plans to extend their business overseas. Seeing the exponential growth in the European market, the company will be setting its Headquarters in London. Boosting the business, Hero International is working towards organizing its offshores business under one umbrella in the European market.You will find more infographics at Statista
As per Global EV Outlook 2020, the sales of electric cars reached 2.1 million globally in 2019 as opposed to 2018. Looking at the broader prospect, China still remains the world’s largest EV market with 2.3 million EV’s in current use. Whereas, usage of such cars in US and UK is still far behind and touching 1.1 and 1.7 million users only.
Total EV sales are estimated to grow from 2.5 million in 2020 to 11.2 million in 2025, reaching 31.1 million by 2030.
This pattern shows how EVs would reach near to 32 percent of the total market share for new car sales. Though, still in a difficult phase, the majority of the sales will depend on fluctuation in oil prices, the infrastructure of electric stations, and speed of Covid-19 recovery.You will find more infographics at Statista
Worldwide, China is leading in the production and sales as Tesla, opened its giga-factory in Shanghai which led to cost reduction in manufacturing and shipping. A prospective competitor to Tesla, NIO is gaining traction in the industry and it can be seen in its performance in the stock market where it jumped 10x within a month in January this year.You will find more infographics at Statista
Indian market of Electric vehicles:
Changing the mindset and shifting the focus towards sustainable and eco-friendly transportation will be a handful of the task to be done in India. However, According to a McKinsey & Company report, the electric vehicle adoption rate is less than 1 percent. Most electric vehicles can be seen in two-wheelers but even their success ratio was not very high. The government’s target of 30% electric vehicle adoption by 2030 is projected to be powered primarily by electrification of two-wheeler, three-wheeler, and commercial vehicles in India.
Mahindra has entered into this space and viewing it as a very profitable market to attract fleet operators, public transporters, and mobility platforms.