What Is The Size Of India’s Electric Vehicle Market
Diesel and petrol nowadays have become burning topics for every strata of society, from richest to poorest people have fuel as a universal subject to discuss. But gradually it seems that we will overcome to this common issue in the coming years apparently by 2027. As India's electric car market, which was valued at over $10 billion in FY2021, is projected to grow at a Compound Annual Growth Rate (CAGR) of 41.02 percent, to be valued at $78.19 billion by FY2027.
The constant progress in technology to upgrade the existing infrastructure and new inventions in the automotive industry are fuelling the demand for the electric car market.
Saving environment is a big deal nowadays and this is a major reason of demand in electric vehicle. In addition to that the burden of oil imports, leading to rising fuel prices are aiding in changing the consumers’ preference to adopt green energy fuels. All these major factors are creating lucrative opportunities for electric cars market growth.
The demand for electric cars is extremely high in the southern region of India, essentially because of the huge population, better employment opportunities and high standard of living. Further the report says that southern India is the major contributor to the overall demand for electric cars in the country, and with the intensifying infrastructural developments and employment opportunities, the demand for electric cars is further anticipated to grow in the region. If we look back, 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.
Currently, 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.
These are the basic reasons, why Electric Vehicle (EV) is opted over its diesel and petrol counterpart?
1. No Gas Required
Electric cars are totally charged by the electricity. Driving fuel-based cars are very expensive.
2. More Convenient
The electric vehicle is easy to recharge, and the best part is you will no longer need to run to the fuel station to recharge your car before hitting the road! Even a normal household socket could be used for charging.
These cars can be fuelled for very low prices, and many new cars will offer great incentives for you to get money back from the government for going green.
4. No Emissions
Electric cars are eco-friendly. It does not emit toxic gases or smoke in the environment as it runs on a clean energy source.
EV is growing in popularity. It is nearly three times as efficient as cars with an internal combustion engine.
6. Safe to Drive
Electric cars undergo the same fitness and testing procedures test as other fuel-powered cars. An electric car is safer to use, given their lower center of gravity, which makes them much more stable on the road in case of an accident.
In case an accident occurs, one can expect airbags to open up and electricity supply to cut from the battery. This can prevent you and other passengers in the car from serious injuries.
The mass production of batteries and available tax incentives further brought down the cost, thus, making it much more cost-effective.
8. Low Maintenance
Electric cars run on electrically powered engines, hence there is no need to lubricate, anything related to the combustion engine or a ton of maintenance tasks that are usually associated with a gas engine. No need to send it to the service station often.
9. Noise Pollution
Electric cars curtail noise pollution as they are much quieter.
It is also essential to understand the major setback of using Electric Vehicle.
1. Recharge Points
Electric fuelling stations are still in the development stages. Not a lot of places you go to on a daily basis will have electric fuelling stations. Rural or suburban area and run out of charge, it may be harder to find a charging station. However, until charging stations are more widespread, be sure to have a charging station maps where you live and where you frequently go so that you’ll be able to charge your new EV when you need to.
2. Electricity isn’t Free
Electric cars can also be a hassle on your energy bill if you’re not considering the options carefully. Sometimes electric cars need a huge charge to function appropriately which may result in poorly on your electricity bill each month.
3. Short Driving Range and Speed
Electric cars are limited by range and speed. Most of these cars have a range of about 50-100 miles and need to be recharged again.
4. Longer Recharge Time
Electric car takes about 4-6 hours and sometimes even a day to get fully charged. There are some kits that can cut the charging time down. But again, that is going to be an additional investment.
5. Silence as a Disadvantage
An electric car is, however, silent and can lead to accidents in some cases, people nearby might not hear you if mishap occurs.
6. Normally 2 Seater
Most of the electric cars available today are small and 2 seated only. They are not meant for the entire family.
7. Not Suitable for Cities, Facing Shortage of Power
Electric cars need the power to charge up. The cities facing power shortages are not for electric cars. The consumption of more power would hamper their daily power needs.