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Automotive Product Finder Magazine | EV passenger cars to see late adoption
EV passenger cars to see late adoption
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The Indian automotive market is experiencing overall slowdown as the sales show a staunch drop compared to the last year. Passenger vehicles (PV) sales which went up same time last year have shown no mercy over Indian passenger car manufacturers. With Hyundai and Tata introducing their fully electric and hybrids respectively, electric vehicles (EVs) have also shown a promising entery into the arena of passenger vehicles. This article takes a closer look on passenger cars, its adoption of EVs, and its future.
Slow response to EVs
With launch of Goverment’s policy reforms, EVs experienced a lot of hype but the current pace doe not shows the excitement. According to BloombergNEF projections, barely more than 8,000 EVs were sold in India during the past six years,based on the data compiled. China sells more than that in two days. In a nation of about 15 crore drivers, only 130 Kona SUVs were sold to dealers through August. That slow pace is emblematic of the difficulties carmakers face in establishing an electric foothold in the fourth-biggest auto market, even with committed government support.
Salvaging festive season
Passenger vehicles were experiencing a huge drop in sales from the month of July has finally seen a positive change. The festive season of Diwali has help to bring back the business to the passenger vehicles. Mahindra and Mahindra experienced better sales on the Dhanteras day of Diwali compared to the last year.
Som Kapoor, Automotive future of mobility lead, EY, says, “Electric cars in India have just begun launching scalable models, though there are few others who are still researching and developing better solutions. EVs will see a better future if the costs are brought down. The costs pose a big challenge in the current scenario. By 2023, most automakers would have launched their scalable models which will be well within cost bracket of consumers.”
“There is a need to develop more battery technologies on the lines of using battery in a more smart and efficient manner,” adds Kapoor. As per Earnst & Young report, the PV fleets are expected to adopt EV first and the consumers will wait for a better value preposition.
Shalendra Gupta, CFO, Altigreen Propulsion Labs, says, “India is slow in EV adoption but is going in the right direction. Once PV segment adopts electric vehicles, there will be acceptance in the automotive market. Many in the industry are waiting for the right ecosystem comprising charging infrastructure, service stations, pricepoints etc.”
Gupta adds, “The recent launch of the Tata Tigor EV, an all electric car pawed way for competitive pricing against the internal combustion engine (ICE) passenger cars.”
Trends Passenger cars have been experiencing introductions of high-end technology solutions like GPS, Bluetooth, in-car entertainment etc. The latest innovations in connected car technology are set to revolutionise the overall driving experience. The driver is set to have full control of the vehicle as the dashboard will show everything. Some recent advancement by global technology developer, Continental, show new avenues like immersive 3D interactive display, advance sensors, connected car, etc. ICE PVs will also see such introductions soon while EVs have started adopting such technologies already.
India auto component industry has significant growth opportunities considering the rapidly expanding OE, aftermarket and export demand as global and local suppliers adopt various strategies to establish their position. Domestic suppliers are keen on forming alliances to access advanced technology and global best practices in R&D to meet the needs of OEMs for faster new product introductions and greater levels of outsourcing. Global suppliers are setting up R&D centres in India to increase local content in vehicles and at the same time leverage it as a global hub for design and technology. In particular, the supplier community will need to adopt diverse expectations from the OEMs, who are expecting quick responsiveness and global quality standards. The lower tier suppliers will receive attention over the next several years as OEM expects their tier 1 suppliers to take responsibility for and manage tier II and tier III suppliers. While domestic suppliers are not likely to achieve system integration capabilities in the short-term, they would certainly become strategic partners to OEMs in terms of managing the supply chain.
Shared mobility adoption
According to an EY knowledge paper, the Indian ride sharing market is projected to grow at a CAGR of 33.86 per cent, by value, from an estimated USD 552.0 million in 2018 to USD 4,251.7 million by 2025. The e-hailing segment is estimated to be the largest, by value. It is projected to reach USD 3,358.9 million by 2025 from an estimated USD 427.5 million in 2018, at a CAGR of 34.24 per cent. The car rental segment is estimated to be the second largest and is expected to grow from an estimated USD 97.8 million in 2018 to USD 488.9 million by 2025, at a CAGR of 25.84 per cent.
By 2023, most automakers would have launched their workable and scalable models which will be well within cost bracket of consumers. There is a need to develop more battery technologies on the lines of using battery in a more smart and efficient manner.”
Som Kapoor, Automotive future of mobility lead, EY
India is slow in EV adoption but is going in the right direction. Once PV segment adopts electric vehicles, there will be acceptance in the automotive market.”
Shalendra Gupta, CFO, Altigreen Propulsion Labs
Domestic suppliers are keen on forming alliances to access advanced technology and global best practices in R&D to meet the needs of OEMs for faster new product introductions and greater levels of outsourcing.
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