Consumers are heavily smitten by electric vehicles.
Data from the Federation of Automobiles Dealers Associations shows that retail sales of electric passenger vehicles increased by 296% to 2,352 units last month, while sales of electric two-wheelers increased by 433% to 32,443 units.
Automotive companies are busy launching new ones in their portfolio to convert more vehicles to electric.
The closest trigger for this is the Russia-Ukraine conflict, which is expected to severely affect the auto industry. The shortage of semiconductor chips as well as rising crude oil prices could impact sales of conventional vehicles.
Meanwhile, a glimmer of hope is the increased demand for electric vehicles (EVs).
More number of EVs on the road, availability of new models and increase in the number of charging stations are expected to encourage buyers to shift to EVs.
Find stories that interest you
Hemal Thakkar, Director, CRISIL Research, said, “The rise in fuel prices will accelerate EV adoption, especially in the two-wheeler and three-wheeler segment.”
The proposed battery swapping policy will help in growing the EV ecosystem and adoption of electric vehicles in the country.
Most auto companies are ramping up production by partnering or setting up separate assembly lines, which will see more EV models on the road in fiscal 2023.
Thakkar said that in February, several EV players including Ola, Hero Electric and Ather Energy saw their highest ever sales.
Hero Electric and Mahindra Group last month announced a ₹150-crore five-year partnership, and launched their first electric two-wheeler Optima to drive the growth of electric vehicles.
Ola Electric and Ather Energy are also expanding the production capacity of electric vehicles.
MG Motor India on Monday launched its all-new ZS EV variant with a starting price of Rs 21.99 lakh.
FADA President Vinkesh Gulati said the EV industry is benefiting from the production ramp-up and rise in fuel prices.
Tata Motors managed to sell 2,264 EV units in February.
As of now, the company has more than 15,000 EVs, which is “2.7 times the EV industry sales in FY 2011…”, said a Tata Motors spokesperson. “Today, over 60% of our customers are first time EV buyers. are/are using it for primary use as against 30% a year ago. The positives from these customers are helping us to further expand the customer base,” the spokesperson said.
Tata Motors recently raised $1 billion from TPG Rise Climate to develop a comprehensive EV portfolio of 10 new EV models by 2025.
However, experts caution that when the current geopolitical situation unfolds, it could have an impact on overall automobile sales, including internal combustion engine vehicles.
The trade embargo is likely to be a constraint on the import of components from Russia and Eastern Europe.
“Companies are indigenizing and diversifying their procurement plans to protect themselves from international supply chain disruptions,” said Rishabh Jain, Program Lead, CEEW-CEF.
Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.
Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.