Electric car sales have been picking pace in India. Though the target is to electrify ~30% of the fleet by 2030, the country still has a long way to go. Electric car sales crossed the 18,000 mark registering a growth of ~270% in the first half of FY23. Tata is leading the charts (~85% market share) and other automobile giants like Mahindra, Hyundai, and MG are following suit. India is expected to become one of the largest markets for electric vehicles in the near future.
Also, read Comparing the Four Best Selling Electric Cars In India in 2022
Some of the leading Tata cars in the electric segment are Nexon EV Prime, Nexon EV Max, and Tigor EV. Tata Tiago has also joined the list and registered the highest online booking of 10,000 units in just one day. Tata Tiago is priced at Rs.8.49 lakh (~$11,000). The two factors that have made Indians reluctant in buying an electric car are its price and safety concerns. India is a price-sensitive market and hence car companies are trying their best to introduce cars that do not pinch the buyer. The price of an electric car seems high because of the high import prices of raw materials and batteries. If we can domestically master the production the prices will go down effectively.
Safety is also a concern after Tata Nexon caught fire in Mumbai earlier this year in June. However, looks like people are now more attracted to affordability and new-age technology. Tata Tiago seems like the car to drive EV sales in the country. Tata’s Nexon, MG Motor’s ZS, and Hyundai’s Kona are all priced in between Rs 14 lakh and Rs 25 lakh. Mahindra’s Reva was the cheapest electric car with prices starting at Rs 3 lakh. However, the car was discontinued by the company due to lower sales and small size concerns. There continues to be a gradual shift to electric cars and the EV industry is expected to achieve consistent progress in the second half of FY2023 as well.
