Foreign Electric Makers Still Find Indian Market Too Immature To Enter

Indian EV Market still In Developing State

While the Indian government has extremely ambitious targets for Electric Vehicles, the action on the ground is sadly missing. There is a huge dearth of charging station for EVs and even the cost of the EVs is too high as compared to the normal ICE vehicles. The absence of incentives from the government in a substantial way to reduce costs for EV owners is a big hurdle. Besides the lack of charging infrastructure, India also dramatically lacks the manufacturing capacity and ecosystem. This means that customers have few choices when they go out to buy an Electric Vehicle while they have tons of choices when they go out to buy normal ICE cars.

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Nissan, the Japanese car giant is also reluctant to introduce its bestselling car the LEAF in India despite selling more than 250,000 cars globally. The company wants to do pilots and also wants to see a much greater commitment from the Indian government besides selling commercial sales of its EV cars. Mahindra is currently the only large car maker that is selling EVs in India. The charging infrastructure in India is nonexistent. Though there is a massive opportunity for growth of the EV market in India giving the declining cost curve of lithium batteries, the current landscape does not look too attractive for major manufacturers and service providers.

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In comparison countries such as China and USA are selling 100 of thousands of EV every year and have developed a big charging infra network. These countries continue to roll out new charging stations rapidly leading to a snowball effect. The incentives and regulations for EVs also have pushed sales in those regions. In comparison the incentives given for EV cars in India is minuscule and there are hardly any EV on the streets. Even people with the money to buy these EVs do not have much awareness with no major EV maker selling cars in India (e.g. Tesla).