The Rise of Electric Vehicles in India

Wednesday - May 3 2023, 11:35 UTC - 1 year ago

The EV market in India is gaining momentum as the country looks to reduce its dependence on fossil fuels and combat air pollution. The Indian government has set an ambitious target for EV adoption in India which has received significant support from the government, corporate sector, and local players. Ola Electric Mobility, Ather Energy, and other urban mobility companies have made an impact in this market due to competitive pricing, innovative technology, and aggressive market penetration.

As we continue to combat climate change, electric vehicles (EVs) are becoming one of the increasingly popular choices to help cut down on carbon emissions. The EV market in India is also gaining momentum as the country looks to reduce its dependence on fossil fuels and combat air pollution. The Indian government has set an ambitious target of electrically powering 30% of personal cars, 70% of commercial vehicles, and 80% of two- and three-wheelers electricity by 2030.

The government has taken several initiatives to achieve these goals, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which offers subsidies and incentives to promote EV adoption in India. But it is not just the government sector taking initiatives; the corporate sector is also taking steps to increase EV penetration in India. A number of businesses, like Mahindra & Mahindra and Tata Motors, have invested in EV technology and research in an effort to encourage the usage of EVs.

Several smaller local players, such as Ola Electric and Ather Energy, are also making significant strides in promoting the use of EVs in India. As a result of the contributions from the government and corporate sectors, the Indian EV market has shown significant growth, with the sales of EVs expected to reach 17 million units by 2030.

Here we take a look at the past, present, and future of the EV market in India and the players making an impact on this EV market. With an increasing demand for EVs and a supportive government and corporate environment, the future of the EV market in India looks promising.

--- The rise of the local players: Ola and Ather --- .

India's EV market is not only attracting multinational giants like Tesla and Hyundai but is also giving rise to local players who are making significant strides in promoting the sale and use of EVs in the country. Speaking to IE, Aswanth Krishnan, Vice President of Technology at QpiVolta Technologies, states that the exponential growth of the 2-wheeler segment of the EV market in India has been led by local players who have emerged as strong contenders in this market.

Ola Electric Mobility, a subsidiary of ride-hailing giant Ola, is headquartered in Bengaluru. In 2021, it unveiled the Ola S1 and S1 Pro, two electric scooters that have garnered significant attention due to their competitive pricing and impressive features. The company has also announced plans to build the world's largest two-wheeler manufacturing plant in Tamil Nadu.

Ather Energy is another Bengaluru-based start-up developing electric scooters since 2013. In 2021, the company launched the Ather 450X, which boasts a range of 65 miles (105 km) and a top speed of 56 ml/h (90 km/h). They have also set up charging infrastructure in Bengaluru, Chennai, and Pune, with plans to expand to other cities.

"Established players like Hero, TVS motors, Tata, KIA, and Hyundai are entering a market dominated by Ola and Ather in the 2 and 4-wheeler segment. Interestingly though, urban mobility companies are also making an impact. Companies like Yulu, Bounce, and BluSmart are operating EV fleets, which have met with good reception," continues Krishnan.

The rise of local players seems to be making an impact on the EV market. This might be due to several reasos like competitive pricing, innovative technology, and aggressive market penetration strategies followed by these companies.