Government support to revitalise electric vehicles market: Frost & Sullivan
The total electric and hybrid vehicles market is expected to grow from 1,25,257 units in 2013 to 1.1 million units by 2021
BS B2B Bureau B2B Connect | Mumbai
The electric and hybrid vehicle industry in India, which is at a nascent stage, is slowly creating opportunities for automotive original equipment manufacturers (OEMs), according to Frost & Sullivan. The subsidies from the Government has supported electric vehicle (EV) industry so far, however the same could have been more consistent for the overall market growth. However, the Indian government’s plan to re-introduce incentives for electric vehicle buyers is expected to revitalise the market. The foray of more automotive manufacturers into the Indian electric and hybrid vehicle industry too will subsidise charging infrastructure and quicken market expansion.
According to Frost & Sullivan’s new study, ‘Strategic assessment of electric and hybrid vehicles market in India’, the total electric and hybrid vehicles market is expected to grow from 1,25,257 units in 2013 to 1.1 million units by 2021 at a compound annual growth rate of 31.6%. Domestic and international vehicle manufacturers are expected to launch more than 25 EV models by 2021.
“Meanwhile, the infrastructure for electric and hybrid vehicle is practically non-existent in India, with only a handful of OEMs installing charging ports. The infusion of around ?120.0 billion by the government for power generation as well as charging infrastructure in various cities is likely to expand infrastructure and market scope,” said a Frost & Sullivan Automotive and Transportation Research Analyst.
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Despite this support from the government, manufacturers still struggle to find price-effective local suppliers for electric and hybrid vehicle components. As a result, the cost of EV ownership is roughly 45% higher than a conventional car.
Besides price, OEMs must address factors like range anxiety, power and output with better technologies to empower buyers with confidence about the product and the industry. Developing models with lesser dependence on charging infrastructure will also be crucial to hasten adoption.
“Due to the complexity of technology involved, collaborations with players from much more evolved electric vehicle industries like in Europe or North America will ease out the pressure of clocking high growth rates,” added the Analyst.
Success of EV and hybrid vehicles in India is inevitable as vehicle users are informed and aware of the technology benefits. The need is to develop an ecosystem, which would address issues like range anxiety, fast charging and initial investment in the vehicle. India’s policy makers will have a major say in developing such an ecosystem to promote the use of electric and hybrid vehicles in times to come, added the Frost & Sullivan report.
First Published: Jul 02 2014 | 10:33 AM IST