The electric vehicle market in India is picking up, but it may still not be enough to mean a significant shift to an electric future. Even three years down the line, sales of EVs are expected to remain miniscule compared to conventional ICE vehicles.
In a report on ET Auto, S S Kim, President of Hyundai India said that the sales of electric cars may not even be 1 percent of the total yearly sales in 2024 and this is despite the number of benefits afforded to EV customers.
According to Hyundai’s estimates, passenger car sales in India was around 2.5 million last year. Out of this, only around 3,500 units were EVS. Even if the market continues to grow to 4 million units in the next three years, Hyundai expects actual sales of EVs to be less than 40,000 units or 1 percent.
The sale and adoption of EVs is decided by a number of factors in the eyes of the public. High cost and driving range form the major part of the decision if charging infrastructure is not taken into account.
“We want substantial driving range, but the consumer also wants the cars to be priced reasonably,” Kim said. The high cost of lithium-ion batteries significantly constrains affordability, he added even while saying that Hyundai is developing an all-new affordable vehicle for the Indian market.
In India, Currently, Hyundai has the Kona EV on sale which is also a global model. The biggest EV sales in our market currently belong to Tata with the Nexon EV.
The report also adds that Hyundai is looking to invest around Rs 1,000 crore and may also explore a partnership with Kia to develop and manufacture locally allowing for better affordability.
“We should offer solutions that are affordable and reasonable. We feel that electrification will be the main pillar of our operations in the future,” Kim said.