Carmakers in India plan EV onslaught in 2025 despite slowing global demand

Guocoland

16/01/2025 02:30

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      Carmakers in India to launch at least a dozen new EVs in
2025
    

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      VinFast, BYD, Hyundai, Maruti Suzuki to showcase new EVs 
    

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      EV sales in India grew 20% in 2024, outpacing total car
sales
    

  
    By Aditi Shah and Nandan Mandayam
       NEW DELHI, Jan 16 (Reuters) - Automakers operating in
India plan to launch close to a dozen new electric car models
this year, many in the premium market, with longer driving
ranges and faster charging times, to attract buyers as demand
for EVs slows down globally. 
    Electric cars will take centre stage at India's five-day
auto show in New Delhi starting Friday with models from new
Vietnamese entrant Vinfast  0TL.F  shown alongside domestic
brands Maruti Suzuki  MRTI.NS  and Mahindra & Mahindra  MAHM.NS 
as well as global rivals BYD  002594.SZ , Toyota  7203.T  and
Hyundai  005380.KS .
    India's EV market leaders Tata Motors  TAMO.NS  and JSW-MG
Motor, part-owned by China's SAIC Motor  600104.SS , will
showcase an expanded line-up in the world's third-largest car
market where tighter emission norms starting from 2027 are
forcing a move to cleaner cars. 
    India's EV market is small, with electric models making up
about 2.5% of the 4.3 million cars sold in 2024 as high prices
and a patchy charging network hold back buyers.
    The government wants to grow this to 30% by 2030.
    Globally, electric car sales growth slowed to 13% in 2024
from a year ago but crossed 10 million units for the first time,
according to data from research firm RhoMotion.
    While EV sales growth in India is also slowing, rising 20%
in 2024 from a year ago to about 100,000 units, it outpaced the
overall car market growth of 5% over the same period. 
    Auto industry executives say new models with longer ranges
and faster charging times could lift demand, with analysts
forecasting electric car sales in India to double this year. 
    The first EVs in India, mostly from market leader Tata
Motors, were gasoline cars converted to electric, delivering a
range of up to 300 kilometres (186 miles) on a single charge,
which many found inadequate for inter-city journeys. 
    The majority of new launches are designed as EVs from the
start at a minimum range of 400 km. Some automakers, such as
Mahindra, are offering more than 600 km and fast charging from
20%-80% in under 20 minutes. 
    Mahindra's two electric SUV launches for this year are
priced at $22,000 to $35,000. The average price of a car in
India is around $12,000, with more expensive models growing at a
faster pace than affordable ones. 
    EV maker VinFast, which is building a car factory in
southern India, will display its mini-SUV VF3, a three-row MPV,
the VF9, among others. 
    "India's burgeoning middle class, coupled with strong
government incentives to promote EV adoption, makes it a natural
focus for VinFast's global expansion," the carmaker said.
    South Korea's Hyundai  HYUN.NS  will showcase the
India-built electric version of its popular Creta SUV, which it
hopes will help take on rivals, while BYD will display its
Sealion 7 electric SUV.  
    Maruti, India's largest carmaker by sales, will display its
first EV, the e Vitara SUV which will launch later this year.
The car has been jointly developed by Maruti's parent Suzuki
Motor  7269.T  and Toyota.
    Some carmakers also plan to show other clean fuel
technologies such as plug-in hybrid cars, flex-fuel models,
hydrogen fuel cell vehicles and gas-based cars alongside EVs. 
    "The path to a faster electric takeoff really works better
if you have all electrified vehicles being encouraged in a
proportionate manner," said Vikram Gulati, country head and
executive vice president for corporate affairs and governance at
Toyota's India unit.

 (Reporting by Aditi Shah, Editing by Louise Heavens)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))