India’s electric vehicle (EV) market grew 223% in 2022, adding around 48,000 EVs, according to market analyst firm Canalys.
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“The overall sentiment around the auto industry remained strong in India during 2022, propelled by pent-up demand and rising consumer buying power,” said Ashwin Amberkar, Canalys Automotive Analyst.
A good appetite for new technology among premium buyers, despite potential economic headwinds, is also boosting the segment. New cars have premium infotainment, connectivity and driver assistance features, he added.
Tata leads in EVs with 86% of the market share from just two models: the Nexon EV and Tigor EV. This is followed by MG’s ZS EV with 9% of the market share, and Hyundai’s Kona with 1.6% of the market share.
The most successful EVs from Tata are under $20,000, which is the sweet spot among buyers wanting a second car for city commutes.
Luxury brands like Audi, BMW and Mercedes-Benz sell globally popular EV models in India, but in small volumes. Mercedes-Benz and BMW posted record sales but represented less than 1% of the total market share.
India’s top car maker, Maruti Suzuki, will focus on manufacturing hybrids and alternative fuel cars in 2023. It has unveiled its first electric SUV, to be launched in 2025.
Hyundai, placed second in the Indian car market after Maruti, has already launched its second electric SUV IONIQ 5. Tata has planned to launch the Harrier EV by 2024 and Sierra EV by 2025.
The FAME India Phase II government scheme to promote nationwide rapid adoption of EVs through automakers’ incentives will continue to help establish the market, Canalys said.
The firm expects the EV market in India to grow to over 300,000 units in 2025, with a compound annual growth rate (CAGR) of 59%.
