India electric car market growth
If you thought electric car manufacturers are only found in the West, then you need to think twice. The Indian electric vehicle market is shooting towards its peak faster than it is presumed to be. With its growing momentum in the Indian market, other electric car manufacturers like Tesla could have a bumpy ride trying to find a market in there.
Electric vehicle companies in India include the Mahindra e-Verito and the Tata Tigor EV. Thanks to the Indian government, key frameworks have been put in place that supports electric vehicles; with one projecting 30% use of electric vehicles by 2030. Other emerging electric vehicle companies in India include the Hyundai set to launch its fleet in 2019 and the Maruti Suzuki set to launch its vehicles in 2020.
Tesla’s expected presence in India
In the wake of all these developments, Tesla Motor Company- the largest electric car battery the world over is daring to penetrate other markets in the world. India being part of these markets, stiff competition could be rife. In the recent past, Tesla CEO Elon Musk has shown the desire for Tesla to get into the Indian market by 2019. For Musk, a partial presence in India would be ideal as they gear to scale operations in 2020. For Tesla, there are two sides of the coin when it comes to its success in the Indian market. Firstly, there is the presence of electric vehicles in the Indian market already. Two other companies are set to launch in 2019 and 2020.
It’s not like Tesla is going to find a regular market for their products in India. This could prove difficult to its expansion plans. On the flip side, the Indian Government policies like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) could favor the introduction of its fleet of electric vehicles in India.
Tesla vs Mahindra E Verito
It seems to me the electric car company to dominate the Indian market will have to invest in giving their customers the best user experience. This could involve companies doing value additions to their electric products that are already available in the market; creating a niche within a niche. The US-based Tesla has already asserted itself as a market leader in electric car battery manufacturing, eating the larger pie of 60% domination the world over.
Electric car companies that will invest in cheaper electric batteries that have large capacities for longer mileages are most likely to sway world markets their way, India’s Mahindra E Verito not an exception. Tesla is daring to go with the announcement that one of its machines, the Tesla Roadster that is to be launched in 2020 will have a high energy density battery that covers a range of 1000 kilometers. Back in 2010, Lithium-batteries could cost $1000 per kilowatt hour. Now, Tesla says this will shoot down to $100 per kWh in two years’ time. It’s going to be interesting to see how their electric car products will play out with the Mahindra E Verito and e2oPlus electric cars already in the Indian market.