Local car makers drive surge in Indian EV market

The country targets 30% EV market share by 2030.

Local car manufacturers continued to lead India’s burgeoning electric vehicle (EV) market which saw sales more than doubling in the first half of the year, according to market analyst firm Canalys.

Electric car sales in India surged by 137% from a year ago to 48,000 units sold in the first six months, accounting for 2.4% of the country’s overall auto sales that hit 1.8 million in the same period.

Tata Motors, the automaker unit of Indian conglomerate Tata Group, dominated the market after having sold 34,000 units or 72% of first-half EV sales. British car brand MG takes the second spot with 10.8% market share while Mumbai-based Mahindra recorded 9% share.

France’s Citreon, China’s BYD, as well as Korean car brands Hyundai and Kia accounted for the remaining 8.2%.

Canalys noted how car original equipment manufacturers (OEMs) are aligning their strategies with the goal of the government to have EVs make up for 30% of all cars sold by 2030.

The OEMs are expected to introduce mode electric car models in the latter half of the decade while the country improves its EV charging infrastructure.

India, the world’s third largest automotive market, also continues to attract EV giants like Tesla and BYD to set up shop in the country thanks to its healthy talent pool, favorable government policies and active EV subsidiaries, Canalys said.

“India offers a good supplier ecosystem to manufacturers. However, there is an immediate need for sufficient EV component suppliers in the country.” said Ashwin Amberkar, analyst at the research firm.

Tata will likely continue to lead the EV sales for the rest of the year despite heightened competition.

Canalys projects EV’s market share to breach 3.5% in the second half.