Government Support to Bolster Electric and Hybrid Vehicles Market in India, finds Frost & Sullivan
June 30, 2014 - Mumbai, Maharashtra, India
New analysis from Frost & Sullivan, Strategic Assessment of Electric and Hybrid Vehicles Market in India, finds that the total electric and hybrid vehicles market stood at 125,257 units in 2013 and estimates this to reach 1.1 million units by 2021 at a compound annual growth rate of 31.6 percent. Domestic and international vehicle manufacturers are expected to launch more than 25 EV models by 2021.
“Meanwhile, the infrastructure for electric and hybrid vehicle is practically non-existent in India, with only a handful of OEMs installing charging ports,” said Frost & Sullivan Automotive and Transportation Research Analyst. “The infusion of around â‚¹120.0 billion by the government for power generation as well as charging infrastructure in various cities is likely to expand infrastructure and market scope” he added.
Despite this support from the government, manufacturers still struggle to find price-effective local suppliers for electric and hybrid vehicle components. As a result, the cost of EV ownership is roughly 45 percent higher than a conventional car.
Besides price, OEMs must address factors like range anxiety, power and output with better technologies to empower buyers with confidence about the product and the industry. Developing models with lesser dependence on charging infrastructure will also be crucial to hasten adoption.
“Due to the complexity of technology involved, collaborations with players from much more evolved EV industries like in Europe or North America will ease out the pressure of clocking high growth rates,” added the Analyst.
Success of EV and Hybrid Vehicles in India is inevitable as vehicle users are informed and aware of the technology benefits. The need is to develop an “Eco System” which would address issues like “Range Anxiety”, “Fast Charging” and Initial Investment in the vehicle. India’s policy makers will have a major say in developing such an eco-system to promote the use of Electric and Hybrid vehicles in times to come.
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Strategic Assessment of Electric and Hybrid Vehicles Market in India is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth
Partnership Service program. Frost & Sullivan’s related studies include: Inductive Charging for Global Electric Vehicles (EV) Market, Electric Vehicle Charging Infrastructure (V2G and V2H) in Japan, and Global Hybrid and Electric Heavy-Duty Transit Bus Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Source: Business Wire India