[Car Story] 'Electric Car Toddler Steps' EV Market Race Ignites in India

On the 17th, one day before the Chuseok holiday, export vehicles are waiting to be loaded at Pyeongtaek Port in Gyeonggi. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yu Je-hoon] The competition among automakers to secure a foothold in the nascent Indian electric vehicle (EV) market is heating up. Although the current EV market share remains minimal, the battle for the potential of India, one of the world's top five automobile markets, is intensifying.

According to Indian consulting firm JMK Research & Analytics on the 23rd, the number of electric vehicles sold across India last month reached 34,316 units, a 222% increase compared to the previous year. Of these, 92% were two- and three-wheelers, while passenger and commercial vehicles accounted for only 3.8%, approximately 1,300 units.

The Indian EV market remains in its infancy due to relatively low local income levels. In fact, 70-80% of cars sold in India are priced below 1 million rupees (about 15 million KRW), which is far below the average price of a mid-sized electric vehicle at around 45 million KRW (BloombergNEF).

However, recently, Indian automakers have been making moves to capture the EV market. Tata Motors, ranked third in total vehicle sales and first in EV sales in India, secured $1 billion (about 1.1 trillion KRW) from TPG Rise Climate and unveiled a blueprint to launch 10 new EV models by 2026.

India's largest automaker, Suzuki-Maruti, has also announced plans to release electric vehicles by 2025. Notably, Suzuki-Maruti aims to lower EV prices to under 15 million KRW, including subsidies, reflecting market characteristics.

Global companies are also making inroads. Tesla, the world's largest EV manufacturer, established its Indian subsidiary earlier this year and is preparing to enter the market. Tesla is reportedly considering operating production facilities in India depending on future performance. Hyundai Motor and Kia, ranked second in market share after Suzuki-Maruti, are also gearing up to target the EV market. Hyundai and Kia plan to launch six EV models locally by 2024.

The early competition to secure market share stems from India's potential. Recently, with worsening environmental pollution due to economic development, the Indian government has established a roadmap for eco-friendly vehicle adoption. The government aims to convert 70% of all commercial vehicles, 40% of buses, and 30% of passenger cars to electric by 2030. The Council on Energy, Environment and Water (CEEW) projects that the related market size, including production and infrastructure, will reach $206 billion (about 240 trillion KRW) by 2030.

An industry insider said, "Since Hyundai and Kia already hold a solid second place in market share, they are in a favorable position to strengthen their presence in the EV market as well," adding, "However, securing price competitiveness considering market characteristics will also be important."