India: Luxury-car manufacturers are driving the change when it comes to bringing in cleaner and greener vehicles to India, to help address the country’s increasing pollution challenge. At least half a dozen zero-emission, pure electric cars and SUVs, such as the Porsche Taycan, Mercedes-Benz EQC, BMW ‘I’ brand, Audi E Tron, Jaguar IPace and the Nissan Leaf, are set to hit the Indian roads in the next couple of years. Also in the queue are a dozen hybrid vehicles, which have a 25-50% lower carbon footprint compared with conventional vehicles. This enthusiasm of global automakers is driven by the introduction of a rule that allows each manufacturer to import 2,500 vehicles a year without the need for homologation, which is an expensive affair. Automakers spend Rs 2-4 crore to launch a model in the Indian market after local certification. This cost and the relatively small market had made companies reluctant to bring high-performance vehicles here. Given that the manufacturers are now considering importing a couple of dozen models across them, the new rule could potentially help them save up to Rs 100 crore on homologation itself.
According to Rishi Mallarh, analyst at BlueWeave Consulting, Electric vehicles (EVs) are the inevitable future of the automotive industry. The luxury carmakers have realized the EVs offer a superior driving experience. The electric vehicle market in India is anticipated to create lucrative opportunities for electric vehicle manufacturers as well as for vehicle component manufacturers in the near future. The demand for the passenger electric vehicles is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles.
The policy, announced in September last year, opens up an opportunity for the automakers to bring in other high-performance cars like the AMG from Mercedes-Benz, RS from Audi and M cars from BMW, as they don’t have to test these vehicles locally before launch. Under the new rule, certification of the vehicles done at their country of origin would be enough to sell here. The new import rule allows luxury-car companies to bring their latest offerings and niche segment cars to India which not only cuts down on the homologation cost but also reduces the waiting period for car launch in India post their global roll out.
In fact, companies already started taking advantage of this. Mercedes-Benz introduced its V-Class multipurpose vehicle in India within three months of its global launch. Mercedes-Benz will be introducing more than 10 battery-powered vehicles in the next three-four years. German automaker, Audi would bring in models like the Q8 and E Tron in the coming years. The Audi E Tron which will be perfect for the Indian market requirements once the infrastructure is conducive. This shall hopefully happen by 2020 latest.
The move to electrify vehicles has gathered momentum the world over. The revised policy in India will ensure a majority of these high-tech cars make their way into India very close to the global launch.
According to the recently published report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market by Propulsion type (BEV, HEV, PHEV, FCEV), by Vehicle type (Bus, Truck, Van, Others), by Component (Motor, Battery, Others) – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024,” The Global Electric Commercial Vehicles market is projected to grow at a CAGR over 13.0% during the forecast period in terms of value. The market is expected to reach over USD149, 316 Mn by 2024, supported by government subsidies and tax rebates for commercial electric vehicles. Need for fuel-efficient and emission-free vehicles and the increasing demand for the electric commercial vehicle such as an electric truck in the logistics industry to minimize the additional liability of fuel expenses. Innovations in EV battery capacity, which will enable the electric commercial vehicle to carry heavy loads over a longer range, can create new revenue generation opportunities.
According to the upcoming report by BlueWeave Consulting on “India Electric Commercial Vehicles Market by Propulsion type (BEV, HEV, PHEV, FCEV), by Vehicle type (Bus, Truck, Van, Others), by Component (Motor, Battery, Others) – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024,” India Electric Vehicle is projected to grow over a forecast period. The demand for electric vehicles is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several states and growth of public charging infrastructure in India are fuelling the market growth.