The success of EVs depends on the industry’s ability to address these ownership challenges, said Ravi Bhatia, president of automotive industry data and analytics firm Jato Dynamics. Electric vehicles that were expected to lead India’s shift towards cleaner mobility are facing unexpected competition from hybrids and CNG models, which are growing in popularity.
Sales of cars and SUVs running on CNG rose 32.65% in the first 10 months of 2024 from a year earlier, followed by hybrids (plug-in and strong hybrids) at 19.22%, with both outpacing the pure electric, or battery-powered, segment that grew 8.56%, according to data collated by Jato Dynamics. All three segments grew faster than the 2.25% expansion in the Indian automobile market, where vehicles strapped with conventional petrol- and diesel-fuelled internal combustion engines (ICE) still account for nearly eight out of 10 vehicles sold.
While consumers seem to favour a gradual transition to hybrid technology over a straight shift to electric, industry executives say a slew of new electric vehicles that are linked up for launch – among them the highly anticipated Suzuki e-Vitara, Hyundai Creta EV, and Mahindra BE.6e and CEV9e – could add excitement to the EV market in early 2025.
Still, with buyers looking for convenience, cost-effectiveness and practicality, in addition to sustainability, the challenges for pure electric vehicles are more than just being environmentally friendly, they said. Lack of charging infrastructure is still a main hindrance, while insurance is more expensive than ICE vehicles, and being a new technology, there is uncertainty about the long-term residual value of electric vehicles.
Ownership Issues
The success of EVs depends on the industry’s ability to address these ownership challenges, said Ravi Bhatia, president of automotive industry data and analytics firm Jato Dynamics. Toyota Motor, which offers several models with the hybrid technology, including strong hybrids where the vehicle can run independently on a conventional engine or electric motor, is witnessing strong demand for such vehicles.
“Hybrids and EVs are complementary technologies, and the increased offtake of hybrids is only going to help in faster localisation and mass manufacturing of EV powertrain parts, which are common, thus also helping to increase EV offtake,” said Vikram Gulati, country head and executive vice president for corporate affairs and governance at Toyota Kirloskar Motor, the local unit of the Japanese company. “This will lead to the creation of a strong ecosystem which gives [automakers] the advantage of going with any technology as per the market needs.”
To learn more about the electric vehicle ecosystem and meet the key industry leaders, click here.
