Indian Carmakers Gear up for EV Push in 2025 Despite Global Slowdown

17 Jan 2025 CW Team

Automakers in India are preparing to launch nearly a dozen new electric car models this year, many targeting the premium market. These vehicles are expected to feature extended driving ranges and faster charging capabilities, aimed at attracting consumers amid a global slowdown in demand for electric vehicles (EVs).

Electric cars are set to dominate India's five-day auto show in New Delhi starting Friday. The event will showcase models from Vietnamese newcomer VinFast, alongside domestic players such as Maruti Suzuki and Mahindra & Mahindra, as well as international competitors including BYD, Toyota, and Hyundai.

Leading the Indian EV market, Tata Motors and JSW-MG Motor, partially owned by China's SAIC Motor, are planning to unveil an expanded lineup. The shift toward cleaner vehicles is driven by stricter emission norms that will come into effect in 2027 in the world's third-largest car market.

India’s EV market currently remains modest, with electric vehicles accounting for only about 2.5 per cent of the 4.3 million cars sold in 2024. Factors such as high prices and limited charging infrastructure have deterred widespread adoption. However, the government aims to increase EV penetration to 30 per cent by 2030.

Globally, EV sales growth slowed to 13 per cent in 2024 compared to the previous year, although they surpassed 10 million units for the first time, according to research firm RhoMotion. In India, despite the deceleration, EV sales rose by 20 per cent in 2024 to approximately 100,000 units, outpacing the overall car market's 5 per cent growth.

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