A Giant Auto Market Is Short of EV Buyers
Consumers are back and willing to spend on electric vehicles in India, but the infrastructure to support the sector is lagging. Hybrids could be the answer.
All that glitters.
Photographer: Anindito Mukherjee/Bloomberg
India is now among the top three auto markets in the world. A feat indeed, but it’s being driven by internal combustion-engine cars even as global pressures force a pivot to cleaner electric vehicles.
Over 4 million four-wheel vehicles were sold in India last year, surpassing Japan and coming in behind China and the US. That’s a stunning reversal from almost eight months ago, when sales tanked to a decade-low and swathes of production capacity lay idle. Now, with the economy growing at a fast clip, car buyers are back and willing to spend. While the broader market is largely made up of motorbikes, where the cost of ownership is low compared to larger autos, aspirational Indians are edging into the passenger segment. Bigger, sport utility vehicles are now a larger portion of the mix, too.