New Entrants & Increased Competition Set To Accelerate EV Adoption In India

Leading automobile manufacturers in India believe that the entry of more players into the electric vehicle (EV) segment will help break barriers and accelerate the adoption of electric mobility.

The introduction of new products will cater to diverse customer needs, and increased competition is likely to expand the market.

Recent announcements from industry leaders, such as Maruti Suzuki India’s e VITARA and Hyundai Motor India’s Creta Electric, will likely change the negative narrative surrounding EVs in India.

Unified Industry Voice To Push EV Adoption In India

Executives from various automakers emphasized that a unified voice across the automotive industry will contribute to a smoother transformation towards electric vehicle adoption.

Mercedes-Benz India Managing Director and CEO Santosh Iyer told PTI, “The general narrative on EV (earlier) was a bit more on the negative side, with a lot of question marks. Today, with all Original Equipment Manufacturers now having a credible EV portfolio, and they’re all wanting to sell, I think the narrative on EVs will change, and the real benefits of owning an EV will be uniform now.”

He stated that the confusion from last year ‘would now ideally reduce’, he said, “I think a unified voice from the Indian automotive industry across players and segments will help for a better transformation, or acceleration towards electric adoption.”

Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director Shailesh Chandra echoed these sentiments, asserting, “When all the manufacturers come in, there’s no doubt that if all the OEMs are going for electric vehicle, possibly now they (customers) feel confident that this is possibly the technology of the future and is not only backed by one manufacturer and that should boost the confidence. That boost of confidence should expand the market.”

On the increased competition, he noted, “That competition is a good thing because, as it is going to expand the market.”

Addressing Negative EV Perception

Chandra said that for the past year, EVs have been under stress because “globally everybody was talking about electric vehicles in a very negative way, gloom and doom scenario.”

“Therefore, as a consumer, you might question whether this is the right time, or even whether I should even consider buying an electric vehicle,” he further added.

He said that with the new launches, there will be more attention on electric vehicles. When multiple voices discuss EVs, it will raise awareness and boost the market. This will also lead to collaborative efforts in building the ecosystem.

BYD India Head of Electric Passenger Vehicles Rajeev Chauhan remarked, “Looking at it, our sense is that with the entry of the largest manufacturer of India (Maruti), with the entry of the highest selling car in the SUV segment (Creta) getting an electric version, the number three player (Tata Motors), increasing their portfolio in this bracket, so this (EV segment) is bound to grow very, very quick.”

India’s EV Penetration To Rise By 2025

Chauhan believes that by 2025, EV penetration in India’s passenger vehicle segment will become ‘sizable’.

Mahindra & Mahindra Executive Director and CEO Rajesh Jejurikar shared an optimistic outlook, stating that as more players enter the market, the ecosystem will develop faster, leading to greater EV adoption.

“So I think 2025 is the start of that period where over the next 2-3 years we will start seeing significant EV penetration because there are more players, products,” Jejurikar said.

Chandra agreed, but added a word of caution, “I believe that the growth should now be tremendous, and if it does not, then it’s a problem for all.”

Electric vehicles remain the main attraction at the Bharat Mobility Global Expo 2025.

On the second day of the event, VinFast and BYD presented their passenger EV offerings, while Vayve Mobility introduced a solar-powered electric minicar.

In the commercial vehicle category, JBM Electric Vehicles launched new electric buses, and EKA Mobility unveiled an electric truck and a six-seater public transport vehicle.

The first day of the expo saw Maruti Suzuki launch its first battery electric vehicle, the e VITARA, and Hyundai unveiled the Creta Electric.

Homegrown auto giants Tata Motors and Mahindra & Mahindra continue to lead the domestic EV passenger vehicle segment.

According to Union Minister H D Kumaraswamy, total EV sales in India surpassed 14.08 lakh units in 2024, achieving a market penetration rate of 5.59%, up from 4.44% the previous year.

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