Tata Motors is likely to gain a considerable market share in the Indian electric car market, as the company has announced to introduce two electric car models
Supported by the government schemes, falling battery prices and growing environmental concerns, the Indian electric car market is estimated to reach US$ 707.4 million by 2025, according to a report by market research and consulting firm P&S Intelligence.
The central as well as the state governments has launched several incentives like tax rebates, subsidies and grants, in order to promote electric car adoption in India that is predominantly driving the demand for electric cars in the country, the report said.
Over the past decade, the urban population in India has increased significantly, resulting in rising pollution levels. To curb the pollution, the Indian government is supporting and promoting the adoption of electric vehicles (EVs) in the country through its various financial schemes and incentives.
Government schemes boost EV market growth
In 2015, the government has launched Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme under the National Electric Mobility Mission Plan (NEMMP) in order to encourage adoption of clean fuel technology vehicles in the country that boosted the electric car market growth. Initially, the scheme was launched with a primary budget of US$ 11.46 million (Rs 75 crores). The target of the scheme is to reduce the upfront purchase cost of electric and hybrid vehicles and to encourage their early adoption.
As per the report, during the forecast period, Tata Motors is likely to gain a considerable market share in the Indian electric car market, as the company has announced to introduce two electric car models, Tiago Electric and Tigor Electric, by the 2019 end.
Other major companies operating in the Indian electric car market are Hyundai Motor, Toyota Kirloskar Motor, Volvo Car Corporation and Honda Motor, the report added.