Chinese carmakers aim to dominate the Indian EV market
Warren Buffett-backed Chinese electric vehicle firm, BYD Auto on Monday (October 31) opened its first passenger vehicle showroom in Chennai. This was the first step in BYD’s bold ambitions for India: by 2030, BYD expects to capture at least 40% of the Indian EV market.
BYD, which fired Elon Musk’s Tesla world’s largest EV manufactureris paving the way for other Chinese manufacturers, who are targeting the nascent EV market in India, believe experts.
“With their own learning in leading the EV revolution in China, Chinese firms will not only have the upper hand but [also] Resources to be able to be among the top players in India’s EV industry,” said Amit Gupta, managing director of Jaipur-based auto software firm SAG Infotech.
Executives from several small and medium Indian EV manufacturers who spoke quartzFelt the feeling of deja vu.
“Chinese players are better positioned in the developing electric market than their Indian counterparts,” said an executive working at a Maharashtra-based electric two-wheeler firm on the condition of anonymity. “The Chinese have already dealt with the problem of EV affordability due to an extensive home-based manufacturing ecosystem, something that gives them an advantage not only in the smartphone sector but in various other industries as well.”
Chinese companies, they are concerned, could dominate the Indian EV sector just as they currently dominate the smartphone market.
How Chinese companies flooded the Indian phone market
Government of India tried to increase Domestic phone manufacturers, but little impact. Chinese devices, either imported in India or manufactured here, rule the smartphone market. Chinese brands make up 70% of the market compared to 1% for Indian brands.
By the end of September, apart from Samsung, only Chinese companies were among the top smartphone makers in India.
Companies like OnePlus, Oppo and Vivo entered India in 2014 and quickly outperformed their domestic competitors, making India the world’s second largest smartphone marketbehind America.
The trajectory of these companies—from importing phones to assembling in India, to manufacturing them locally—presents a model for Chinese EV makers. At present, BYD imports parts and assembles the cars here in India, because Tax on imported fully built cars are high. But as soon as the government gives incentives to make cars in India, Chinese companies will set up factories, thus putting India in the driver’s seat of the EV revolution.
China is way ahead of India in EV revolution
Before India started considering EVs as a transportation option, China had started investing in this area. In the last decade alone, China has almost $60 billion to build an EV ecosystemas well as reducing the number of licenses available for gasoline-powered cars.
India aims to achieve a EV sales penetration By 2030, 40% for buses, 30% for private cars, 70% for commercial vehicles and 80% for two and three-wheelers.
Why India is struggling to catch up with Chinese EV technology
Cost is the biggest hurdle for India’s fast growing EV manufacturers.
An average electric car in India costs around $18,000, which is much higher than the average of $6,900 for petrol and diesel cars. Similarly, electric two-wheelers cost between $965 and $1,724, as compared to the $413-551 range of internal combustion engine bikes.
“These price tags are high for a few reasons,” said Ashwini Tiwari, CEO of Pune-based EV tech firm Autobot India. quartz on email. “One is due to raw material imports and the other is due to costly batteries. If we can take care of both the elements by manufacturing them domestically then the pricing factor can be solved. ,
Gupta said India also needs better charging infrastructure and a nationwide network for battery swapping. In EV parlance, battery swapping is the process of exchanging a discharged battery pack for a fully charged battery pack.
China makes its first foray into India’s EV market
BYD has been operating in India since 2016, supplying batteries to an Indian company Olectra Greenwich, an electric bus manufacturing firm. Last month, it became the first Chinese company to announce plans to sell electric cars in India.
Several other Chinese EV companies, such as Better Power Company and contemporary Amperex Technology, have ventured into battery manufacturing and swapping in India.
But such projects involve thorny processes, thanks Sanctions Placed by the Indian government on Chinese investment. Earlier this year, for example, Chinese carmakers Great Wall Motor Failed to get approval for a $1 billion proposal to acquire and run the GM plant in Pune.
Despite these obstacles, Chinese companies have prospered at the expense of their Indian counterparts. India still imports about 70% of its lithium-ion Cell Requirements from China and Hong Kong. Indian firms are expanding their manufacturing capacityBut they’ve got a long way to go with their Chinese counterparts.
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