When Warren Buffet’s Berkshire Hathaway invested $232 million into China’s BYD, it was a nascent startup that had just started selling electric vehicles. Fourteen years on, Berkshire’s stake is worth $7.5 billion dollars and BYD has dethroned Tesla as the world’s biggest EV maker by sales.
Between April and June, BYD shipped 3.54 lakh EV units, an increase of 266% year-on-year, while Tesla’s global sales grew 27% to over 2.54 lakh units. It also overtook South Korea’s LG Energy as the world’s second-biggest EV battery manufacturer, behind China’s CATL.
The Shenzen-based group is now aggressively pushing into foreign markets, including India where it is set to unveil its first e-SUV soon, with deliveries beginning in January.
The company has been selling its electric MPV e6 to corporate and fleet customers in India since November 2021. Its upcoming model, the Atto3, will also be assembled at BYD’s plant near Chennai which has an installed capacity of 10,000 units per annum.
Tigor and Nexon EV maker Tata Motors held a whopping 85% share of the passenger EV market in FY22. They were followed by China’s SAIC-owned British brand MG Motors at 11.5% with its ZS EV.
According to the Federation of Automobile Dealers Association, out of the 2.72 million passenger vehicles retailed in India in FY22, EVs constituted just 17,802 units or 0.65%. However, this represents a 257% jump over FY21.
Sanjay Gopalakrishnan, Senior VP, Electric Passenger Vehicle Business, BYD India says we have our own technologies that give us an edge. BYD India will initially sell top-of-the-line premium EVs. By 2030, we are aiming at a 40% e-PV market share.
India is among a handful of countries that support the global EV30@30 campaign, which aims to have at least 30% of new vehicle sales be electric by 2030. BYD’s entry is a sign of the growing interest of global carmakers to gain a foothold in India’s EV market.
After launching Kona EV in 2019 to test the market, Hyundai India is getting ready to launch its
first electric crossover, Ioniq 5, this year.
The South Korean firm has also started developing a small electric car for India as part of its plan to launch six EVs in India by 2028. Hyundai’s sister company Kia launched its first electric car in India, the premium crossover EV6, recently.
Sweden’s Volvo debuted its electric compact SUV XC40 Recharge in India in July. Tata’s electric SUV Curvv will hit the market within the next two years while MG Motor will launch an affordable mass-market EV next year.
Volkswagen is also looking to sell its first electric car, the ID.4 SUV, in India in limited quantities next year. Mahindra & Mahindra will launch five electric SUVs for both domestic and international markets starting in 2024. Tata Motors plans to launch the Avinya, its pure electric car, in 2025.
Luxury car firms are not holding back either. Mercedes-Benz will become the first company to assemble a luxury EV in India as it launches three electric cars this year.
Audi India’s launched its maiden EV offering e-tron last year. In a span of six months, BMW launched three electric models in India - the iX SUV, MINI hatchback and i4 sedan. Porsche has brought its all-electric Taycan and Jaguar its I-PACE.
American EV startup Fisker is aiming to launch two EVs in India. Experts say the pace of electrification in the luxury segment is expected to be much faster than the mass car segment
Sanjay Gopalakrishnan of BYD India says 45,000 to 50,000 EV cars could be sold in India this year. Only the initial 1.5% to 2% EV adoption takes times. EV adoption will pick up when resale market emerges.
At the current pace, EVs could make up as much as 1.4% of total domestic passenger vehicle sales this year signalling an increase in adoption. With more than a dozen OEMs vying for India’s EV passenger vehicle market, first movers like Tata Motors and MG Motors are set to face some serious competition.
Although several of them are still laying the groundwork, Indians will see a wide range of EVs across price points 2-3 years down the line. Car manufacturers are hoping that by then, the Indian EV passenger vehicle market will have come of age.
 "Is the stage set for an EV boom in India?")
