2023 to be ‘power’ful year for car makers | The Financial Express

2023 to be ‘power’ful year for car makers

Barring Japanese, carmakers that are focusing on hybrid cars, almost every carmaker would have at least one electric car model in its portfolio.

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India has as many as 13 electric car models in the luxury space, and seven in the mass-market space currently. In 2023, this number is only going to go higher. Barring Japanese, carmakers that are focusing on hybrid cars, almost every carmaker would have at least one electric car model in its portfolio.

Gaurav Vangaal, associate director, light vehicle forecasting, S&P Global Mobility, told FE that at least six more electric cars will hit the mass-market in 2023.

The first of these will be Hyundai Ioniq 5, bookings for which will start on December 20 and the car will be showcased at the Auto Expo in January 2023. It will be Hyundai India’s second electric car model after the Kona EV. Even though the Ioniq 5 is a sister model to Kia EV6 (priced Rs 60-65 lakh), an auto analyst said the former is expected to be priced far lower because Hyundai will assemble it locally (the EV6 is a full import and attracts heavy import duty).

Other electric cars include Citroën C3 electric small SUV, Mahindra XUV400, MG Motor Air EV, Skoda Enyaq, and at least two electric cars by Tata Motors. While Tata Motors hasn’t confirmed, sources told FE that these will be the Altroz EV and the Punch EV.

Saket Mehra, partner & auto sector leader at Grant Thornton Bharat, told FE that if you include the luxury segment, there could be 10-12 new models in 2023.

“With consumers gradually gravitating toward more environmental-friendly solutions, and the government aiding the EV ecosystem within the country (from PLI schemes to boosting the charging infrastructure) to keep up with its ambitious target of EV sales accounting for 30% for private cars, the segment is expected to grow exponentially, propelling the new and upcoming launches across vehicle categories and price points,” Mehra said, adding, “The Indian auto market is expecting around 10-12 electric car launches in the coming year, with three-four launches in the range of Rs 10-15 lakh, around four launches in the range of Rs 20-30 lakh and four premium launches north of Rs 60 lakh.”

Mihir Sampat, partner, Bain & Company, told FE that by 2025, 25-30 new passenger EV models are expected, which will come via a mix of new players like BYD entering the Indian market, existing global OEMs bringing some of their EV models to India and Indian OEMs like Tata and Mahindra developing cars around their new EV architectures and platforms. “While a lot of these introductions will happen in 2024 and 2025 – by which time the Indian consumer will have a wide array of EV choices available and we will see the market take off — we can expect to see at least seven-eight models introduced in the next 12 months,” Sampat said.

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First published on: 19-12-2022 at 00:05 IST