CHART OF THE WEEK 📈
What’s the Story?
3 million - those were the sales of New Energy Vehicles in China last year, which is 11.4% of the total vehicles sold.
That’s more than 1 in every 10 vehicles sold last year. However, that pace is increasing, and how!
Out of all the vehicles sold in the month of August 2022, 28% were new energy vehicles; that’s almost 3 out of every 10 vehicles.
In this growing pie, Chinese domestic players had a whopping 80% market share. International players (GM and Tesla) had a small 20% share in the EV market.
This is a complete reversal from what was seen earlier. In the traditional combustion engine cars, foreign players ruled in China.
Perhaps India Is on a Similar Track
India seems to be going along the same lines. Fuelled by the government’s policy intervention, innovative battery-swapping schemes, and the entry of a flurry of new players with multiple models, electric vehicle (EV) sales in India have been growing at a rapid pace.
Despite starting from a low base, overall EV sales increased from 1.3 lakh units to 4.3 lakh units in FY22 (more than 200% growth). Total EV sales were at a mere 56,399 units in FY17.
Although these numbers sound big, EV sales are at a minuscule 2.4% of the total vehicle sales in FY22. However, the speed at which EV sales are growing in India is skyrocketing.
Much like China, India’s EV market is controlled by domestic players and not international ones:
The Indian market is dominated by Tata Motors, which has more than an 80% market share in the four-wheeler EV segment.
Surprisingly, the market leader of traditional combustion engine cars, Maruti Suzuki, hasn't even started selling EVs in India. But there’s something big brewing there.
Maruti Suzuki has already set up a mega factory for EV batteries in Gujarat, which will be fully operational by 2025.
Batteries are the most expensive part of any EV, and with a large-scale factory set-up, Maruti sure will be able to replicate its low-cost strategy into EVs as well.
Are you excited about the EV Revolution?