Asia is the biggest producer of Electric Vehicles (EVs). It is also one of the biggest markets for electric vehicles. Read this article to learn more.
S&P Global Ratings have published a report recently. In the report, following two points have been put forward following points:
- Asia continues to be the largest producer of EVs and also the biggest market for the same.
- India, the third largest auto market, is a significantly important target market. However, due to the low domestic take-up of this new opportunity, there are low chances of any Indian company holding a significant share in the market.
- Tata Motors is currently dominating the market of India with 80% market share.
EVs and Asia:
- It is hinted in the report that Asia is going to be the center of the Electric Vehicle era that is revolutionizing fast. This continent will become one of the first of its kind in making EVs.
- It is because Asia is the biggest producer of raw materials such as EV batteries and the material required to manufacture an EV.
- Asian countries serve the best conditions for the growth of the EV segment as they provide a supportive environment. Indonesia is rich in nickel, china provides supportive policies for the growth of the segment, and countries like South Korea, China, and Japan are well-versed in the technology required in the segment.
- It is also essential to keep in mind that Asia is the biggest market for EVs. Thus, everyone should keep an eye on Asia for the EV segment.
The growth of EVs in India:
- India holds the position of the third-largest auto market for the sale of EVs. It makes them the ripe target for companies in the EV segment.
- It is seen that the growth of the EV segment is starting a little shaky. Even though the sales of EVs have doubled compared to last year, EV sales were only 2% of light vehicles sold throughout the country.
- It is also seen that the EV has spread its wings only to two-wheeler or three-wheeler vehicles only.
- The scope of growth in the EV segment of India is very high. It is said that necessary infrastructure such as charging places for EVs is essential for the growth of the segment.
- Due to the lack of such supporting features, the growth of EVs at the domestic level is slow. It will impact the position of Indian companies in the segment. It seems unlikely for an Indian company to dominate the global market of the Electric Vehicle (EV) segment.
Tata Motors in the EV segment:
- Currently, in India, the EV segment is dominated by Tata Motors. The company has more than 80% market share in India.
- The company is expected to hold on to the position despite competition from companies such as Hyundai, and Mahindra and Mahindra Ltd.
- Tata Motors manufacture EVs by sharing infrastructure with their ICE segment. It reduces their funding requirement for the EV segment.
