No Indian company is expected to achieve a significant global share in the EV market in the near future because of slow domestic adoption, warns a report by S&P Global Ratings.
Image Source: Shutterstock
According to a report by S&P Global Ratings, India holds great potential as a target market for electric vehicle (EV) companies due to its status as the world’s third-largest auto market. However, slow domestic adoption means that no Indian company is expected to achieve a significant global share in the electric vehicle market in the near future.
The report emphasizes that Asia will continue to dominate as the largest producer and market for electric vehicles, EV batteries, and EV battery materials. It predicts that the continent will play a central role in the electric vehicle era.
While EV sales in India have more than doubled in the past year, they still represent less than 2% of total light-vehicle sales. Furthermore, the majority of electric vehicles in India are in the two- and three-wheeler segments.
The report highlights the crucial role of developing a robust charging infrastructure to drive electric vehicle adoption. Without substantial progress in domestic EV uptake, no Indian company is expected to establish a significant global presence in the electric vehicle market.
S&P Global Ratings notes that Tata Motors currently leads the segment of electric vehicles in India, holding over 80% of the market share.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.