The most crucial for electric vehicles (EV) is the external ecosystem, or more precisely the infrastructure which is often closely linked to the government's various supporting measures. India has a FAME-II program, an incentive program aiming to accelerate the spread of eco-friendly vehicles. The program's total budget is INR100 billion (US$1.4 billion), of which 86% will be subsidies for vehicles and 10% for charging facilities.
Before studying India's electric vehicle (EV) market, you may need to understand the Indian modes of transportation. According to NSSO, 62.3% of Indians prefer public transport such as buses and trains, and 46.7% of Indians use three-wheeled tuk-tuk. During weekdays 15.6 % of Indians regularly take trains while 9.8 % of them take a taxi. We can observe the future means of transport for Indians from the perspectives of "new technology" and "mode of operation".
Startups are the growing force of India's economy. One of India's unicorn startups launched Ola Cars online car-shopping platform, while electric vehicles (EV), especially two-wheelers, are seeing increasing sales in India.
Who is the leader in the Indian car market? Suzuki accounts for almost 50% market share of the world's fifth-largest market of 2.71 million cars per year. Suzuki is not a top-tier brand in Japan. The key factor of Suzuki's success in India is that Suzuki Motor embraces a one-stop-shopping service strategy for the Indian market from car manufacturing to maintenance, insurance, and driving training courses. On top of that, its integration in the upstream and downstream of supply chains along with half a century of long-term in-depth operation in the Indian market is unrivaled. Perhaps owing to its satisfactory operation, Suzuki Motor is not active in the electric vehicles (EV) market.
India's huge population and potential economic growth have attracted investments from foreign IT enterprises, such as Samsung, Netflix, and Oppo, while local large enterprise groups such as Tata and Reliance have been pushing for innovations across industries in India with increasing investments as well.
India's per capita income is far lower than China's. Raw materials such as steel, coal and cotton are produced in India and shipped to China with processed products sold back to India. China's mobile phones, TVs and various commodities are sweeping the Indian market, with a trade deficit of more than US$50 billion a year in favor of China, partly fueling the tensions between the two countries.
It may be difficult to understand India. I've been to India almost 20 times, but this is the first time that I've tried to explore India from the perspective of electric vehicles (EV). How can we ignore the world's fifth-largest car market, as India looks forward to the opportunities for EVs and V2X?
Mergers and acquisitions (M&A) in Asian countries (excluding Japan) during the first half of 2021 reached the second highest in history with a 69.6% year-on-year increase in value to US$648 billion, according to UBS citing data from Dealogic.
India's Reliance Group might have to increase subsidies for its low-cost smartphone JioPhone Next more than it has previously estimated due to shortages of semiconductors and higher costs of components.
Deloitte surveyed 1,200 executives from British, American, Japanese, and Singaporean firms and found out these companies decided to invest or expand investment in India because of the country's domestic market, according to Reuters and Hindustan Times.