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Electric PV space to witness exciting offerings domestically; interesting times ahead!

ICICIdirect Research 06 Apr 2022 DISCLAIMER

What’s buzzing:

Electrification is gaining traction in India with disruption in the 2-W and 3-W space quite evident amid high-tech superior offerings by new age start-up OEMs. In the passenger vehicle (PV) domain, the offerings as of now are limited to Tata Nexon (battery size: 30.2 KWhr, certified range: 312 km, price: ~Rs 15 lakh), MG ZS EV (battery size: 50.3 KWhr, certified range: 461 km, price: ~Rs 24 lakh), Hyundai Kona (battery size: 39.2 KWhr, certified range: 452 km, price: ~Rs 24 lakh) and Mahindra E-Verito. Domestic OEMs, however, have committed an impressive line-up of vehicles in the EV domain with Tata Motors targeting 10 EV models by 2025 (existing coverts+ born electric), MG already launching an updated ZS EV variant and M&M geared up for eight product launches in the electric SUV space by 2027.


Tata Motors recently unveiled its new concept E-SUV Curvv, which would be launched as EV first then with ICE powertrain option, along with features like dual screen setup and panoramic sunroof. It is slated for commercial launch in about two years and will introduce India to new coupe styled SUVs, which have a sporty stance and rimless doors. Also, as per media reports, a leading PV player domestically expects electrification in the PV segment to accelerate and achieve an inflection point in 2025-27 at ~20% penetration levels with ultimate target being envisaged at ~50% penetration by 2030 amid improved EV ecosystem and significant price parity.

Our Perspective:

Electrification is a reality amid constant scrutiny faced by the automobile space for controlling emissions. Global OEMs have set an ambitious 100% electrification target by 2030-40 and are spending aggressively to meet the deadlines in this domain. Domestically, with government thrust and support on developing the requisite infrastructure, even domestic OEMs are charged up to play a leading role in electrification. Media reports suggest that even the industry leader in the PV space has now set up a dedicated team for e-mobility and committed ~US$2 billion capex spend on manufacturing EVs and their associated batteries. With upcoming launches in the form of Electric Altroz, updated Nexon from the Tata Motors slate and e-KUV 100 in CY22 and e-XUV 300 in CY23 from M&M, these are interesting times with affordable EV offerings around the corner.

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