Renault, Skoda queue up for EV market

With a massive population of around 1.4 billion, most of whom are without a vehicle, the growing economy of India offers the most lucrative market for automobile companies.

New Delhi, Jan 11: Now that India is the third largest manufacturer of automobiles, the market size has swelled up and demand for the electric vehicles has also gone up. Needless to say global auto giants like Renault and Skoda are also eyeing Indian market for it is not just lucrative but has a lot of promise. This is happening despite the fact that Elon Musk's Tesla is still not present in India.

Moreover, since the Indian government has paid a lot of attention to eco-friendly transportation under 'Make in India' mission, the companies that are into electric vehicles have received policy favours. No automobile company wants to miss the golden opportunity that the Indian market presents and the policies that the Narendra Modi government has brought in to promote electric vehicles.

Additionally, there is hardly any doubt that electric vehicles are the future and with the mammoth size of the India market, no automobile company would want to miss the opportunity. This is the time for automobile giant companies to invest in India under Make-in-India initiative.

Massive Indian automobile market

With a massive population of more than 1.4 billion people, most of them without any vehicle, a growing economy, India offers the most lucrative market for automobile companies. Despite the fact that there was a pandemic that hit almost all sectors not just in the world but India as well, there has been tremendous recovery in demand led manufacturing.

Due to higher demand the production of automobiles also went up and the country received a massive growth in vehicle sales. For instance, whereas 4.4 million cars were sold in 2018, the numbers fell to below the 3-million in 2020 only to recover in 2021 when the auto companies sold 4 million units. In 2022 the numbers increased remarkably well to at least 4.25 million.

EV-friendly policies attracting global firms

Since the Indian government has been trying to bring in environmentally friendly vehicle policy, it has placed this as a priority in its 'Make in India' scheme. Especially, in the era of climate change, electric cars are gradually finding a lot of traction not just in the developed world but in India as well. Therefore, even the Indian government has brought in policies to bring in eco-friendly car makers.

With the favourable policies in place, the Indian government has been able to entice companies like Skoda and Renault who are willing to up their production units in India. Not just the lucrative subsidies to attract maximum investments, the overall growth prospects is also a reason that these companies are queuing up.