AUTO PUNDITZ

Indian Battery Electric Vehicle Market Analysis Report - Q1 2022

Highlights

  • Indian BEV mass-market share reached to 1% in Q1-2022

  • Tata Motors command 95% of BEV mass-market share in Q1-2022

  • Tata Nexon EV continues to be the best-selling BEV product

  • Tata Nexon EV outsold Nexon diesel in Q1-2022

Industry

Indian BEV passenger vehicle mass-market has posted highest ever quarterly sales in Q1-2022. This is largely contributed by Tata products namely – Nexon EV and Tigor EV. Introduction of right BEV products at right price is fueling the EV demand in India.

Overall market share of BEV products reached to a considerable 1% level in Q1-2022. Demand for BEV, in from substitution of internal-combustion-engine, mostly as secondary vehicle, does exist, due to various demand incentive available from the Union and the state governments. However, manufacturers do have to come forward with right product(s) at right price to increase penetration of BEV in Indian PV market.

Manufacturer

As of now there are only handful of manufacturers in Indian BEV-mass-market. All using their current internal-combustion -engine based vehicle platform in modified form, as donor, rather than using expensive purpose-built EV platform, since market is in nascent stage of growth.

  • With 95% market share, Tata continues to be the market leader with right product at right price, way ahead of competitors

  • MG has recently launched facelift of ZS EV with improved range and power, and lost considerable market share in the transition due chip shortage

  • Hyundai’s lone CKD product – Kona EV – with small footprint has proved to be too expensive for mass adoption

  • In absence of right product portfolio expansion on time, Mahindra has lost the opportunity to capitalize on early lead

Body style

There are only sedan and SUV/Crossover body styled products available in Indian BEV mass-market. Sedans are available at a lower price range, and seems to be more accessible, however, SUV/crossover body style continues to be the favorite flavor in Indian BEV market as well, since introduction.

Product

Tata Nexon continues to be the best-selling BEV product followed by Tata Tigor in Q1-2022, each achieving highest sales figure since introduction. MG ZS EV has lost volume in facelift transition and ongoing chip shortage situation.

Hyundai Kona EV and Mahindra Verito EV seems to have lost the plot.

Tata Nexon EV has outsold Nexon diesel in 2022.

Tata Tigor’s fuel mix is highly diversified now, low running cost advantage has benefitted CNG and electric version.

Tata Tigor BEV case study

What is interesting to note is improved sales of Tata Tigor EV in recent quarters. This can be attributed to new higher battery capacity and more powerful electric motor added to Tigor facelift in Q3-2021. New drivetrain with more power and torque on offer, combined with longer range and fast charging capability has made Tigor more practical and usable, at relatively accessible price point. Changed value proposition always alter market potential for any product, and so is the case of Tata Tigor EV. Manufacturers need to closely focus on the value proposition of BEV products for long term success.