Will EV Be The Game Changer In 2023 In The Auto Segment?
Overtime, Electric Vehicles (EVs) have gained the trust and confidence of people, especially because of how environmentally friendly they are. EVs are going to rule, not only in 2023, but in all the subsequent years
Electric Vehicles have cemented their place in the auto industry. With the people being skeptical about their efficiency, the survival of EVs in the auto industry was doubtful initially. But, overtime, they have gained the trust and confidence of people, especially because of how environmentally friendly they are. The introductory low price and low battery cost also acted as a catalyst in boosting the growth of the Electric vehicles in India.
Since their advent in the market, a variety of different models have been launched, dynamically meeting the requirements of people and overcoming the shortcomings they initially had. EVs have significant contributions towards solving the major environmental concerns, which is why this segment is receiving support from the government authorities as well.
If we look at the numbers, India recorded a growth rate of 686 per cent in the first quarter of 2022. The growth rate indicates that people are readily embracing the concept of EVs and that time is not too far when EVs will be ruling the auto industry. Also, the market share of EVs is projected to touch 3.8 percent by 2027. We have been able to witness this shift in the industry majorly because of the transforming supply chains and strong physical infrastructure which helps in boosting EV adoption in India.
According to FADA (Federation of Automobile Dealers Associations) statistics, the rapidly expanding EV sales indicate that there will be more in the coming years. EV retail sales increased by 218 per cent in fiscal year 2022, with over 4.29 lac EV units sold, setting a new target for 2023. Even while the numbers are encouraging, there is still more work to be done.
Keeping in mind the incredibly good performance of 2022, makers of EVs are looking forward to having an even better performance in 2023. Many manufacturers firmly believe that EVs will be the game changer in the auto industry in 2023. Let us see what are the factors which indicate towards a promising future of EVs in the auto industry in 2023. So, in 2023, we are likely to witness one of the major problems of lack of EV charging stations being eradicated.
1. Wide spread electrification: India is soon expected to become the global leader in the EV market, considering the fact that India is expected to be electrified the fastest. This widespread electrification will play a very fundamental role in transforming the automobile industry and opening the doors of new opportunities.
2. AI and Internet of Things: In this era where there is hardly any sector which has been left untouched by Artificial Intelligence and internet, EV manufacturers are also going to use AI and Internet of things to fasten EV's acceptance among people. Manufacturers will use the power of the internet and AI to produce appealing and well performing EVs in India.
3. Launch of new models: A plethora of factors are making these vehicles an attractive option for the Indian consumers. A variety of new models which are lined up for launch in 2023 including SUVs, plug-in hybrid electric vehicles, electric pickups to name a few, are going to step up the game in the automobile industry.
4. Active role of Global Players: Some of the major global players are stepping into the Indian market launching their vehicles which have been designed exclusively, keeping in mind the requirements of the Indian market. In the upcoming year, we are going to see the major global players actively playing their role in the growth of EVs.
5. Robust EV charging infrastructure: The charging infrastructure is not that good as of now, which is why some people hesitate to buy electric vehicles. A strengthened charging infrastructure is essential for the growth of EVs in the industry. 2023 is predicted to see some of the major industry players making efforts to solve the problem of charging in the industry, as many people who frequently go on road trips would face a lot of problem in charging their vehicles, given the limited charging spots available across the country. The implementation of battery swapping or battery charging stations is alone going to do a lot to increase the adoption of EVs among people by eliminating the existence of its major drawback which is lack of battery swapping or battery charging stations.
6. Technological and production advancements: EV manufacturers are focusing on using advanced technology and production methods which can help in boosting the growth of more vehicles in the automobile industry. The use of the latest technology also helps in making EVs affordable and accessible. This directly or indirectly helps in increasing market acceptance.
7. Avenues for leasing: Vehicle leasing is going to be the new norm for EV commercial fleet deployment. Having huge potential and opportunities in India, but their growth has been quite slow paced because of the lack of availability of leasing options. The avenues for leasing are majorly going to offer lucrative growth opportunities in this segment. This is another reason why 2023 seems to be a good year for the growth of EVs.
Wrapping It Up
India's goal is for all new automobiles to be zero-emission by 2030. While we may have set an optimistic objective, we expect that a significant portion of vehicle sales will continue to be powered by petrol/diesel in the future. Between now and then, the electric vehicles sector will necessitate investments from private, public, and government enterprises in areas ranging from charging infrastructure and energy storage to research. Overall, 2022 was a watershed point for the EV sector, with increased sales, important regulatory reforms, and indigenous businesses assuming leadership of leading the technology and commercial front.
Keeping the above-mentioned points in mind, it won't be wrong to say that EVs will be utilising most of their potential in 2023 to prove their mettle in the auto industry. EVs are going to rule, not only in 2023, but in all the subsequent years.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house