After India and China brought a thaw in their relations, its impact has started being witnessed in the market too. This is the reason that India’s electric vehicle market is rapidly changing. Earlier, the segment was ruled by Tata and Mahindra & Mahindra, but Chinese companies have now started making a powerful entry in the segment to capture the business.
In the last couple of years, China-owned BYD and MG have surpassed South Korean and German companies. According to Economic Times, these companies have captured one-third of the Indian market share. Consumers prefer these companies because they offer better performance, advanced technology, and a good range of vehicles.
Now, other Chinese car-makers like Xpeng, Wall and Haima are considering entering the Indian market in this specific segment. The thaw between China and India would give an impetus to these companies to join the market. Experts are of the view that Chinese companies are not only offering better options to consumers but are also coming up with the latest battery technology, premium features, and swift product development.
MG Motor is ahead of other companies. As an early player, it became the biggest contributor among automobile companies associated with Chinese companies. They introduced feature-rich EVs at competitive prices.
The ET quoted JSW MG Motor India’s Chief Commercial Officer, Vinay Raina, saying, “Our pace of growth in India is driven by innovation designed around customer needs and a deep understanding of the local market.” Raina stressed that local-level production is essential to remain competitive.
These companies are gaining an advantage in adapting their vehicles to the Indian market through better coordination between their local and global operations. This is the reason they are able to introduce new models in India much faster than many Indian companies. One of the world’s largest EV manufacturers, BYD, entered the market later and has been expanding rapidly due to strong demand in the commercial and fleet segments.
Volvo Cars has made a special space for itself in the premium segment. Despite the company’s legacy is Swedish, China’s Geely owns the company. Even though Volvo’s sales volumes are low, but they indicate a rising demand in the luxury EV segment.
According to Jato Dynamics, the Chinese brands did not sell a single unit of battery electric vehicle (BEV) in 2019, but they have sold 57,260 cars this year till October.
Despite the steep jump, the Indian electric car makers are ahead in terms of EV growth contribution. This year, they sold 1,01,724 BEV units till October, compared to 74,442 units in 2024.
