India’s EV Market Going Nowhere

Demand for electric cars in India is barely moving and won’t accelerate until prices drop and the country’s network of charging stations expands dramatically, says Bloomberg News.

The news service estimates that India’s 150 million drivers have purchased a combined 8,000 EVs over the past six years. Maruti Suzuki India Ltd., which controls half the Indian new-car market, doubts the pace will improve over the next 2-3 years.

“Affordability,” says Maruti Chairman R.C. Bhargave, “is just not there.” The company plans to launch its first all-electric model next year.

Hyundai Motor Co.’s just-introduced Kona electric crossover vehicle (pictured) illustrates challenge. the Kona EV retails for $35,000 in India, more than four times the average transaction price of a conventionally powered new car. The median income for would-be car buyers in the country is $2,000. Bloomberg says Hyundai sold only 130 of the cars through August.

A lack of EV charging stations is hurting demand too. India has only about 650 such facilities nationwide, according to Bloomberg. That compares with an estimated 446,000 in China, 170,000 in Europe and 69,000 in the U.S.

Prime Minister Narendra Modi has pledged $1.4 billion to help jumpstart the market. But India’s government has struggled even to get its own agencies to put them into their fleets.