Chinese brands grab one-third of India’s electric car market

Chinese companies are upping the ante in India's EV market

The stage is set for an intense battle between home-grown legacy brands and cash-rich Chinese heavyweights for supremacy in the Indian electric car segment.

Chinese or brands backed by Chinese companies have upped their presence in India in the EV space over the last 12-18 months through new product launches and steady expansion in the number of showrooms.

According to registration-based retail sales data shared by the Federation of Automobile Dealers Association (FADA), one in every three electric cars sold in the country is manufactured by a company with a Chinese connection.

JSW MG Motor, BYD and Volvo controlled 33.3 percent of India’s electric passenger market, which since 2020 was the near monopoly of Tata Motors with a peak share of around 85 percent, a few years ago.

Between January and October, the three companies more than doubled their sales, recording a total volume growth of 165 percent compared to the same period of the previous year. The growth in the electric passenger vehicle (PV) segment was driven to a considerable extent by the Chinese companies.

While the total electric PV volume during January and October grew 87 percent to 136,610 units, the more than doubling of volumes by the Chinese brands boosted growth. Excluding the Chinese brands, the growth for the same period drops to 63 percent.

The growth in demand for EVs has dwarfed the internal combustion engine (ICE) segment. The ICE segment posted a fall of more than 1.4 percent in the six months ended September,  according to data shared by the Society of Indian Automobile Manufacturers.

Continued competition

Dutch-headquartered carmaker Stellantis, which is an agglomeration of companies of Italian, European and American heritage, is keen to bring a Chinese brand to India from its bouquet of brands.

Hangzhou, China-based electric vehicle brand Leapmotor has been finalised for launch in India and Stellantis executives are zeroing in on product, powertrain and launch timelines. Leapmotor is partly owned by Stellantis.

Mumbai-based JSW has joined hands with China’s third largest automaker, Chery, to bring passenger vehicles under its own brand. Chery will supply technology, vehicle platforms and components to the venture. The debut is set for 2027.

JSW’s existing joint venture with China’s SAIC for MG Motor India will see multiple new launches to maintain or improve its position as India’s second largest electric passenger vehicle maker.

Overall, JSW has planned an investment of Rs 26,000 crore and intends to introduce up to 25 new models between 2025 and 2030. These will comprise EV, hybrids and range extender vehicles from price points starting at Rs 800,000.

With the recent improvement in China’s relations with India, its biggest carmaker BYD is hoping to secure a green signal to expand operations in the country. From an import-dependent operation, BYD hopes to have a manufacturing plant, which will allow to not just price its products effectively but expand its portfolio.

BYD is India fifth largest electric carmaker, selling 500-550 units a month. Its price positioning is higher than its peers, with its entry model priced at Rs 25 lakh, while its top model costs Rs 53 lakh. The company has expanded its network to 47 showrooms across 40 cities.

Tesla entry

After a grand entry in July, Elon Musk-led Tesla has got off to a quiet start. The US-based lelading EV company, which debuted with just one model, Model Y, retailed  104 cars in August and September. The company recently opened a 'Tesla Centre' in Gurugram as part of its retail expansion strategy. The starting price of the Model Y is Rs 60 lakh, which competes with offerings of BMW, Mercedes and Volvo.