The electric vehicle (EV) market in India is expected to hit over 63 lakh unit mark per annum by 2027, according to a report by India Energy Storage Alliance (IESA). The biggest cost factor in an EV is the lithium Iron Battery ( ~ 40%). In the last 5 years alone the cost of the battery has come down from 250$ per kWh( the standard metric) to 120$ per kWh. This is phenomenal as the holy grail to compete with standard engines is ~ 90kWh
Some of the interesting Global Business models evolving in the Electric Vehicle space;
EV Sales + Fast/Home Charging – Most Electric car makers have taken this route. The business model is Car + Tie-up with electricity service providers. Globally BYD and Locally Tamo are market leaders. The minus points are lack of infrastructure and price points being exp for developing markets
High-End EV sales – Tesla being the sole market leader. Contrary to popular opinion, Tesla made more money this year selling regulatory credits and buying Bitcoin (bwah) than selling cars. The market is evolving and margins are thin
BAAS – Battery as a service – Very Promising, especially for India. You buy the car without paying for the battery. Just like filling up petrol in a car, one can go to the nearest station and swap for a fully charged battery
Leasing – India’s own Tesla – Pravaig is going the other way and will be only leasing cars to corporates.
To know more about the future of EV industry and current trends in India, you can read this article: https://auto.economictimes.indiatimes.com/news/industry/electric-vehicle-market-in-india-expected-to-hit-63-lakh-units-per-annum-mark-by-2027-iesa/79878253
