Indian Economy News

Luxury auto companies are set to drive more electric vehicles in FY24

In FY24, over a dozen luxury electric vehicles (EVs), including sports utility vehicles (SUVs), are expected to be sold in India as automakers try to match consumer demand for environmentally friendly transportation with their product strategies.

The number of electric luxury vehicles among the 48 new passenger vehicle (PV) launches planned for the year through March, 2024 could reach 11, which would be a record high for a fiscal year. Models from Mercedes-Benz, BMW, Lexus, Audi, and Volvo's global lineup will be introduced in India. On the other hand, in FY23, out of the total 54 launched, only about six were electric luxury vehicles.

Demand for electric mobility is rising across categories, from scooters to premium automobiles, thanks to improvements in driving range and charging infrastructure that helps in addressing the major concerns about viability.

Industry estimates show that sales of electric luxury passenger cars increased by 142% in FY23, outpacing the market for luxury PVs by more than four times. Luxury automakers are coming up with plans to meet the growing demand for electric vehicles. These companies, which are sitting on a large backlog of orders, expect electric vehicles to account for at least 10-15% of their total sales in the next 2-3 years.

Mr. Santosh Iyer, Managing Director of Mercedes-Benz India claimed that the company will be launching new battery electric vehicles (BEVs) from their global portfolio in India in the next 8-16 months. The company has forecasted that one out of every four Mercedes-Benz sold in India will be a luxury BEV. Similarly, Audio is estimating approximately 15-20% of its sales in India to come from electric cars in the next few years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.