India’s electric vehicle market has seen a surge in demand over the festive period. Sales inquiries and bookings have exceeded supply meaning some models are selling faster than they can be supplied.
The festive period is always a key time of the year for the automobile industry in India. Customers are looking to purchase new vehicles due to offers and the end of year purchasing decisions. It has been pushed further with the increasing popularity of EVs.
The popularity of EVs is increasing due to lower running costs, increased charging networks, increased models and increased awareness of EVs. Customers are also starting to look at EVs for day to day use, especially in urban areas where it is easier to charge them at home.
Whilst there has been a huge increase in demand for EVs, this has caused some issues with supply. If there are more bookings than vehicles readily available then this could cause delays for customers wanting to purchase a specific model. This can vary depending on the vehicle, variant, batteries, location and volume.
Dealerships have found it important to set realistic expectations for customers. Delays can occur and may cause issues for those wanting to purchase during a lucky time of the year. Dealerships will also need to work closely with manufacturers to ensure they have enough vehicles allocated to meet the increase in bookings.
Automakers will find it important to match their volume to the current demand. Increasing volume can help with reducing delays but also needs to consider battery availability, parts, logistics and production. This can cause issues in getting extra vehicles to the dealerships.
With the increase in popularity, EVs are becoming a large part of the passenger car market in India. Both traditional manufactures and new EV brands are looking to expand their offering. This means there are now more options available to customers than ever before. With competition increasing, timely deliveries and good after sales may become key factors.
Overall the high demand over the festive period shows there is still interest for EVs within the Indian market. It will depend on how much manufacturers can turn bookings into actual sales.
Moving forward automakers will need to manage the increase in demand of EVs. If they can improve supply to match the demand then they will be able to reduce delays and serve a higher amount of customers wanting to switch to EVs.