Myth - Electric car sales are booming in India
Maneesh Konkar
Driving Sales & Marketing Business Growth | Sales, Facebook & Google Ads Trainer | Online Courses | 75+ clients | 25k+ Trained | Contact me for Corporate Training & 1 to 1 Coaching
Most people think electric car sales are booming in India.
Not really.
Hybrids are spoiling the party.
& now Bajaj Auto Ltd is disrupting the 2w market with a cng hybrid bike.
Given the media commentary, most people think hashtag#electric cars are crushing ICE (internal combustion engines) cars.
Globally, that may be true.
In India, electric cars are barely 2% of the market.
And the big surprise is hybrid cars.
Mint reports that in the last 5 quarters, hybrids have BEATEN electric in two quarters (Q1 2023 & Q4 2023)And are neck to neck in another two quarters (q1 2024 and q3 2023).
And this is when hybrids are far more expensive.
Why?
One reason is the gst rate.
the gst rate on hybrids - 43%. the gst rate on electric cars - 5%.
While ICE engines still dominate, the market may change fast.
Why do we feel so?
Because Indians are not price sensitive, they are value sensitive buyers.
And total cost of ownership is what people look at.
Not just price.
And now Bajaj Auto Ltd has launched the "Freedom 125 CNG".
The very first petrol cng motorcycle in the world.
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Starting from Rs 95k. A 2L cng tank & a 2L petrol tank. Range 330 km.
The real winner will emerge from a TCO (total cost of ownership) perspective.
car&bike reports - when running on CNG, the #Freedom will slash daily running costs by 50 per cent, lower CO2 emissions by 26 per cent.
This will enable owners to save up to Rs 75,000 in fuel costs over 5 years, compared to a pure-petrol 125 cc motorcycle.
That's Rs 15k savings per year.
The base versions of Hero MotoCorp #splendor & Honda Motorcycle & Scooter India Pvt. Ltd. #shine are priced at approximately Rs 80k.
That's 15k lower.
So from a TCO point of view, a Rs 15k extra investment in the #freedom 125 is recovered in just 1 year.
That leaves Rs 60k in savings over the next four years.
One more point is the number of cng pumps - about 6000 of them, mostly in Maharashtra & Gujarat.
That's where Bajaj will be focusing its sales efforts initially.
Maruti Suzuki India Limited in its ads for #invicto & #GrandVitara claim a range of 1200 km on a full tank.
Guess in India it boils down to TCO.
And just yesterday, UP has announced zero registration fee on strong hybrid cars.
This will bring down prices of strong hybrids by Rs 2 - 4 Lakhs.
Who benefits - Maruti Suzuki India Limited #GrandVitara, #Invicto & Toyota Motor Corporation #Hyryder
Interesting times ahead.