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Driving change: India’s luxury electric car revolution

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Electric luxury cars represent the epitome of automotive excellence, blending the opulence of luxury vehicles with the eco-consciousness of electric power.This segment has seen significant growth and innovation in recent years both globally and in India. Automakers’ investments, government policies, awareness and acceptance, and technological advancements are some of the factors that have imparted momentum to the growth of electric cars in India.The recent events collectively represent a historic shift in India’s automotive landscape, signalling a transition towards sustainable mobility and the mainstream acceptance of electric vehicles, including luxury models.

In a recent initiative, the Government of India has greenlit a strategic policy aimed at positioning India as a prime manufacturing hub for electric vehicles. Under this policy, import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million, a move aimed at attracting major global players like US-based Tesla. This move indicates the government’s ambition to make India a hub for electric vehicle manufacturing.

Speaking on the sidelines of the 2023 annual conference in Ingolstadt on Tuesday, March 19, 2024, Andre Konsbruck, Vice President of Sales Overseas at Audi AG stated that more than 50 percent of luxury cars sold in India by 2028 will be electric vehicles and hence the German carmaker is very actively looking at localising electric vehicles in the country. The statement from Audi’s global boss underscores the increasing significance of electric mobility in the Indian automotive market.

Electric passenger vehicle sales grew 114.71 per cent to 82,105 units last year against 38,240 in 2022, according to data released by the Federation of Automobile Dealers’ Association (FADA). The global luxury electric vehicles market size was valued at USD 158.8 billion in the same year and is projected to grow at a compound annual growth rate (CAGR) of 17.7% from 2023 to 2030. This trend reflects both evolving consumer preferences and regulatory measures promoting cleaner energy alternatives. As major automakers adapt their strategies to accommodate this transition, it signals a transformative phase for the Indian automotive industry, with electric vehicles poised to play a pivotal role in shaping its future landscape.

Some of the other trailblazers in this luxury EV sector bring their unique blend of style, performance, and innovation to the table. On one hand, we have the Rolls Royce’s Spectre, touted the world’s first super luxury EV car, it is probably the quietest, smoothest, softest with the most space Rolls Royce ever built. Adding greater diversity to this spectrum is the Taycan, the first all electric Porsche and a new breed of sports car.

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