Daily Brief: EV Sales In India Look Set To Soar, So Long As You Count Two- And Three-Wheelers

Daily Brief: EV Sales In India Look Set To Soar, So Long As You Count Two- And Three-Wheelers

over 1 year ago3 mins

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A report out on Friday predicted a third of all vehicles sold in India will be electric by 2030.

What does this mean?

India’s been slower to embrace EVs than most other major markets, which won’t be helping the world’s third-biggest emitter of greenhouse gas reach its target of being net carbon zero by 2070. But that might change soon: a new report projected that foreign investment in the industry will rocket from $6 billion in 2021 to $20 billion by 2030, as globally established companies seek to make the most of the world’s fourth-biggest car market. Layer in some hefty government subsidies, and India could soon be cooking with gas – or, uh, electricity. In fact, the report predicts that Indian EV sales will pass 10 million – equivalent to 10% of the world’s EV sales – by 2030, way up on last year’s paltry 400,000. That’s not all cars, mind you: two and three-wheel EVs will likely lead the charge, as their four-wheel counterparts will still be too expensive for many of the country’s drivers.

EV sales mix

Why should I care?

Zooming in: Power up.

India will have to upgrade its sparse charging network if it really wants EVs to take off. After all, an electric scooter’s no use if there’s nowhere to charge it. But it’s got a long way to go: India’s proportion of charging stations to EVs was just 6%, lagging behind the UK’s 9% and China’s whopping 18%.

India EV charging
Source: Business Today

The bigger picture: Eco-consciousness costs.

But there’s a wider issue threatening EV adoption: inflation. See, carmakers – like everyone else – have been upping their prices recently, bringing the average cost of an electric car to $61,000. Now here’s the thing: the average price of a new vehicle – including non-electric ones – is $46,000, and that’s already out of reach for more than half of all Americans. That doesn’t bode well for electric car sales, and suggests EV adoption could be stuck in park until prices come down.

Keep reading for our next story...

Tesco's UK Sales Fell

​​Tesco image

Tesco gave a disappointing results update on Friday after its customers cut back a little.

What does this mean?

Looks like Brits have been taking Tesco’s “every little helps” motto seriously: they’ve been saving money by doing everything from making fewer car journeys to swapping pricey products for cheaper alternatives. That’s not quite what the UK’s biggest supermarket intended: Tesco reported a greater-than-expected 1.5% drop in UK same-store sales last quarter versus the same time last year.

Brits saving money

But while everyday customers kept their purse strings suitably tight, more caterers and businesses flocked to Tesco’s Booker wholesale business now that lockdowns are nowhere in sight. The segment boasted a 19% uptick in sales from last year, which – along with a solid performance from Tesco’s Central European stores – helped keep overall sales growth in the green at 2%. This year will still be tough, mind you: Tesco already warned in April that profits will probably be squeezed this year, as it plans to cut prices to keep customers from checking out cheaper rivals.

Why should I care?

Zooming in: Bigger is better.

Still, most analysts believe Tesco has enough size and sway with suppliers to survive the downturn better than any of its UK retail rivals. So far, so good: monthly industry data shows it’s consistently outperformed the wider market and Sainsbury's, Asda, and Morrisons – its three biggest rivals. And sure, German discounters Aldi and Lidl might’ve grown the fastest in the three months before mid-May, but Tesco still managed to expand its leading market share to 27.4%.

Grocery market share

The bigger picture: Fine dining.

Tesco said its product prices have increased by under 7%, but that might not last long: grocery researchers predicted this week that UK food price inflation would likely peak at 15% this summer, and stay high until 2023. You’ll probably feel the pinch: they predict the average family of four will spend $529 a month on groceries by January 2023, up from $487 this January.

UK food price inflation
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