Tesla’s competitor Fisker recently announced plans to enter the Indian auto market in July 2023. Fisker will sell its Ocean electric sport-utility vehicle (SUV) in India. Also, it is likely to begin manufacturing its cars in India. This will help keep the cost of its Electric Vehicles down in the country.
“Ultimately, India will go full electric. It may not go as fast as the U.S., China or Europe, but we want to be one of the first ones to come in here,” company’s CEO Fisker said per Reuters. The electric vehicles company wants to secure a first-mover advantage.
India’s electric vehicle (EV) ecosystem has been seen a lot of progress since 2015.
It was in this year when the country launched FAME scheme. Since then, there has been a lot of debate over the future of EVs in India.
Fisker to enter Indian automobiles sector
Despite several internal bottlenecks and challenges, it can be said that Electric Vehicles are the future. Moreover, India’s EV policy and regulatory framework are evolving. Fisker entering India can be a big game changer in the auto sector.
In 2015 when India launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, EVs were still considered an emerging technology.
However, a number of measures were taken to promote the adoption and growth of hybrid and electric vehicles in India. One can say that it will be a big time entry for Fisker as Tesla also eyes Indian auto market for EVs.
When it comes to statistics, in the last three years, more than 500,000 Electric Vehicles were registered in India.
India plans bigger for EV transition
India eyes to make its’ EV sales penetration of 70 per cent for commercial vehicles, 30 per cent for private cars, 40 per cent for buses, and 80 per cent for two and three-wheelers by 2030.
This will help India achieve its net zero carbon emissions target by 2070.
It is to be noted here that Fisker’s announcement comes just days after Tesla Inc put on hold its plans to enter the Indian EV market. The long-drawn battle of lowering the import tariffs didn’t get the desired results.
Fisker Ocean retails at around $37,500 in the US but importing it to India would add logistics costs and a 100% import tax as well.
Additionally, electric cars currently make up just 1 per cent of India’s roughly 3 million annual car sales.