Frost & Sullivan: India a key market for hybrid, electric CVs

India is emerging as one of the world’s key markets for hybrid and electric medium-heavy-duty trucks and buses, says Frost & Sullivan. In fact, the market is expected to produce 32,000 medium-heavy-duty hybrid and electric CVs in 2020.

The reasons for this are changing market dynamics and customer perceptions, making buyers look increasingly at new vehicle technologies. According to an analysis by Frost & Sullivan entitled 'Strategic Analysis of Medium- to Heavy-duty Hybrid and Electric Commercial Vehicle Market in China and India', component revenues from India will reach $212 million by 2020, i.e 11 percent of global component market.

Driven by energy price volatility and rising consumer awareness, the market for such vehicles is experiencing considerable momentum. Of all of the alternative powertrain technologies, hybrid technology poses the least pressure on existing infrastructure. “High fuel prices, uncertain diesel policies and green initiatives by state-owned transport corporations, coupled with OEMs' willingness to partner with foreign module suppliers developing hybrid and electric powertrain systems, are creating a foundation for the hybrid and electric CV market in India,” said Frost & Sullivan Research.

The biggest challenges are the high upfront cost of technology and the lack of charging infrastructure to support growth. Moreover, the lack of in-house research for local OEMs and suppliers is expected to prevent price reduction of key components which will have to be imported. The battery replacement cost burden and battery lifecycle concerns are key market restraints for hybrid and electric powertrain adoption in CVs, says F&S. Thus, the need for strategies aimed at reducing the upfront cost – either of the base vehicle, hybrid/electric drivetrain or both – on a priority basis to establish market leadership.