According to experts, the three sub-segments of passenger vehicles, strong hybrid, electric and Compressed Natural Gas(CNG), have the potential for the most growth as the traditional fuel vehicles growth slows.
Electric Vehicles have taken the automotive world by storm recently, but they may face some tough competition in the coming times because of the ‘strong hybrid’ segment. These hybrid vehicles include an internal combustion engine and an electric motor that can work independently and together.
EVs have seen a jump of 131% in sales year-on-year from 25,100 in January to 58,076 units in July. But, these numbers are minimal compared to the jump that strong hybrid sales have made. From selling 1,467 units to 47,124 units, hybrids have a growth rate of 31,000%, which is exceptionally good.
The splitting of passenger vehicles into four subcategories (EV, CNG, Strong Hybrid, and Traditional fuel vehicles) has led different vehicle companies to master each segment. Tata Motors and MG Motor lead the EVs space, while Toyota Kirloskar and Maruti Suzuki hold strong in the hybrid segment on the other hand, CNG and Internal combustion engine is led by Maruti Suzuki.
As the supply chain and charging infrastructure is yet to develop significantly in India, Hybrids have a great potential to bridge the gap and capture the market share by providing convenient choices to the users. Companies like Toyota and Maruti Suzuki has understood the need of users who want sustainable options but are reluctant to shift towards fully electric vehicles.
