Let’s take a look at the most EV-selling companies in India in 2022. Ola Electric sat at the top with 17% of all the EV sales in the year, followed by many innovative startups and new-born companies like Okinawa Autotech, Hero Electric, Ather, etc. Did you notice, there’s no legacy auto. Giant in this list which shows they aren’t actively taking part in the EV revolution happening in the country. And why their absence is such a major concern for us is, it directly hamper the EV growth in India.
Now undoubtedly startups have the potential to take charge of the electric vehicle and revolutionize the auto market but along with the involvement of big companies the EV adoption could have been accelerated better.
Here the question arises, why legacy players aren’t taking part in the EV growth of the country when its clearly evident that electric vehicles are the future? Do they lack the capability of making an EV or they are just ignorant and wouldn’t stress themselves to change? Let’s dig deeper into this question and find out how startups are outpacing the auto-giants in this EV revolution.
Slow but steady growth of EV startups:
Startups we are seeing winning today didn’t just poped-up suddenly from the Earth but they kept consistently polishing themselves for a very long time, perfecting their design, working on supply-chain, improving their battery, and growing overall, and as soon as the EV wave hit India, these startups started flooding their vehicles like water into the urban cities and made rapid growth. Along with that, government incentives and schemes also gave these startups huge support to position themselves better in the market and now we only see startups paving their way through the EV market in India.
Factors that made startups win:
Now that we know what startups did to capture the EV market, the question arises why auto-giants couldn’t do anything about it and let startups eat away their market share.
Here’re a few points that explain this scenario well:
1. Agility and innovation
Startups like Ola Electric, Ather Energy, and Oben Rorr operate with the agility of a tech company, rapidly innovating and bringing fresh ideas to the market. Giants like Hero MotoCorp, Honda, and Suzuki are bound by legacy processes and have been slower to adapt. In a corporate environment even sliding a pin would require multiple permissions from top management, unlike startups they are at a very high risk when bringing a change.
2. Focus on EVs –
While big companies already had a set business of manufacturing ICE vehicles, startups are solely focused on electric vehicles, whereas giants have large existing investments in gas-powered vehicles that they are trying to transition from. This divided focus might be one od the reason for slow adaptation.
3. Direct sales model:
Startups utilize a direct-to-consumer sales approach which enables more control over the customer experience and pricing. Giants rely on entrenched dealer networks which can resist change. It’s a difficult job to change the mind of dealers to suddenly change their whole inventory in all-electric vehicles for ICE ones which can be one of the barriers in front of major companies.
4. Blank slate brands:
Startups can shape their brands around sleek, high-tech EVs without any baggage. Whereas Giants must evolve century-old brands built around gas cars. Companies like Royal Enfield have built their brand glorifying the feeling of shakiness and sturdiness of the bike and EVs are just opposite of that. EVs are light and silent, and for a brand like Royal Enfiled to position itself in such a contradictory market is not easy.
5. Investor appetite:
There is a huge investor appetite to fund promising EV startups. Securing financing has been easier for startups versus giants trying to pivot. It’s way more profitable for investors to invest in a startup and take advantage of this growing EV market.
Conclusion:
In a landscape dominated by innovative startups like Ola, and Ather, the absence of legacy auto giants in India’s EV revolution is conspicuous. This shift in the automotive paradigm underscores the remarkable journey of these startups, whose steady growth, agility, and focused dedication to electric vehicles have propelled them to the forefront.
While giants grapple with legacy processes, divided priorities, and entrenched distribution models, startups have harnessed their blank-slate brands, direct sales strategies, and investor support to reshape the market. The triumph of these startups offers a profound lesson: that adaptability, innovation, and an unwavering commitment to the future can eclipse even the mightiest of established giants. As EV startups illuminate the path forward, the question remains: will the giants rise to the challenge or continue to watch as the new era unfolds?
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