Citi has highlighted increasing activity in India’s electric vehicle (EV) segment, which could create competitive challenges for established automakers like Maruti Suzuki and Hyundai India. The global brokerage firm noted that Tesla and BYD, with their proven technology and manufacturing expertise, are well-positioned to compete in the Indian market.
The report suggests that the entry of these global EV players could offset the traditional advantages held by Indian OEMs, such as their strong sales and service networks and well-integrated supply chains. Unlike internal combustion engine (ICE) vehicles, Indian automakers may struggle to leverage their existing service networks and vendor bases as effectively in the EV sector, potentially giving newer entrants a level playing field.
Citi’s observations indicate that the Indian auto industry is at a crucial transition point, where established companies may need to accelerate their EV strategies to maintain their market dominance in the face of increasing global competition.
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