The Electric Vehicle (EV) sector in India is experiencing rapid growth, driven by government support, rising environmental concerns, and technological advancements .
Here’s an overview of the current state and future prospects:
- Market Size and Growth:
- The Indian EV market is projected to expand from US$ 3.21 billion in 2022 to US$ 113.99 billion by 2029, exhibiting a CAGR of 66.52% .
- Another estimate suggests the market will grow at a CAGR of 28.52%, reaching US$ 18.319 billion by 2029 from US$ 5.22 billion in 2024 .
- In 2023, EV sales increased by 49.25% to 1.52 million units .
- Electric vehicle sales in India surged by 20.88% to 1.39 million units in May 2024 .
- Government Initiatives and Policies:
- FAME India Scheme: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme aims to increase EV adoption through incentives and subsidies .
- FAME II: With a budgetary outlay of Rs. 10,000 crore (US$ 1.43 billion), FAME II incentivizes EV consumption and supports manufacturing .
- Electric Mobility Promotion Scheme: With a budget of Rs. 500 crore (US$ 60.18 million), this scheme enhances green mobility and stimulates EV manufacturing .
- Charging Infrastructure Support: The Ministry of Heavy Industries (MHI) has approved a capital subsidy of Rs. 800 Crore (US$ 96.13 million) to set up 7,432 Electric Vehicle Public Charging Stations (EVPCS) .
- State-Level Initiatives:
- Maharashtra aims for a 10% EV share in new vehicle registrations by December 2025 .
- Karnataka plans to electrify 100% of three and four-wheeler cargo vehicles by December 2030 .
- Investments and Key Players:
- Investment Commitments: In 2024, notable EV investment commitments include Tata Motors-JLR (Rs. 9,000 crore), VinFast (up to Rs. 16,500 crore), Royal Enfield (Rs. 3,000 crore), and Stellantis (Rs. 2,000 crore) .
- Ola Electric: Ola Electric has emerged as India’s top patent publisher for 2022-23, with 205 patents in EV and related technologies .
- Hyundai Motor India: Hyundai intends to invest US$ 2.45 billion in Tamil Nadu over the next decade to enhance its EV initiatives, including assembling EV battery packs and installing 100 charging stations .
- Charging Infrastructure:
- As of February 2024, there are 12,146 operational public EV charging stations nationwide .
- Maharashtra has the highest number of EV charging stations, followed by Delhi .
- A CII report emphasizes the need for 1.32 million charging stations by 2030, requiring over 400,000 installations annually .
- Hyundai Motor India is expanding its ultra-fast EV charging network with 11 new stations in major cities and along highways .
- Consumer Trends:
- A recent survey indicates that 83% of Indian consumers are ready to choose New Energy Vehicles (NEVs) exclusively for future purchases by the end of this decade .
- Goa leads in EV penetration, with 14.20% of new vehicles sold this year being electric, followed by Tripura and Chandigarh .
- Challenges and Opportunities:
- Manufacturing Costs: A cost-effective manufacturing base keeps costs 10-25% lower compared to Europe and Latin America .
- Skilled Workforce: India has a large pool of skilled and semi-skilled workforce .
- Charging Infrastructure: Setting up 1.32 million charging stations by 2030 presents a significant growth opportunity .
- Future Outlook:
- India aims for 30% EV sales in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two and three-wheelers by 2030, targeting 80 million EVs on Indian roads .
- The Indian EV battery market is projected to surge from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028 .
- The EV finance industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030 .
- Recent Trends:
- EV Insurance Demand: EV insurance demand has surged 16 times in three years, with EV car policies rising from 0.50% in FY23 to 14% in March 2025 .
- Production Increase: In 2025, production of battery-powered passenger vehicles in India is projected to increase by 140.2% year-over-year, reaching approximately 301,400 units .
- More EV Launches: India is anticipated to see more EV launches than petrol and diesel cars in 2025, with 18 out of 28 planned models being EVs .
