India Electric Car Market: Industry Analysis and Forecast (2024-2030)

The India Electric Car Market size was valued at USD 2.28 Bn. in 2023 and the total India Electric Car Market Size is expected to grow at a CAGR of 47.5% from 2024 to 2030, reaching nearly USD 34.63 Bn. in 2030.
India Electric Car Market Overview: 
Electric vehicles (EVs) use electricity as their primary fuel or to improve the efficiency of conventional vehicle designs. EVs include all-electric vehicles, also referred to as battery electric vehicles (BEVs), and plug-in hybrid electric vehicles (PHEVs). Powered by electricity stored in rechargeable batteries or other energy storage devices, electric cars present a sustainable alternative to traditional vehicles that run on gasoline or diesel.

The future of electric transportation is evolving rapidly. India is one of the top ten automotive markets in the world. With rapid urbanization, migration, and economic growth causing severe air pollution and traffic congestion, transitioning to EVs is crucial to reduce pollution and lower dependence on expensive oil imports covering 80% of the country's needs. Electric cars operate on electricity, eliminating the direct emission of greenhouse gases (GHGs) and significantly reducing environmental pollution. The electric vehicle opportunity is a game-changer for India's car industry. Electric cars typically provide instant torque, resulting in swift acceleration. They also offer a smoother ride owing to fewer moving parts, which translates to less need for maintenance. The growing network of charging stations, the increasing range of newer models, and various government incentives make electric cars a practical and environmentally responsible choice for consumers.

1. The Bihar EV policy 2023 offers several benefits, including incentives of up to Rs 1.25 lakh for the first 1,000 personal electric cars. Furthermore, it provides subsidies on Motor Vehicle Tax of up to 75 percent.

2. Despite losing some ground in 2023, Tesla continues to dominate the EV market. Elon Musk's electric car company secured the top two positions in sales, with Model Y sales of 394,497 and Model 3 sales of 220,910, according to KBB. In a distant third place is GM's Chevrolet Bolt, which racked up 60,045 sales of the EV

The Top 5 Safest Electric Cars in India 2023. 

1. Tata Tigor EV is one of the safest electric cars in India. Tata Motors is continuously committing to safety with new powertrain technologies to achieve efficiency and sustainability in EVs.

2. Kia EV6 has received a great safety rating from the Euro NCAP and the Insurance Institute of Highway Safety. Kia EV6 has scored a 5-star safety rating on the Euro NCAP crash test.

3. BYD Atto 3 has secured an impressive 5-star safety rating in Euro NCAP crash tests. It scored 91 percent in adult occupant protection, 89 percent in child occupant protection, 69 percent in vulnerable road users, and 74 percent in the safety assist category.

4. The Loniq 5 has achieved a five-star safety rating from Euro NCAP. It scored 88 percent in adult occupant protection, 86 percent in child occupant protection, 63 percent in vulnerable road users, and 88 percent in the safety assist category.

5. BMW i4 has received a four-star safety rating by Euro NCAP. It has scored 87 percent in adult occupant protection, 87 percent in child occupant protection, 71 percent in vulnerable road users, and 64 percent in the safety assist categoryTo know about the Research Methodology :- Request Free Sample Report
India Electric Car Market Dynamics: 
Evolving Factors Fuelling the Surge in Electric Car Sales in India

Rising fuel costs over the past decade and consumer awareness of the long-term cost benefits are driving up sales of electric cars. The major factors behind the exponential growth are rising foreign direct investment (FDI), Construction of manufacturing hubs, and amplifying push to improve the charging infrastructure. Rapid urbanization and inflating income levels are driving the sales of Electric Cars among Indian consumers.  Additionally, the electric car industry is slowly gathering momentum with the support of the government and a surge in crude oil prices, as people are looking for ways to lessen their monthly bills.

Energy Density and Lifespan Enhancements Shaping the Market

Density one of the most significant trends in Electric Car batteries is the drive for increased energy density. Energy density is the amount of energy stored in a battery per unit of weight or volume. Higher energy density means that an EV travels further on a single charge, making it more convenient for drivers. Another trend of EV batteries in 2023 is an increase in battery lifespan. Battery degradation is a significant concern for EV owners, as it impacts the range of the vehicle over time.

The FAME scheme's subsidy is an incentive program that influences the Indian market for hybrid and electric automobiles. Along with FAME, the Central Government of India and some state governments, including the Government of the National Capital Territory of Delhi (NCT of Delhi), offer tax advantages that give hybrid and electric vehicles a leg up on conventional automobiles.

Charging Infrastructure to Restrain the India Electric Car Market

The absence of charging infrastructure limits the growth of the electric car market in India. Primary concerns for potential electric car buyers are range anxiety, and the fear of running out of battery power without access to a charging station. The limited availability of charging stations slows down the adoption rate of Electric cars in India. Without a reliable and extensive network of charging points, potential EV buyers choose to stick with conventional internal combustion engine vehicles that have a well-established refuelling infrastructure.

The lack of standardization and interoperability between different charging networks also poses challenges for EV owners. The government, in collaboration with EV ecosystem players and auto OEMs, prioritizes establishing standardization protocols, ensuring interoperability, and promoting the development of fast-changing technologies.
India Electric Car Market Segment:
Based On technology, Battery Electric Vehicle (BEVs) segment accounted for the largest market share of 70 % in 2023.  Battery Electric Vehicles (BEVs), also called BEVs and more frequently called EVs, are fully electric vehicles with rechargeable batteries and no gasoline engine. The Tata Nexon EV with dual battery pack option is the best-selling BEV in India, followed by the Tata Tigor EV. Tata BEV products are locally produced using imported battery cells. The Nexon EV Max had a high-water sales mark in June, with 3,070 cars. Tata also sold almost 30,000 across its Nexon lineup, to take 60% of BEV market share.

The Tigor is proving good value for money and has increased its sales by 500%. Although other manufacturers sell BEVs in India, the numbers are minuscule. Mahindra has the eVerito, Hyundai sells a few Konas, Kia has launched the EV6 as a premium vehicle, and BMW imports the iX SUV and the Mini SE. In Addition, The higher subsidies offered by the government on the purchase of BEVs as compared to PHVs and HEVs, coupled with the dwindling battery price and availability of many BEV models, drive the sales expansion.
India Electric Car Market Regional Insight: 
Uttar Pradesh, Maharashtra, Delhi, Karnataka, and Rajasthan were the top EV-selling states in 2023, accounting for more than 50% of the market share. Uttar Pradesh state dominated the India Electric Car Market in the year 2023 with a 21.73 market share. In terms of 2023 sales share, Uttar Pradesh, Maharashtra, Karnataka, Rajasthan, and Gujarat were the top EV-selling states. The Uttar Pradesh is a desirable site for electric car manufacturers to establish production facilities because it is home to numerous industrial and manufacturing clusters. Uttar Pradesh (U.P.) leads the count of the maximum number of electric vehicles (EVs) in the country (4, 14,978), followed by Delhi (1, 83,074) and Maharashtra (1, 79,087). Uttar Pradesh leads in electric vehicle registrations with 7 lakh vehicles, followed by Maharashtra with 4 lakh registrations.

Karnataka closely trails with 3.1 lakh electric vehicles registered, while Delhi and Rajasthan have 2.6 lakh and 2.2 lakh electric vehicle registrations. The state has also been one of the largest beneficiaries under FAME I & II schemes of the Government of India. With regards to the creation of charging infrastructure, U.P. has sanctioned 207 charging stations under FAME II which are being installed in 9 cities of the state, viz. Noida, Lucknow, Varanasi, Prayagraj, Kanpur, Aligarh, Saharanpur, Bareilly & Jhansi through REIL & EESL. More charging stations are expected along the Expressways in the state.
India Electric Car Market Scope: Inquire Before Buying



India Electric Car Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 2.28 Bn.


Forecast Period 2024 to 2030 CAGR:
47.5%
Market Size in 2030:
US $ 34.63 Bn.


 Segments Covered:
By Technology
Battery Electric Vehicles (BEVs)
Plug-in Hybrid Electric Vehicles


By Battery Type
Lithium-ion batteries
Lead-acid


By End Users
Shared Mobility Provider
Government Organization
Personal user



Key Players in the India Electric Car Market:
1. Hyundai Motor Company
2. Mahindra & Mahindra Ltd.
3. Toyota Kirloskar Motor Pvt. Ltd.
4. Volvo Car Corporation
5. Honda Motor Co. Ltd.
6. Tata Motors Limited
7. AB Volvo
8. Maruti Suzuki
9. MG Motor India Private Limited
10. TATA Motors
11. Hero Electric Vehicles Pvt. Ltd.
India Electric Car Market Competitive Landscape:
In 2023, Mercedes-Benz India introduced at least 10 models, including the GLE SUV, AMG C43, and electric cars. During the GLS facelift launch, the company announced plans to unveil over 12 models in the country, with three of them being electric cars. Furthermore, there is a strategic shift towards focusing on top-tier models, aligning with the growing demand for high-end luxury cars in India.

1. In January 2023, Tata Motors launched the Tiago EV, its most affordable electric car yet, at Rs. 8.49 lakh.

2. In October 2023, Volvo Cars India announced plans to introduce all its new models in India as electric vehicles starting in 2025.

3. In November 2023, Fortum Charge & Drive, Signed a MoU with the Telangana government to install 10,000 EV charging stations across the state.
FAQs:
1] What segments are covered in the India Electric Car Market report?
Ans. The segments covered in the India Electric Car Market report are based on Battery Type, Technology, and End-User.

2] Which region is expected to hold the highest share of the India Electric Car Market?
Ans. Maharashtra India is expected to hold the largest share of the India Electric Car Market.

3] What was the market size of the India Electric Car Market in 2023?
Ans. The market size of the India Electric Car Market by 2023 is US$ 2.28 Bn.

4] What is the forecast period for the India Electric Car Market?
Ans. The forecast period for the India Electric Car Market is 2024-2030.

5] What is the market size of the India Electric Car Market in 2029?
Ans. The market size of the India Electric Car Market in 2030 is valued at US$ 34.63 Bn.