India Electric Vehicle Market: Industry Analysis and Forecast (2022-2029)

India’s Electric Vehicle Market size was valued at US$ 326.6 Mn. in 2021 and the total revenue is expected to grow at 94.2% from 2022 to 2029, reaching US$ 66,070.86 Mn.
India Electric Vehicle Market Overview:
Significantly increasing vehicle emissions in the major cities and growing awareness about the adverse effect of this vehicle pollution on the environment and its effects on human health are driving the market growth. Furthermore, increasing the price of transportation fuels such as petrol, diesel, CNG, etc., are primarily driving the adoption of electric vehicles in India.



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The introduction of various initiatives by the Indian government for promoting the adoption of electric vehicles to reduce GHG emissions is also boosting the market growth in this country. The government has launched numerous financial aids and subsidies for the purchase of electric vehicles, which is acting as a significant key factor for the market growth.

The report includes detailed analyses of the Indian electric vehicle market and its segments such as leading companies, product types, and leading product technology. The data is published through primary interviews and secondary research. Manufacturers, suppliers, and small-scale distributors make up a large portion of the interviewees in order to teach more about government rules and regulations the demand-supply situation and to assess the market environment. Secondary data has been collected from reliable sources, beside this, the report offers insights into the Indian electric vehicle market trends and high light key industry developments. In addition to the factors above the report encompasses several factors that contribute to market growth in recent years
India Electric Vehicle Market Dynamics:
Reducing oil imports is a major factor driving the electric vehicle market

India has been spending a huge amount of money on crude oil imports to run its vehicles. According to the Petroleum Planning and Analysis Cell (PPAC) India imports about 80% of the oil consumed in the country, which means the exchequer is susceptible to crude price swings, which have impacted the economy in the past.

A push towards the adoption of EVs will mean reduced oil imports much of which is used for operating vehicles. It would allow the government to free up these funds towards the establishment of the needed infrastructure to run electric vehicles such as charging stations across the country and battery production capacity.

Moreover, the decreasing costs of lithium-ion batteries, coupled with the increasing focus on domestic production under the ‘Make in India’ initiative, are also increasing the demand for electric vehicles in the country. Besides this, the growing integration of electric vehicles with several advanced technologies, such as GPS navigation, remote sensors, anti-theft locking systems, etc., is expected to drive India’s electric vehicle market in the coming years.

Market restraints

Rang anxiety is one of the crucial challenges ahead of the growth path for electric vehicles in India. Electric vehicle customers are often worried about vehicles’ capacity to reach point b from point a before the battery runs out. This issue is closely connected to the rare charging infrastructure in India. The electric vehicle charging infrastructure in India is too low compared to petrol pumps also the available electronic vehicle charging stations are concentrated in urban areas only.

There is no price parity between electric vehicles and ICE vehicles in India. Electric vehicles are way more expensive than their conventional fuel-powered counterparts, for example, the Tata Nexon price starts from 7.19 lakh, while the Tata Nexon electric vehicle price starts from 13.99 lakh. This huge price difference discourages many intrusted electric vehicle buyers.

The recent cases of electric scooters catching fire in India have raised safety concerns. This is the major restrain on an electric vehicle.
To avoid such incidents, the government is planning to announce new quality control measures for batteries used in electric vehicles. It will be covered in a final report.

New Companies Are Investing In An Electric Vehicle In India

Tesla is focusing on building its factories around the world. They have already spent over 1 billion dollars in Austin, Texas, Brandenburg, and Germany for that and they have finally arrived in India. And many automobile giants have started to make their respective efforts.
surprisingly, the smartphone king apple is also going to kick off electric vehicle cars in the Automobile market. And not only big companies like Huawei, but Xiaomi are also in the race as per the reports and Samsung will provide chipsets and other electronic equipment like sensors to its partner. So, the consumers will have several choices. And this will boost Business Opportunities in the Electric Vehicles industry for small-scale industries.
India Electric Vehicle Market Segment Analysis:
By Vehicle Category Type: Electric two-wheelers have been leading the electric vehicles in India. Both two-wheelers and three-wheelers have been dominating the market. Indian government’s incentives and pro-EV strategies are driving the market northwards. The government’s incentives and policies regarding EV are covered in detail in the report. Government offers incentives in income tax for EV buyers.

Electric vehicles don’t have gears, which ensures an excellent driving experience with no complicated controls. Just accelerate, brake, and steer to manage and enjoy a calm, convenient, safe, and noise-free ride. Lesser noise is another added benefit of using electric vehicles. The electric motors are very quiet compared to internal combustion engines and their exhaust systems. Several studies show that vehicle noise can have many negative impacts, such as increased anxiety, depression, high blood pressure, heart diseases, stroke, and so on. The noise pollution may also increase the risk of severe depressive symptoms in humans.



Based on Technology, The BEV segment is expected to dominate the forecast period. Factors such as increased government regulations, support and initiatives for the adoption of the zero-emission vehicle as well as related charging infrastructure, the introduction of various BEV models by the leading players operating in India and continued development in battery technology to lower the overall cost of vehicles and increases the driving range. These factories increase segment growth. The HEV segment holds the second largest market shared in terms of revenue the growing demand for fuel efficient, low emission vehicles are expected to boost the HEV adoption in India.



India Electric Vehicle Market Regional Insights Uttar Pradesh, Delhi and Karnataka have emerged as the top three states in terms of registration of electric vehicles in India. 870,141 electric vehicles have been registered in India among them utter Pradesh has the highest no of electric vehicles registered at 255,700units. While Delhi has 125,347units and Karnataka have 72,544 electric vehicles and among five states Bihar with 58,014 electric vehicles and Maharashtra with 52,506 electric vehicles. Moreover, the state government of Maharashtra provide the incentive of around USD 65 per kWh of battery capacity and an exception from road tax and registration charges. To push electric vehicle seals, the central government introduced the faster adoption and manufacturing of hybrid and electric vehicles in India. Also, the central government has reduced GST on electric vehicles from 12%.it also reduced GST on charging infrastructure to promote the development of electric vehicle charging stations these factors have been playing a key role in the growth of electric vehicles sale in India.

The objective of the report is to present a comprehensive analysis of the India Electric Vehicle Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends also government’s annual report for new investment and facilities for electric vehicles presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the India Electric Vehicle Market dynamics, structure by analyzing the market segments and project the India Electric Vehicle Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the India Electric Vehicle Market make the report investor’s guide.
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India Electric Vehicle Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 326.6 Mn.


Forecast Period 2022 to 2029 CAGR:
94.2 %
Market Size in 2029:
US $ 66,070.86 Mn.


 Segments Covered:
by Vehicle Type
• Two-wheeler
• Three-wheeler
• Passenger cars
• Commercial vehicles


by Technology
• Battery electric vehicle (BEV)
• Plug-in hybrid electric vehicle (HEV)
• Fuel cell electric vehicle



India Electric Vehicle Market, by Region in India
• North
• East
• West
• South
India Electric Vehicle Market Key Players
• Mahindra & Mahindra Ltd.
• MARUTI SUZUKI INDIA LIMITED
• Toyota Motor Corporation
• AB Volvo
• Tata Motors
• Ashok Leyland
• Hero Electric Vehicles Private Limited
• Honda Motor Co., Ltd.
• Bayerische Motoren Werke AG
• Avon Cycles Ltd
• Lohia Auto Industries
• Electrotherm (India) Ltd
• Yamaha Golf-Car Company
• Club Car, LLC
• Speedways Electric
• Maini Material Movement Pvt. Ltd.
• Auto Power
• Carrieall Car Private Limited
• Ampere Vehicles Pvt. Ltd.
• Tunwal E-Vehicle India Pvt. Ltd
• Others

Frequently Asked Questions:

1. What is the forecast period considered for the India Electric Vehicle Market report?
Ans. The forecast period for the India Electric Vehicle Market is 2021-2029.

2. Which key factors are hindering the growth of the India Electric Vehicle Market?
Ans. Rang anxiety is one of the crucial challenges ahead of the growth path for electric vehicles in India.

3. What is the compound annual growth rate (CAGR) of the India Electric Vehicle Market for the forecast period?
Ans. 94.2 % is the compound annule growth rate of the india electric vehicle market for the forecast period.

4. What are the key factors driving the growth of the India Electric Vehicle Market?
Ans. Reducing oil imports is a major factor driving the electric vehicle market.

5. Which are the worldwide major key players covered for the India Electric Vehicle Market report?
Ans. MARUTI SUZUKI INDIA LIMITED, Toyota Motor Corporation, AB Volvo, Tata Motors are the major key players covered for the India Electric Vehicle Market.