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

India Electric Vehicle Market size was valued at US$ 30.35 Bn. in 2023 and the total revenue is expected to grow at 24.31% from 2024 to 2030, reaching US$ 139.22 Bn.
India Electric Vehicle Market Overview:
Increasing vehicle emissions in the major cities and growing awareness about the adverse effects of 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. Increased sourcing by global original equipment manufacturers (OEMs) from India and the rising trend of localization among these OEMs are transforming the country into a preferred hub for design and manufacturing. India's automotive sector benefits from this trend significantly, with 8% of the nation's total research and development expenditure being directed towards it.

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The introduction of various initiatives by the Indian government to promote 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 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, besides this, the report offers insights into the Indian electric vehicle market trends and highlights key industry developments. In addition to the factors above the report encompasses several factors that have contributed 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 for 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.



In 2023, the price of lithium-ion battery packs declined to $139 per kilowatt-hour, marking a notable decrease from the previous year's rate of over $160 per kilowatt-hour. Lithium-ion batteries stand out as highly efficient energy storage solutions globally. This reduction in cost can be attributed to substantial investments and increased production scale in battery manufacturing processes. It underscores a significant global demand for energy storage solutions, likely driven by the transition towards a renewable energy-focused economy, where electric vehicles are assuming greater prominence.

As awareness about the impacts of climate change spreads, individuals, organizations, and governments are increasingly focused on shrinking their environmental impact. One key avenue they're pursuing is the promotion of electric vehicles (EVs) to foster a greener society and reduce pollution associated with transportation. The trajectory of EV sales reflects this commitment, with global plug-in electric light vehicle (PEV) sales experiencing a remarkable upward trend since 2015, surpassing 10 million units sold by 2022.



As of 2023-2024, electric vehicles (EVs) have made modest inroads into the Indian market, with passenger cars accounting for just 2% of total sales and two-wheelers representing a slightly larger share at 5%. Despite these relatively low figures, the Indian government has set an ambitious target of achieving 30% EV penetration by the year 2030, signaling significant growth potential in the sector over the next six years. This target underscores a strong commitment to reducing carbon emissions and promoting sustainable transportation solutions.
With supportive policies and incentives in place, the Indian EV market is poised for rapid development, offering opportunities for manufacturers, investors, and consumers. The transition to electric mobility aligns with broader global trends toward cleaner energy and presents an opportunity for India to position itself as a leader in the EV revolution. Achieving the 2030 target will require concerted efforts from all stakeholders, including policymakers, industry players, and consumers, to overcome challenges related to infrastructure development, affordability, and consumer awareness. Overall, the outlook for the Indian EV market is promising, with the potential to drive economic growth, reduce air pollution, and enhance energy security in the years to come.

Price Volatility to restrain India Electric Vehicles Market Growth

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 the vehicle’s 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 Electric Vehicles 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.
The smartphone king apple is also going to kick off electric vehicles 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. 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 share 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

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. 870,000+ electric vehicles have been registered in India among them utter Pradesh has the highest no of electric vehicles registered at 255,000+ units. Delhi has 125,000+ units and Karnataka has 72,500+ electric vehicles and among five states Bihar with 58,000+ electric vehicles and Maharashtra with 52,500+ electric vehicles. Moreover, the state government of Maharashtra provides an 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 vehicle sales in India.

EV Subsystem

1. Auxillary Inverters
2. DC-DC Converter
3. Lithium-ion Batteries
4. Inverter
5. Motor & Motor controller
6. Battery Management Systems (BMS)
India Electric Vehicle Market Scope: Inquire before buying



India Electric Vehicle Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 30.35 Bn.


Forecast Period 2024 to 2030 CAGR:
24.31%
Market Size in 2030:
US $ 139.22 Bn.


 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 Key Players Include:
Passenger Cars EV
1. Tata Motors
2. MG Motors
3. Mahindra & Mahindra
4. Hyundai
Buses EV
5. Olectra
6. JBM Auto
7. BYD
8. Switch Mobility
9. Tata Motors
10. Eicher Volvo
Three-Wheelers
11. YC Electric Vehicle
12. Mahindra & Mahindra
13. Piaggio
14. Dili Electric Auto
15. Saera Electric Auto
16. TVS
Two-Wheelers
17. Ola Electric
18. TVS
19. ATHER
20. Bajaj
21. Ampere
22. Okinawa
23. Hero Electric
24. 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 2024-2030.

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. 24.31% is the compound annual 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. Ola Electric, TVS, ATHER, Bajaj, etc. are the major key players covered for the India Electric Vehicle Market.