Indian Electric Vehicle - Market Opportunities

The globe is rapidly progressing towards electric vehicles to reduce carbon emissions and maintain sustainable environment. India is also doing its part in terms of promoting EV adoption in the country and promoting electric mobility.

India is the world’s fourth-largest vehicle market and one of the fastest-growing automobile markets, but its share in the global electric mobility has been minimal compared to countries like the US, the UK, China, Japan etc. However reports indicate that while adoption of EVs in India is at still an infant stage, it will multiply many times over in the near future.

EV Market in India

According to Invest India, the national investment promotion and facilitation agency, the Indian electric vehicle market will be USD 2 billion in 2023. As per IESA, the electric vehicle (EV) market of India is expected to amount around 63 lakh units per annum by 2027, at an anticipated compound annual growth rate (CAGR) of 44% from 2020-2027. According to a GMI Research report, the global EV market in the world will grow at a CAGR of 13.5% from 2019 to 2030. These statistics from these multiple organization just bolster how big the potential of EVs could be in India.

It all adds to the favourable policies the Indian government has executed to promote the consumption of electric vehicles, making it the key enabler for the Indian EV market. Some other drivers of India EV market are growing concerns for environmental pollution, massive investments in EV sector by prominent players, declining EV battery prices etc.

Govt. Support & Policies

To reduce environmental pollution, the Government of India has been trying to facilitate EV adoption in the country. India has pledged to cut greenhouse gas emissions per unit GDP in the country by 33-35% by 2030, a commitment made as part of the Paris agreement. In order to realise this goal, the government is encouraging the usage of EVs over conventional cars. The new scrappage policy that has been recently announced to phase out non-fir and older automobiles from use helps boost the EV sector in India too.

Various state governments are innovating their EV policies, in sync with the central government, taking into account local conditions and requirements, to attract investments in the EV domain and promote the penetration of electric mobility. Or for that matter, with plenty of states coming up with policies, that include both fiscal and non-fiscal incentives, the adoption of EV is going to witness massive growth through across the length and breadth of the country.

Many of your competitors are now investing in the Indian EV and taking advantage of the opportunities presented by the industry. Hosur, Tamil Nadu-based Ola Group is constructing a Rs. 2,354 crores mega electric two-wheeler manufacturing plant. The alliance is composed of some of the top automotive brands, like Honda, KTM, Yamaha and Piaggio. Tesla, a big name in the world of EVs is also looking to set up electric vehicles plant in India. unit in Hosur, Tamil Nadu with a total investment of 2.3 thousand crores. Some of the world-renowned automobile OEMs, such as KTM, Yamaha, Honda and Piaggio formed a business entered into an alliance to develop a standard swappable battery system, that serves as an alternative to conventional batteries in electric vehicles. A major name in the global EV landscape Tesla is also planning to start electric vehicles manufacturing plant in India.