The electric mobility industry has expanded considerably over the last five years, and India will become one of the world's leading EV markets by 2030. The industry is projected to grow at an average rate of 49% per year from 2021 to 2030, driven by encouraging government initiatives and policies, growing air quality issues, and increasing fuel prices. India is poised to be the largest EV market by 2030, with an overall investment opportunity of over $200 billion in the next 8-10 years.
Considering India's determination to combat environmental issues, decrease emission intensity of its gross domestic product (GHG emissions per unit of GDP) by 33%–35% more than 2005 levels by 2030, and adopt sustainable mobility solutions, electric mobility is rapidly becoming one of the key segments in the Indian automobile industry. E-Two Wheelers are estimated to capture a market size of 5 million by the year 2025, and E-Three Wheelers to account for 30% of sales.
Increasing at a CAGR of 49% from 2021 to 2030, the government expects the EV segment to surpass yearly sales of 17 million units by 2030. For promoting the adoption of electric vehicles, the government of India launched the second phase of Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in 2019 with a duration of 5 years. The key emphasis lies in electrifying public and shared transport, focusing on offering subsidies for 7262 e-Buses, 1.6 lakh e-3 Wheelers, 30461 e-4 Wheeler Passenger Cars, and 15 lakh e-2 Wheelers. India's overall Electric Vehicle penetration is anticipated to increase 8x in 2030 from the current 5%.
The government of India is supporting the growth of sustainable mobility by providing initiatives such as the Production Linked Incentive (PLI) Scheme, Advanced Chemistry Cell (ACC) battery storage to facilitate this growth. The National Programme on ACC Battery Storage, whose goal is to establish Gigascale ACC and battery manufacturing facilities in India, has spurred the adoption rate of this segment, with a 40% increase in the number of registered EVs in 2023 over 2022. Its vision to become completely electric by 2030, automakers such as Tata Nexon EV, Hero Electric Vehicles Pvt. Ltd. (Hero Electric Eddy), Mahindra Electric Mobility Ltd. (Mahindra eVerito), and more, have been involved in research and development, apart from striving for equipment for EVs, while including GPS navigation, remote sensors, anti-theft locking systems, and so on.
Why Electric Mobility Industry?
Robust Demand
More than 50% of 3-wheelers, around 5% of 2-wheelers, and 2% of cars purchased in 2024 are EVs. The number of electric cars registered in India in 2024 was 13,05,926 (up to 30th November, 2024).
Attractive Investments
During 2024, the government gave its clearance to a new $500 million value EV Policy that provided a set of incentives to attract investment from international EV players and make India a top manufacturing base for cutting-edge EVs.
Policy Support
India's state and central governments have initiated lucrative policies such as Production Linked Incentives and FAME for businesses to establish manufacturing plants and customers to adopt EVs and suppliers to drive local production and network expansion.
Ambitious Target
The government of India has planned for 30% electric vehicle adoption by 2030 and has introduced several policies and incentive programs to achieve the same.
