As per our research report, the Global India Electric Vehicle Market size is estimated to be growing at a CAGR of 45.97% from 2023 to 2030.
The EV market, in India is experiencing growth due to its focus on manufacturing and promoting cars of traditional fuel-powered vehicles like gasoline or diesel. This industry has gained the attention of manufacturers, investors, and the Indian government as it holds the potential to transform the country’s transportation system and address pollution concerns. The Indian government has set targets to promote transportation advancements positioning the nation as one of the markets for electric vehicles globally. Several states have implemented policies such, as tax incentives and other benefits to encourage the adoption of cars. Car manufacturers, from both within India and abroad are actively exploring possibilities to venture into the growing vehicle (EV) sector. Known Indian companies such as Hero Electric, Tata Motors, and Mahindra & Mahindra have already made their entry into the automobile market with their cars. Even international giants like Tesla are contemplating joining this flourishing industry. The electric car market, in India has faced its share of challenges in light of the COVID 19 pandemic’s impact. Temporary shutdowns of production sites disrupted supply chains resulting in material shortages and hindering the growth of the sector. Additionally, the semiconductor issue affected India’s electric vehicle manufacturing. In 2020 approximately 4,600 four-wheeled cars were sold in the country.
Despite the government’s efforts, such, as the implementation of FAME II subsidies to encourage vehicle adoption the growth rate has not met predictions due to COVID-induced lockdowns and reduced manufacturing output. However, thanks to government measures and substantial state-level incentives the market is now on a path to recovery. In fact, there has been a 287.1% increase in four-wheeler sales in 2021. Furthermore, there is a rising demand, for buses, which is anticipated to expand with the deployment of FAME II supported e buses.
One interesting trend observed in the vehicle (EV) market is the rising popularity of micro vehicles, especially electric two-wheelers and three-wheelers. These vehicles have gained traction due to their affordability and suitability for road conditions. Given that a majority of Indians prefer two-wheelers for their commute it’s anticipated that these vehicles will witness adoption. Electric two-wheelers in India are attractively priced, ranging from USD 600 to USD 3,755 making them a cost-effective alternative to four-wheelers. Some of the electric vehicle models, in India are the Revolt RV 400 and Tork Kratos among others. Many Indian companies are entering the market to capitalize on the growing demand and government initiatives. For instance, subsidies, like FAME India are playing a role in encouraging the adoption of vehicles. Maruti Suzuki had plans to launch the Brezza EV in July 2023 which would be a competitor with a battery pack capacity of 60 kilowatts and an impressive range of 550 kilometers. What’s more this car will also come equipped with Android Auto and Apple CarPlay making it more attractive, to buyers.
Enigma Automobiles, a company based in Madhya Pradesh revealed their N8 scooter in July 2023. Priced at Rs. 1.08 lakh this scooter has the ability to cover a distance of 200 kilometers on a charge. Furthermore, the Ministry of Heavy Industries, in India approved the establishment of 2,877 car charging stations in 2022. As of July 1st, 2022 fifty stations have already been successfully installed to support the growth of electric vehicle infrastructure. In June 2023 there was another development, within the Tata Group. They collaborated with a group. Invested an amount of $1.6 billion to establish a factory in Gujarat for manufacturing electric vehicle batteries. The objective of this collaboration, with the Gujarat state government is to boost car manufacturing and encourage sustainability, in the electric vehicle sector. This initiative clearly showcases their dedication to promoting transportation options in India.
Based on the Propulsion type, Battery powered electric vehicles (BEVs) currently dominate the electric vehicle market accounting for 67% of the revenue. BEVs are witnessing growth, within the EV sector. Are projected to experience a yearly growth rate of 35% from 2023 to 2029. In India advancements, in battery technology have resulted in improved energy density driving range and charging speed effectively addressing concerns related to range limitations. Battery cells offer flexibility, in designing vehicles based on their size and desired range. Automakers are showing increasing interest in investing in battery cell production thereby bolstering this industry sector. In a bid to promote the adoption of electric vehicle batteries the Indian government has taken steps to reduce customs duty, on lithium ion batteries from 21% to 13% as part of the 2023 Union Budget. This move aims to encourage production and usage of batteries.
Based on the Platform, the market, for four-wheelers holds a share. Four-wheelers have an advantage over two-wheelers and three-wheelers as they offer driving ranges making them more practical for commuting and trips. As a result, electric cars have become increasingly attractive to a range of consumers. The Indian government actively promotes car usage to combat greenhouse gas emissions and air pollution by offering incentives like subsidies, tax benefits, and reduced registration fees aimed at encouraging adoption. However, there is also a growing market for two-wheelers in India driven by logistics companies adopting them. The affordability of scooters in India further contributes to the expansion of this segment. Setting up charging infrastructure for two-wheelers is relatively easier compared to charging stations for cars since simple solutions like home charging or workplace charging adequately meet the needs of two-wheeler users.
Based on the Vehicle Type, Passenger cars currently dominate the market as the choice, for transportation. This category, which includes cars experiences demand compared to vehicles or industrial machinery. The charging infrastructure primarily focuses on supporting passenger cars with charging stations located in complexes and public spaces providing options for electric car owners. The increasing urban population in India is driving the demand for eco-commuting choices making electric passenger vehicles a solution for mobility. Passenger cars remain at the forefront by offering a range of options, comfort, and luxury features while ensuring emissions. As the trend towards adopting passenger vehicles continues to grow commercial vehicles are also expected to experience growth, between 2022 and 2030.
Based on the region, Uttar Pradesh, Delhi, and Karnataka are leading the way, in electric vehicle registrations in India with a total of 870,141 vehicles. Uttar Pradesh has 255,700 registered units, followed by Delhi with 125,347 and Karnataka with 72,544. Bihar and Maharashtra also have numbers of vehicles with 58,014 and 52,506 respectively. In Maharashtra specifically, there are incentives such as a subsidy of USD 65 per kWh for battery capacity and exemptions from road tax and registration charges. The policies implemented by the government have played a role, in promoting electric vehicle adoption throughout India by reducing GST on vehicles and charging stations from 12%.
Companies playing a leading role in the global India Electric Vehicle market profiled in this report are JBM Auto Limited, Mahindra Electric Mobility Limited, Ather Energy Pvt Limited, Electrotherm, Ola, TVS, Toyota, Renault Group, Tata Motors, Bajaj Auto.
Battery electric vehicle
Hybrid electric vehicle
Two-wheeler
Three-wheeler
Four-wheeler
Passenger Vehicles
Commercial Vehicles
Uttar Pradesh
Delhi
Karnataka
Gujarat
Maharashtra
For More Info, Request Sample Copy Of This Report @ https://virtuemarketresearch.com/report/india-electric-vehicle-market/request-sample
Analyst Support
Every order comes with Analyst Support.
Customization
We offer customization to cater your needs to fullest.
Verified Analysis
We value integrity, quality and authenticity the most.