Mumbai
The Indian Electric Vehicle (EV) market is projected to grow at a rate of 35-40 percent CAGR until 2027, according to a recent report. It is estimated that EV sales could reach 3-4 million units by 2025 and 10 million by 2030. Currently, the EV market in India is dominated by two- and three-wheelers, making up 80 percent of sales.
The Indian government has been supporting local EV manufacturing by introducing Production Linked Incentive (PLI) schemes and lowering customs duties on essential minerals. These measures aim to reduce reliance on imports. Government incentives, rising fuel prices, and growing consumer awareness are expected to drive EV penetration, leading to 10-15 percent of new vehicle sales being electric by 2030.
The report suggests that by 2030, EV sales will exceed 10 million units annually, with significant growth in electric buses, commercial vehicles, and private cars. A projected increase in public charging stations to over two million is expected to support this growth.
Increased government budget allocations, including funds for the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and Electric Mobility Promotion Scheme (EMPS), are also helping reduce EV costs. India is expected to become a major player in the global EV market, driven by government initiatives and increased demand for affordable electric vehicles.
