New Delhi
India is poised to become the world’s fourth-largest electric car manufacturer by 2030, according to a new report by the New York-based Rhodium Group. The country’s planned electric four-wheeler production capacity is projected to surge over tenfold—from the current 0.2 million units to 2.5 million units—placing it behind only China, Europe, and the United States.
The report highlights that India’s EV manufacturing capacity will exceed domestic demand by 1.1 to 2.1 million units over the next five years. However, to effectively tap global markets, Indian automakers must focus on reducing production costs to remain competitive, particularly against low-cost Chinese EVs.
In FY 2024-25, homegrown manufacturers like Tata Motors, MG Motor, and Mahindra dominated the Indian EV market, collectively accounting for nearly 90% of sales, according to the government’s Vahan dashboard data.
Rhodium’s findings suggest that while India’s EV sector is expanding rapidly, export success will hinge on its ability to cut costs and increase efficiency. This becomes crucial as the international market for electric vehicles becomes increasingly competitive, with China already leading in terms of volume and affordability.
The report also calls for strategic policy support and investment in advanced battery technologies, supply chain resilience, and charging infrastructure to bolster India’s position in the global EV race.
India’s push for electric mobility aligns with its broader climate and economic goals, offering an opportunity not just to reduce emissions, but also to become a significant global player in green technology manufacturing.