Overview of Indian EV Industry

Synopsys: 
During COP26, India unveiled its ambitious decarbonization target for 2030. This entails reducing carbon emissions in the energy sector by 50 percent and attaining 500 gigawatts of renewable energy generation capacity by the year 2030, while also becoming a part of the global EV30@30 campaign. To achieve this, India aims to triple its current renewable capacity, with the EV30@30 campaign specifically targeting the goal of ensuring that electric vehicles  (EVs) account for at least 30 percent of new vehicle sales by 2030.

That is a big task—at least in the passenger vehicle category. Electric cars accounted for just 1.3 percent of car sales in 2022, that is, 49,800 EVs sold out of 3.8 million passenger vehicles. Nevertheless, automakers and allied sectors remain buoyant about EV use in the near future, with traditional players and new stakeholders exploring multiple pathways to R&D and commercial production of vehicles and auto components.

Projections indicate that the Indian EV market, valued at US$2 billion in 2023 could surge to US$7.09 billion by 2025. Industry estimates also forecast the domestic EV market to achieve 10 million annual sales by 2030. In this market brief, we discuss some of the moves underway, on the part of car makers and the government, to expand India’s EV market share for private vehicles and public transport.