Indian EV market set to grow at over 40% CAGR until 2027
ECONOMY & POLICY

Indian EV market set to grow at over 40% CAGR until 2027

The Indian Electric Vehicle (EV) market is projected to grow at a compound annual growth rate (CAGR) of 35-40% until 2027, according to a report released by Niveshaay. The report highlights that India's EV sales volume could reach 3-4 million units by 2025 and 10 million by 2030.

Currently, two- and three-wheelers dominate the Indian EV market, making up around 80% of the segment. The report also noted the government's efforts to enhance local manufacturing and reduce import reliance through Production Linked Incentive (PLI) schemes and reduced customs duties on essential minerals.

Arvind Kothari, Founder, Niveshaay, commented that a balanced approach to policy and market development is helping India emerge as a key player in the global EV sector, despite challenges like limited charging infrastructure.

EV adoption is expected to account for 10-15% of new vehicle sales by 2030, with electric buses, commercial vehicles, and passenger cars contributing to the projected sales of over 10 million units. The report forecasts that India will have more than two million public charging stations by 2030.

The expansion of EV adoption, infrastructure, and manufacturing is linked to increased budget allocations for the sector. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, introduced in 2015, has continued to receive government support, with Rs 26.71 billion allocated for FAME II in the 2024-25 Union Budget. Additionally, the government has launched Rs 5 billion Electric Mobility Promotion Scheme (EMPS) to boost the adoption of electric two- and three-wheelers.

India’s potential to become a significant player in the global EV market is supported by key initiatives such as FAME, EMPS, and the PLI scheme. As urbanisation and population growth drive demand, the country is poised to compete on the global stage.

(ET)

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The Indian Electric Vehicle (EV) market is projected to grow at a compound annual growth rate (CAGR) of 35-40% until 2027, according to a report released by Niveshaay. The report highlights that India's EV sales volume could reach 3-4 million units by 2025 and 10 million by 2030. Currently, two- and three-wheelers dominate the Indian EV market, making up around 80% of the segment. The report also noted the government's efforts to enhance local manufacturing and reduce import reliance through Production Linked Incentive (PLI) schemes and reduced customs duties on essential minerals. Arvind Kothari, Founder, Niveshaay, commented that a balanced approach to policy and market development is helping India emerge as a key player in the global EV sector, despite challenges like limited charging infrastructure. EV adoption is expected to account for 10-15% of new vehicle sales by 2030, with electric buses, commercial vehicles, and passenger cars contributing to the projected sales of over 10 million units. The report forecasts that India will have more than two million public charging stations by 2030. The expansion of EV adoption, infrastructure, and manufacturing is linked to increased budget allocations for the sector. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, introduced in 2015, has continued to receive government support, with Rs 26.71 billion allocated for FAME II in the 2024-25 Union Budget. Additionally, the government has launched Rs 5 billion Electric Mobility Promotion Scheme (EMPS) to boost the adoption of electric two- and three-wheelers. India’s potential to become a significant player in the global EV market is supported by key initiatives such as FAME, EMPS, and the PLI scheme. As urbanisation and population growth drive demand, the country is poised to compete on the global stage. (ET)

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