Market Research Report
India Electric Vehicle (EV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Published by||Mordor Intelligence Pvt Ltd||Product code||938143|
|Published||Content info||70 Pages
Delivery time: 2-3 business days
|India Electric Vehicle (EV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
|Published: May 13, 2021||Content info: 70 Pages||
The India Electric Vehicle Market was valued at USD 5 billion in 2020 and is expected to reach USD 47 billion by 2026 registering a CAGR of above 44% during the forecast period (2021 - 2026).
The India Electric Vehicle Market has been impacted by the outbreak of COVID-19 pandemic due to supply chain disruptions and halt of manufacturing units due to continuous lockdowns and travel restrictions across the county. However, as electric vehicle (EV) market is still in its nascent stage in India. It is expected to grow at a much faster rate during the forecast period due to various government initiatives and policies.
E-Commerce companies (Amazon, for example) are launching initiatives to use e-Mobility for last-mile deliveries to reduce carbon footprint. India is experimenting with e-Mobility for public transport and has deployed electric inter-city buses across some of the major cities. In addition, state governments are also playing active role in deployment of policies encouraging EV. For instance,
The EV market in India has gained significant momentum after the implementation of FAME India scheme with its aim of shifting towards e-mobility in wake of growing international policy commitments and environmental challenges. Moreover, India offers the world's largest untapped market, especially in the Electric two-wheeler segment and as 100 percent foreign direct investment is allowed in this sector under the automatic route market is expected to gain momentum during forecast period.
Growing Adoption Of Electric Buses During Forecast Period
India is the second most populated country in the world after China, and just like China, which has the largest electric bus fleet in the world, India is also pushing hard for the electrification of buses. Many state governments have already started the procurement of electric buses from Chinese and local electric bus manufacturers.
With growing need for controlling GHG (Greenhouse gases) emissions emitted by vehicles, the government is encouraging the use of electric powered vehicles across various states, which is boosting the demand for electric buses in India. The market is being driven by factors such as increase in domestic manufacturing, rapid urbanization, and rise in environmental awareness. For instance,
Many local bus manufacturers are in collaboration with some Chinese manufacturers are trying to catch the rising demand of the electric buses in India. For Instance,
Electric Two Wheeler Vehicles Likely To Have Optimistic Growth
With transportation still being a challenge in India, a lot of people in these segments look forwards to the 2-Wheeler Industry in India. As a result of the surging pollution, the national government has launched stringent policies to curb vehicular emissions. In particular, the jump from Bharat Stage V (BSV) to BSVI emission standards is expected to benefit the Indian electric scooter and motorcycle market, by raising the prices of petrol-driven two-wheelers by 7-15%. From 1st April 2020 onward, automakers are only allowed to sell BSVI-compliant vehicles in the nation, which is driving the push toward electric variants.
For extracting the maximum revenue from the rapidly growing Indian electric scooter and motorcycle market, original equipment manufacturers (OEMs) are expanding their facilities. For instance,
Furthermore, the availability of a considerable number of electric two wheeler models, their low cost, as well as their availability as a substitute for conventional fuel-based vehicles and these are fueling the demand in the India Electric vehicle market.
The India EV market is consolidated due to presence of major players active in the market owing to cheap and readily available manpower. However, established players in the market are introducing their new model's, product launches to gain competitive edge over other players. For instance,
The startups are expanding their presence by raising funds from investors, tapping in new and unexplored cities. Companies are investing a tremendous amount on R&D and launching new models to mark their presence in the market.