PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1468719
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1468719
Key Highlights
The India electric car market size was 19,778 units in 2023, and it will increase to 430,603 units, advancing at a 56.0% CAGR, by 2030.
This growth is because of the increasing FDI, government effort to develop charging infrastructure, and construction of manufacturing facilities.
The EV sector is driven by the backing of the government and the increasing price of petroleum, which is making people search for means to decrease their monthly expenditures.
Government subsidies and schemes are playing an important part in the production as well as sales growth of electric vehicles.
The Indian government, to decrease air pollution, has decided to shift to EVs from traditional fuel-driven automobiles, in addition to employing several strict regulations.
The Paris Agreement, which focuses on decreasing carbon emissions, reducing oil imports, and improving urban air quality, is the foundation for the India EV strategy.
With the surging population and its increasing demand for vehicles, those running on diesel and petrol are becoming progressively unfeasible as India gets most of its crude oil from outside.
As a result, the government of India is concentrating on encouraging the acceptance of electric vehicles, including cars, to decrease carbon emissions to net zero by 2070.
Market Insights
Uttar Pradesh was the largest contributor to the industry in 2023 as it is home to the biggest consumer base and numerous suppliers across the electric vehicle value chain.
The state cabinet, in October 2022, accepted the new EV rule, titled "Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022", to profit not only personal automobiles but also commercial automobiles.
Maharashtra will propel at a significant compound annual growth rate in the years to come.
The BEV category was the largest contributor to the industry in 2023, with a share of approximately 45%, and it will remain the largest throughout this decade.
This is mainly because of the rising fondness of customers for EVs over ICE automobiles and restrictions on vehicular carbon dioxide emissions.
The higher subsidies provided by the government for buying BEVs than HEVs and PHEVs, together with the decreasing battery cost and accessibility of different BEV models, boost sales growth.
The SUV category will propel at the fastest compound annual growth rate, of 56.4%, in the years to come.
This is because of the increasing disposable salary of the people and the growing need for premium cars in this nation.
The lithium-iron phosphate (LFP) category led the industry in 2023, with a share of approximately 40%, and it will remain leading throughout this decade.
This can be mainly ascribed to the longer life as well as lower prices of lithium-iron phosphate batteries.
Personal users led the industry, and it will continue this trend during this decade.
This is primarily because of the increasing disposable salary of the people and the rising affordability of these cars.
The India electric car industry is very consolidated, with some players providing these vehicles.
Owing to the Indian government's initiatives like incentives and advantageous guidelines, to increase EV acceptance, other OEMs are also entering this industry.