The Indian Electric Vehicle Market was worth USD 5 billion in 2020, and it is predicted to grow to USD 47 billion by 2026, with a CAGR of more than 44% over the forecast period (2021-2026).
The future of electric vehicle market in India is thriving. The central and provincial governments have introduced policies and incentives to encourage the use of electric vehicles in the country, as well as various rules and standards.
With 100 percent FDI allowed, new production centers, and a greater drive to improve charging infrastructure, India’s electric car industry is picking up speed. Other growth factors for the Indian EV industry include federal subsidies and policies supporting deeper discounts for Indian-made electric two-wheelers, as well as a boost for localized ACC battery storage manufacture.
I often get queries from people that they are confused and dicey whether to buy an electric vehicle or not at it has just started booming. They are ambivalent about buying a petrol/diesel car or switch to electric vehicle.
In this write-up, I’m going to share my views about the electric vehicle market in India and its future. I’m sure you’ll have a lot more clarity after going through this article and be able to take a well-thought decision.
Electric vehicle industry in India
The electric vehicle industry in India is a growing industry. The central and state governments have launched schemes and incentives to promote electric mobility in the country and some regulations and standards are also in place. While the country stands to benefit in a large way by switching its transport from IC engines to electric motor-powered, there are challenges like lack of charging infrastructure, high initial cost, and lack of electricity produced from renewable energy. Still, e-commerce companies, car manufacturers, app-based transportation network companies, and mobility solution providers have entered the sector and are slowly building up electric car capacity and visibility
India’s automobile sector is the world’s fifth-largest, with plans to become the third-largest by 2030. Reliance on traditional modes of fuel-intensive mobility to cater to a large domestic market would not be sustainable. In order to solve this, federal authorities are designing a “Shared, Connected, and Electric” mobility alternative, with an ambitious goal of achieving 100 percent electrification by 2030.
In 2015, India agreed to cut the emission intensity of its gross domestic product (GHG emissions per unit GDP) by 33 percent to 35 percent by 2030, compared to 2005 levels. The government is eager to change the narrative towards electric vehicles in order to satisfy its global commitment and offset the negative impact of automobiles (raising oil import costs and increasing air pollution). By 2023, India’s electric car market is anticipated to be worth $2 billion.
Regardless of the country’s lofty goals, India’s electric vehicle industry is still in its infancy. However, when viewed from a different perspective, India is the world’s greatest unexplored market, particularly in the two-wheeler segment. Under the automatic approach, 100 percent foreign direct investment is permitted in this sector.
How big is the electric vehicle market in India?
Electric Vehicle Market in India was worth USD 5 billion in 2020, and it is predicted to grow to USD 47 billion by 2026, with a CAGR of more than 44% over the forecast period (2021-2026).
The COVID-19 epidemic has had an influence on the Indian electric vehicle market, causing supply chain disruptions and the closure of manufacturing units as a result of ongoing lockdowns and travel restrictions across the country. In India, however, the electric vehicle (EV) sector is still in its infancy. Due to several government programs and policies, it is predicted to expand at a considerably quicker rate during the forecast period.
Electric vehicle market in India 2021
Leading businesses such as OLA Electric Mobility Pvt, Ather Energy, and Mahindra Electrics are rapidly expanding their market presence in response to the opportunity that India’s EV industry affords. Furthermore, certain governments, such as Karnataka and Tamil Nadu, are enacting creative and timely investor-friendly laws in addition to constructing the required infrastructure.
Tesla Inc., an American electric vehicle and renewable energy corporation, recently established its presence in India by forming Tesla India Motors and Energy Pvt Ltd in Bengaluru.
Ather Energy, India’s first intelligent electric vehicle manufacturer, relocated its US$86.5 million manufacturing from Bengaluru to Hosur in February 2021. (Tamil Nadu). The facility of Ather Energy is said to have a production capacity of 0.11 million two-wheelers per year.
Ola Electric, the unicorn Indian ride-hailing start-up, also announced in March 2021 that it would build the world’s largest electric scooter plant in Hosur (about a two-and-a-half-hour drive from Bengaluru) over the next 12 weeks for a cost of US$330 million, with a goal of producing 2 million units per year. Ola Electric plans to increase production to 10 million vehicles per year by 2022, accounting for 15% of the global e-scooter market.
Electric vehicle market in india 2030
The federal think tank Niti Aayog produced a paper titled “India’s Electric Mobility Transformation” in April 2019, estimating that by 2030, Electric Vehicle Market in India will be 70% for commercial vehicles, 30% for private vehicles, 40% for buses, and 80% for two- and three-wheelers. If met, these goals might result in a net reduction of 14 exajoules of energy and 846 million tonnes of CO2 emissions throughout the lifetime of the deployed cars. Electric vehicles sold until 2030 can save 474 million tonnes of oil equivalent, or US$207.33 billion, over their lifetime.
India stands to benefit greatly from widespread use of e-mobility. Manufacturing of e-vehicles and their associated components is predicted to boost the percentage of manufacturing in India’s GDP to 25% by 2022 under the Make In India programme.
This will assist India in meeting its worldwide goals to reduce carbon emissions and boost the use of cleaner energy and transportation sources, as outlined in the UNFCCC’s Nationally Determined Contributions (NDCs) and the [email protected] initiative.
Electric vehicle charging infrastructure in India
According to current estimates, 80% of charging takes place in private locations such as the vehicle owner’s home and, in certain cases, the office. Range anxiety is a condition caused by a shortage of publicly accessible charging stations. There is no guarantee that a motorist will be able to replenish the charge if it runs out.
According to the charging rules provided by the Ministry of Power in 2018, Indian EV manufacturers are now using the DC-001 protocol for their vehicles. The Indian government and numerous private companies have constructed Bharat DC-001 standard EV charging stations across the country in recent years, anticipating carmakers to follow suit. Chargers in the DC-001 series are designed to be low-cost, environmentally friendly, and suitable for vehicles with entry-level powertrains. More than 300 DC-001 charging stations have been constructed in Delhi alone.
In 2019, India has only 650 charging stations, compared to 0.3 million in China. One of the main reasons why customers are hesitant to buy electric vehicles is a lack of charging infrastructure.
Will electric cars succeed in India?
Given the EV industry’s expanding awareness, cost-effective solutions, and convenience, it’s reasonable to conclude that the future of Electric Vehicle Market in India is positively electrifying.
India wants to achieve its goal of having 100 percent electric vehicles by 2030. Factors such as increasing government backing, reducing technology costs, the country’s growing interest in EVs, and alarming pollution levels, among others, would undoubtedly fuel and expedite India’s transition to electric vehicles, allowing the government to get closer to its vision. There is, however, still a long way to go.
Why is EV expensive?
A major factor that influences our purchase decision is why is EV expensive? While electric automobiles have fewer moving components than gasoline or diesel vehicles, the lithium-ion battery is the most expensive component. They account for more than half of the vehicle’s cost. Batteries are expensive to repair or replace, which is one of the reasons why insurance premiums are higher.
The cost of these batteries is being reduced by automobile makers. The insurance price is predicted to decrease when the cost of the battery decreases.
Which electric cars are available in Indian market?
People are now looking for what is the most sold electric vehicles in India? There are now nine electric automobiles available for purchase. The Strom Motors R3 is the cheapest electric car in India, while the Mercedes-Benz EQC is the most expensive. Audi e-Tron GT, Mercedes-Benz EQA, and Renault Zoe are among the upcoming electric automobiles in India.
- Tata Tigor EV. Rs11.99 – 13.14 Lakh* Check September Offers.
- Audi e-tron. Rs99.99 Lakh – 1.17 Cr* …
- Tata Nexon EV. Rs13.99 – 16.85 Lakh* …
- Jaguar I-Pace. Rs1.05 – 1.12 Cr* …
- Strom Motors R3. Rs4.50 Lakh* …
- Mercedes-Benz EQC. Rs1.06 Cr* …
- MG ZS EV. Rs20.99 – 24.58 Lakh* …
- Hyundai Kona Electric. Rs23.79 – 23.97 Lakh*
Conclusion: What is the future of electric vehicles in India?
Electric car manufacture is getting increasingly popular, and its market share is likely to grow significantly. By 2022, India’s GDP is predicted to increase by a staggering 25%. The best aspect is that, in addition to decreasing pollution, EVs can reduce oil imports by $60 billion by 2030.