IndiaPress Release

India’s EV market to be $14.9 billion by 2028

DUBLIN, June 30, 2023 /PRNewswire/ — According to “India Electric Vehicle Market By Vehicle Type (Passenger Car, LCV, M&HCV, Two-Wheeler, Three-Wheeler), By Propulsion, By Range, By Charging Time, By Region, By Top 10 States, Competition Forecast & Opportunities, 2018- 2028F” – India electric vehicle market is expected to grow from USD 5,153.79 million in 2022 to USD14,910.33 million in 2028, registering a CAGR of 19.81% 

India is heading towards rapid adoption of green energy through various government initiatives, and subsidies, which in turn escalates sales of electric vehicles across the country and drives the India electric vehicle market in the upcoming years.

With rising pollution levels and the cost of fossil fuels, many countries are adopting green energy, and India is no exception. Electric vehicles are divided into four segments based on propulsion: BEV, HEV, PHEV, and FCEV. BEV, which is fully dependent on the battery, is gaining more popularity due to its zero emission capability.

HEVs are powered by an internal combustion engine with one or more electric motors that use energy stored in batteries that cannot be charged separately. In PHEV, electric vehicles can use battery-powered motors and IC engines independently to run the vehicle. FCEVs, which are more efficient and produce no emissions than conventional IC engines, are powered by hydrogen.

The demand for electric vehicles is increasing rapidly, owing to the increasing shift towards advanced technology and multiple government initiatives in India. Many companies have introduced their advanced technology and innovative product range keeping the cost of the vehicle budget-friendly.

Rising Popularity of Electric Vehicles in the Face of Climate Change

The government is prioritizing the shift towards clean mobility and faster adoption and manufacturing of electric vehicles under the FAME II scheme in India, making them more affordable. The two-wheeler segment holds the dominance in the India electric vehicle market as many youngsters opt for electric two-wheelers for their daily needs and city ride.

Also, COVID-19 has helped the popularity of electric vehicles among customers at a gradual pace. Many new players are emerging with their wide range of products which helps in market competitiveness. Under the Paris Climate Agreement, the Indian government endorses renewable and non-polluting forms of producing electricity.

Advancement in Technology

Rapid technological improvements in the areas of battery capacity enhancement, increasing affordability, more comfort, more battery range, less charging time, less maintenance, and a contribution to pollution management are all factors contributing to the India electric vehicle market growth.

Lithium-ion batteries are fast gaining popularity because they offer more benefits over lead-acid batteries in terms of energy density, thereby offering greater range and faster charging time.

Reducing Oil Imports and Sustainable Energy Production

Due to rising oil prices and urban pollution, a move towards the adoption of green energy can be seen in India.

According to a FICCI and Rocky Mountain Institute report titled ‘Enabling India’s Transition to Electric Mobility,’ the country’s shift toward electric mobility in the passenger vehicle sector could save up to USD300 billion on oil imports and nearly one gigaton of CO2 emissions by 2030. The government is promoting green energy and is focusing on cost-effective transportation.

Competitive Landscape

Major players are investing in research and development, innovations to provide wide range of products. Tata Motors Limited with its strong presence dominates in passenger car segment. In LCV, Mahindra & Mahindra Limited has largest share.

The M&HCV segment was led by PMI Electro Mobility Solutions Private Limited and followed by Tata Motors Limited. With large distribution network coupled with brand awareness Hero Electric Vehicles Pvt. Ltd. captures around 1/3rd market of electric two wheelers. In three-wheelers, YC Electric Vehicle comes on top followed by Saera Electric Auto Pvt. Ltd.

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