India’s EV market is set for rapid growth, with sales projected to reach 10 million units by 2030, supported by government initiatives.
India has been experiencing a rise in the sales of EVs and it is expected to grow at the CAGR of 35 to 40% by 2027. The report also forecasts that the sales of brand-new EVs could reach 3-4 million by 2025 and 10 million by 2030 at the latest, which proves the increasing boost of the EV market in the country.
Two- and Three-Wheeler Dominance
Two- and three wheelers are currently the biggest segment of India’s EV market and accounts for approximately 80% of the total EV market sales. The government has been keen on formulating policies and making adjustments, such as the PLI scheme and cheaper import tariffs of critical minerals to enhance domestic production and create sustainable growth for this sector.
Infrastructure and Policy Support
The expert in the field of electric vehicles, Arvind Kothari, the founder of Niveshaay, noted that policy and market maturation are now in the middle path for India to become the important market of the global EV industry. Nevertheless there are some challenges such as lack of enough charging stations, and the country is advancing. The growth of the EV market will rise to 10 to 15% of the total new vehicle sales by 2030 and India may have more than 2 million charging points.
Government Initiatives
Manish noted that the Indian government is still encouraging people to own EVs including through FAME; outlay for which was increased to Rs 26.71 billion in the 2024-25 Union Budget. Moreover, financial support has been provided through the Electric Mobility Promotion Scheme (EMPS) to the tune of Rs 5 billion intended to boost electric two- and three-wheelers.
India’s Global Potential
As India is set to be a major player in the future EV market boosted by the demands arising from urbanization and increasing population, FAME, EMPS, and the PLI scheme has been launched to support the Indian auto industry.
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