By 2033, the global EV industry is anticipated to reach USD 2,108 billion, with India’s EV market capable of achieving annual volumes of 10 million units.
By 2033 the global electric vehicle (EV) industry is set to increase rapidly in the next year, reaching $2,108 billion, according to Axis Securities Analysis. The market is now valued at $255 billion, with a compound annual growth rate (CAGR) of 23% from 2024 to 2033.
Government Allocates Rs 10,900 Crore for EV Growth
The report suggests that India’s EV market could grow to 10 million units annually by 2033, a significant jump from 1.7 million in FY24. This will be spurred by conducive government policies, new product launches, cost cut, and technological changes. On the other hand, the Centre has offered incentives of Rs 10,900 crore over the next 2 years to enable the sale of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
Subsidies Boost EV Sales Across Multiple Sectors
Furthermore, each electric two-wheeler would receive a Rs 10,000 subsidy, and electric three-wheelers would receive Rs 50,000 till March 2025. In addition, Rs 500 crore has been set aside for e-trucks, with incentives related to scrappage certificates from certified scrapping centres, and another Rs 500 crore for the deployment of e-ambulances, including hybrids.
Rs 2,000 Crore Allocated for EV Charging Stations
There has also been an allocation of Rs 2,000 crore from the government to build EV public charging stations across the country, which comprises the installation of
- 22,100 -fast chargers for electric four-wheelers
- 1,800 -chargers for electric buses
- 48,400 -chargers for electric two- and three-wheelers
Favorable Tax rates
In addition, the government has introduced favourable tax rates to make electric vehicles more reachable. Electric vehicles are being taxed at a rate of 5%, whereas hybrid vehicles are charged at 28% and a massive 49% for internal combustion engine (ICE) vehicles.
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