Mordor Intelligence has published a new report on the India electric vehicle (EV) Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The India Electric Vehicle Market is projected to be valued at USD 34.8 billion in 2024 and is anticipated to grow to USD 120 billion by 2030, registering a Compound Annual Growth Rate (CAGR) of 22.92% during the forecast period (2024-2030).With increasing exhaust emissions and growing environmental concerns, the country has been prioritizing and advancing efforts toward the development of sustainable transportation.
Key Trends Driving the India electric vehicle (EV) Market
- Government Initiatives and Policies
The Indian government’s commitment to promoting electric mobility is evident through various initiatives. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, now in its second phase, offers subsidies and incentives to both manufacturers and consumers. Additionally, state-level policies, such as Uttar Pradesh’s removal of registration taxes on strong hybrids, further encourage EV adoption. These measures aim to achieve the national target of 30% EV penetration in new car sales by 2030.
2. Technological Advancements and Infrastructure Development
Advancements in battery technology and the expansion of charging infrastructure are pivotal in addressing range anxiety and enhancing the feasibility of EVs. The government’s focus on establishing a comprehensive charging network is evident, with 6,800 slow charging and 4,100 fast charging stations reported in 2022. However, the current ratio of one charging station per 135 EVs indicates the need for further infrastructure development to match global standards.
3. Rising Consumer Awareness and Environmental Concerns
Increasing awareness about environmental sustainability and the long-term cost benefits of EVs are influencing consumer preferences. The rising fuel prices and the government’s emphasis on reducing carbon emissions are prompting consumers to consider electric mobility as a viable alternative. This shift is evident in the growing sales of electric two-wheelers and passenger vehicles across the country.
Market Segmentation
The Indian EV market is segmented based on vehicle type, fuel category, and key players:
- By Vehicle Type:
- Two-Wheelers: Dominating the market with an 89.17% value share in 2023, two-wheelers are favored for their affordability and convenience in urban areas.
- Passenger Vehicles: Experiencing growth due to increasing consumer demand for eco-friendly transportation options.
- Commercial Vehicles: Gradually adopting electrification, especially in urban logistics and public transportation sectors.
- By Fuel Category:
- Battery Electric Vehicles (BEVs): Leading the market with a 98.38% value share in 2023, driven by government incentives and rising fuel prices.
- Hybrid Electric Vehicles (HEVs): Gaining traction as a transitional technology, with sales increasing by 20% in the first eight months of 2024.
- Fuel Cell Electric Vehicles (FCEVs): In the nascent stage, with potential growth during the forecast period.
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Key Players
The Indian EV market features several prominent players across different segments:
- Two-Wheelers:
- Ola Electric Mobility Pvt. Ltd.
- Ampere Vehicle Private Limited
- Ather Energy Pvt. Ltd.
- Okinawa Autotech Pvt. Ltd.
- TVS Motor Company Limited
- Passenger Vehicles:
- Tata Motors Limited
- MG Motor India Private Limited
- Hyundai Motor India Limited
- Mahindra & Mahindra Limited
These companies are investing in research and development, expanding production capacities, and exploring new markets to maintain competitiveness.
Industry Related Reports:
Electric Vehicle Market: The Electric Vehicles Market is categorized by Vehicle Type (Commercial Vehicles, Passenger Vehicles, Two-Wheelers), Fuel Category (BEV, FCEV, HEV, PHEV), and Region (Africa, Asia-Pacific, Europe, Middle East, North America, and South America). The report provides market size data in terms of both market value (USD) and market volume (units).
Asia-Pacific Electric Vehicle Market: The Asia Pacific Electric Vehicle Market is segmented by Propulsion Type (Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-In Hybrid Electric Vehicles, and Fuel Cell Electric Vehicles), Vehicle Type (Passenger Cars and Commercial Vehicles), Charging Type (Normal Charging and Fast Charging), and Country (China, India, Japan, South Korea, and the Rest of Asia-Pacific).
China Electric Vehicles EV Market: The report highlights the China Electric Vehicle Market Share by Company, segmented by Vehicle Type (Passenger Cars and Commercial Vehicles) and Drivetrain Type (Battery Electric Vehicles and Plug-In Hybrid Electric Vehicles).
Conclusion
The Indian electric vehicle market is on a robust growth path, driven by increasing consumer demand, supportive government policies, and technological advancements. The focus on electric mobility and expansion into rural markets are expected to further propel the industry’s growth. As key players continue to innovate and adapt to changing market dynamics, the industry is poised to achieve significant milestones during forecast year.
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