Description
The Indian EV market is predicted to increase from USD 23.38 billion in 2024 to around USD 78.62 billion by 2030, showing strong and steady growth through 2030 as companies increasingly shift focus to this segment, supported by robust government leadership. In terms of adoption, the India’s electric vehicle sales reached 1.99 million units in 2024, from 1.52 million units in 2023, a growth of 31% over the calendar year 2023. India aims to increase the proportion of electric vehicle sales to 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two wheelers and three wheelers by the year 2030. This equates to an ambitious objective of 80 million EVs on Indian roads by 2030 as per the estimates of CII.
The growth of the Indian electric vehicle (EV) market is being supported by various government initiatives and policy measures aimed at accelerating EV adoption. One of the key initiatives is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME India) Scheme, which provides incentives for advanced battery-powered and registered electric vehicles. The scheme focuses on promoting affordable and environmentally sustainable transportation by supporting vehicles used for public transport and commercial purposes, including electric three-wheelers (e-3Ws), four-wheelers (e-4Ws), and buses (e-buses). In addition, privately owned registered electric two-wheelers (e-2Ws), which constitute a major segment of the market, are also eligible for incentives under the scheme. These government-led efforts are playing a crucial role in boosting EV adoption and driving the growth of the Indian electric vehicle industry.
Recent Developments
• The Government had announced Phase II of the FAME India Scheme initially for five years, effective from April 1, 2019, with an outlay of INR 10,000 crore.
• In September 2024, the Government approved the PM Electric Drive Revolution In Innovative Vehicle Enhancement(PM E-DRIVE)scheme, to replace FAME.
• The Government approved the PLI Scheme for Automotive Sector on September 15, 2021, with a budgetary outlay of Rs. 25,938 crores for five years (FY2022- 23 to FY2026-27). The scheme provides incentives of up to 18% for electric vehicles.
Key Highlights of the Report
• The Indian government has set a goal for EVs to constitute 30% of new private vehicle registrations by 2030. To accommodate this substantial increase in EV adoption, India will require a total of 3.9 million public and semi-public charging stations, maintaining a ratio of 1 station for every 20 vehicles.
• Indian automakers has plans to launch nearly a dozen new EVs in 2025, focusing on premium models, as India’s EV sales rose 20% despite slowing global demand, with a 30% target by 2030.
• In the year 2024, over 50% of 3-wheelers, about 5% of 2-wheelers, and 2% of cars bought were EVs.
• Among the passenger vehicles, Electric 2-wheeler (E2W) segment lead the charge, being followed by Electric 3-wheeler (E3W). Electric 4-wheeler (E4W) segment accounted for xx% share in 2024, while E-Buses captured least share in the same year.
• India’s E2W market is led by Maharashtra, which has consistently held the largest share of sales. In 2024, Maharashtra recorded the highest E2W sales followed by Karnataka, Tamil Nadu, and Uttar Pradesh.
• The major OEMs in the Indian E2W market landscape are Ola Electric, TVS Motors, Bajaj Auto and Ather Energy. Ola Electric registered the highest sales, followed by TVS Motors, Bajaj Auto, and Ather Energy.
• India’s E3W sales increased by 18.4% compared to 2023. The growth is driven by sustained demand for passenger transport and last-mile delivery services, fueled by government incentives like the PM E-Drive scheme and a lower cost of ownership compared to ICE alternatives. The major OEMs in the Indian E3W market landscape are Mahindra Last Mile Mobility, Baja Auto, and Piaggio Vehicles.
• Tata Motors dominated the Indian E4W market landscape with over 50% share in 2024, followed by MG Motor, and Mahindra& Mahindra. Tata Motors’ success is driven by a combination of popular models such as the Nexon EV and Tigor EV, which offer a strong balance of affordability, range, and reliability.
• In 2024, Delhi recorded the highest electric buses sales, followed by Maharashtra, Karnataka and Gujarat.
• India’s electric bus sales are surging, fueled by government-backed procurement and urban clean mobility goals. The lower operating costs and rising focus on
sustainability are making electric buses a preferred choice for fleet operators.
• India’s electric goods vehicle sales are accelerating, driven by cost efficiency, government incentives, and the rapid growth of e-commerce–led last-mile delivery.
