The Indian automotive landscape in India is witnessing a paradigm shift. As India is committed to fulfilling the 2015 Paris Agreement, the Union Government of India and 17 state governments provide subsidies and incentives to the electric vehicle industry. Till December 21, 2023, around 12,16,380 vehicles have been subsidised. The total amount spent by the government on EV subsidies is around Rs. 5,422 crore. Thanks to the campaigns, subsidies, and incentives in favour of EVs, its sales grew to 15,29,947 in 2023, a y-o-y growth of 49.25%. But what next? Is the future of electric cars in India as good as its present? Let’s explore.
India’s Electric Vehicle (EV) revolution charges forward!
With a remarkable 200% increase in registered EVs from 2021 to 2022, over 50% of all 3-wheeler vehicles sold in 2023 were electric. The surge in EV adoption propels India towards a greener and sustainable future.… pic.twitter.com/ta8jPBE3JX
— MyGovIndia (@mygovindia) February 8, 2024
Future Of Electric Cars- Indian Scenario in 2030
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EV Market Size Growth (Projected)
During 2022-29, the annual growth rate of the EV market is estimated to be 66.52% CAGR (Compound annual growth rate). The market size of electric vehicles is projected to jump from US$ 3.21 billion to US$ 113.99 billion in just 7 years (2022-2029).
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EV Sales Growth (Projected)
According to 2030 projections, India expects to increase electric vehicle sales by:
- 30% in the private car segment
- 70% in the commercial car segment
- 40% in bus segment
- 80% in 2-wheeler and 3-wheeler segments
By 2030, India expects to increase the total number of electric vehicles on roads to 80 million EV units.
Also Read: Best Affordable Electric Cars In India 2024
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Rapid Increase in EV Charging Stations (Estimated)
As per a CII report, India needs at least 1.32 million EV charging stations by 2030. To maintain the ideal ratio of 1 electric charger for 40 electric vehicles, India has to set up 400,000 charging stations every year. If this target is achieved, only then can India achieve the minimum target of 1.32 million EV charging stations by 2030. \
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EV Battery Market Size Growth (Projected)
During 2023-2028, the battery market for electric vehicles is likely to skyrocket from US$16.77 billion to $27.70 billion.
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Jobs (Estimated Projections)
By 2030, the EV industry is expected to create around 50 million jobs (direct or indirect).
Also Read: Self Driving Electric Cars In India: Future Prospects – Know It All Now!
Final Word
The Indian government has implemented multiple subsidy and incentive schemes to promote electric cars in India. Some of them are FAME II (Faster Adoption of Manufacturing of Electric Vehicles Scheme – II) and PLI (Production Linked Incentive Scheme). These policies incentivised EV manufacturing and also promoted clean energy transportation in India.
During the 2023-24 Union Budget announcement, Finance Minister Nirmala Sitharaman announced a capital investment of Rs. 35,000 crores to promote EV adoption and accelerate the transition towards sustainable energy. This budgetary allocation is expected to achieve India’s energy transition goals. The Union Government expects that these steps will help it successfully move towards net-zero targets by 2070.
For a bright future of electric cars in India, the Union Government has increased the FAME-II scheme’s budgetary allocation to Rs. 51.72 billion. In addition, the customs duty on Lithium-ion batteries (which are used in electric vehicles) has been reduced.
The measures outlined in the budget are a positive step towards achieving sustainable mobility solutions and also fulfil the 2015 Paris Agreement. The future of Indian transportation seems to be greener, thanks to the government’s EV promotional initiatives and its prioritisation of investments in clean energy infrastructure.