The Indian EV market is expected to continue its growth spree during the forecast period. Several key factors, including government subsidies and policies, rising fossil fuel costs, decreasing costs of EV batteries, expansion of charging infrastructure, increase in domestic EV manufacturing, and growing consumer interest in electric mobility is driving the Indian electric vehicle market.
However, the limited range and high cost of EVs compared to conventional vehicles, and the infantile charging infrastructure market in the country is a major hindrance, as it limits the widespread adoption of EVs. The lack of standardization in charging technology also presents challenges to the growth of the market.
Furthermore, India's dependence on imports for key EV components makes it difficult to achieve economies of scale and bring down the cost of EVs on par with conventional vehicles. Consumer scepticism and lack of awareness about EVs are also factors that are hindering their adoption in the Indian market.
The electric vehicle (EV) market in India has shown impressive growth in vehicle sales past year (2022). The 999,849 EVs sold in 2022 represent a significant 210% year-over-year increase over the 322,871 units sold in 2021. The two- and three-wheeler markets were responsible for the majority of the growth. As they are leading the sales of electric vehicles in India because they are cheaper than electric passenger cars or large commercial vehicles.
India made a commitment to reduce its carbon footprint by 33–55% below 2005 levels by 2030 at COP21. With road transportation accounting for 80% of consumption, India's transportation sector has become the third-largest oil consumer in the world as a result of the exponential rise in automotive adoption in the nation over the previous ten years. The shift to more environmentally friendly mobility solutions in the transportation sector can be extremely important for achieving the GHG emission target agreed upon under NDC (Nationally determined contributions).
The shift toward clean mobility is one of the federal government's top priorities, owing to which the government of India launched the scheme “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”, popularly known as FAME India scheme in April 2015 as part of its National Electric Mobility Mission Plan. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.
The federal government has recently made changes to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) II scheme to promote faster adoption of electric and hybrid vehicles by providing upfront incentives on purchases of electric vehicles.
In order to support public EV adoption, the government has also extended permissions for the installation of private charging stations in homes and workplaces in an effort to enhance the number of EV charging stations. As a result, anyone may now easily request the installation of a private charging point from the municipal or state nodal office.
Additionally, the government has given permission for the installation of EV charging stations in shopping centres, apartment buildings, office buildings, restaurants, hotels, and other public locations.
Several Indian state governments have adopted EV-specific policies with the goal of enticing investment and creating jobs in their particular states by offering both supply-side and demand-side incentives. To encourage EV manufacturers, incentives are frequently provided, such as capital interest subsidies, stamp duty reimbursements, tax exemptions, SGST reimbursement, and the supply of interest-free loans.
The electric vehicle industry in India is picking pace with 100% FDI possible, new manufacturing hubs, and an increased push to improve charging infrastructure. Federal subsidies and policies favoring deeper discounts for Indian-made electric two-wheelers as well as for localized ACC (advanced chemistry cell) battery storage market are other growth drivers for the Indian EV industry.
The two-wheeler segment dominates the Indian electric vehicles market. Electric two-wheelers represented 62.23% (622,337 units) of total India EV sales in 2022. They also represent 4% of the country's total two-wheeler market, which had cumulative sales of 15.3 million two-wheelers (1,53,07,255 units).
An astounding 89% of total sales are accounted for by the top 10 OEMs, which include Ola Electric, Okinawa Autotech, Hero Electric, Ampere Vehicles, Ather Energy, TVS Motor Co, Bajaj Auto, Pur Energy, Revolt Intellicorp, Benling India Energy. Other notable OEMs are also engaged in a competitive struggle to dominate the growing electric two-wheeler market in India.
The passenger EV segment is gradually growing. The electric car sales were 37,792 units in 2022. Accordingly, the market for electric four-wheelers in India represents a market share of close to 4% of overall EV market in India.
The business with the largest portfolio of EVs, Tata Motors, has sold 30,284 units and holds an 80% EV market share of India. With 3,390 vehicles, MG Motor India holds 9%, the second largest market share of electric vehicles in India.
With 337,335 retailed units in 2022, electric three-wheelers were the other significant growth driver for the commercial EV market and accounted for 34% of total EV sales in India.
Heavy and medium commercial electric vehicles are still in the pilot stages in India. The Indian government has plans to deploy electric buses for public commuting and has even started implementing the plan by introducing electric buses in a phased manner in some cities.
For instance, up to 50 electric buses were introduced in Delhi with assistance from the FAME India Phase II scheme in Dec 2022. The government placed orders for a total of 3,538 electric buses. Out of those, a total of 1,716 buses have been deployed so far.
The rise in cost of gasoline, diesel, and compressed natural gas, as well as state subsidies and incentives provided under FAME II, are all factors that will contribute to the domestic EV industry's sales growth in 2022. It also helps that consumers are becoming more aware of the importance of using environmentally friendly transportation. Certainly, another major driver is the long-term affordability of EV ownership costs.
*The recent developments list is not exhaustive
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1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Key Company Profiles
7. Competitive Landscape
8. Conclusions and Recommendations
List of Tables & Figures
Total Annual Electric Vehicle Sales in India (2013-2022)
Total Annual Two-Wheeler Electric Vehicle Sales in India (2013-2022), by no of Units
Total Annual Three-Wheeler Electric Vehicle Sales in India (2013-2022), by no of Units
Total Annual Four-Wheeler Electric Vehicle Sales in India (2013-2022), by no of Units
India Electric Vehicles Market Revenue (in USD million), 2022-2028
India Electric Vehicles Market Revenue (in USD million), by Vehicle Type, 2022-2028
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