Indian EV Market Expected to Expand at a CAGR Exceeding 40% Through 2027

17 Sep 2024

Mumbai: The Indian Electric Vehicle (EV) market is projected to grow at a Compound Annual Growth Rate (CAGR) of 35-40% through 2027, according to a recent report by Niveshaay. The study predicts EV sales could reach 3-4 million units by 2025 and 10 million by 2030. Currently, the market is dominated by two- and three-wheelers, which make up about 80% of EV sales.

Government initiatives such as Production Linked Incentive (PLI) schemes and reduced customs duties are aimed at boosting local manufacturing and reducing import dependency. By 2030, EVs are expected to account for 10-15% of new vehicle sales, with significant growth in electric buses, commercial vehicles, and private cars. The report also anticipates the establishment of over two million public charging stations nationwide.

Increased budget allocations for the EV sector, from INR 10,000 crore in FY2019-20 to INR 22,623 crore in FY2023-24, and new incentives like the INR 500 crore Electric Mobility Promotion Scheme (EMPS) are expected to further drive adoption. With strong government support and a growing market, India is set to become a key player in the global EV industry, particularly among emerging markets.

In contrast, while China led global EV sales with a 60% share in 2023, India’s expanding population and urbanization are propelling demand for affordable electric mobility.