Indian Economy News

Electric vehicle sales in India are likely to grow to over 1.6 crore units by 2030 at a CAGR of 45.5%

  • IBEF
  • October 18, 2023

Over 1.6 crore annual electric cars (EVs) are expected to be deployed in India by 2030, as the country's automotive ecosystem is rapidly transitioning. Similarly, Maharashtra (2,531) and Delhi (1,815) are expected to have the most charging stations in India.

The findings are based on a new 'EV-Ready India Dashboard' launched by the Union Minister of Power, New and Renewable Energy, Mr. R K Singh. The dashboard was created by the OMI Foundation, a policy research and social think tank focused on mobility and governance.

It is a freely accessible digital portal that aggregates sales data from all VAHAN states and Telangana, as well as displays the state of charging infrastructure, battery demand patterns, and TCO comparisons. It also monitors current EV investments, anticipates market growth, and analyses vehicle emissions. It allows customers to reserve charging space before they arrive at their destination.

According to the EV-Ready India Dashboard, EVs will expand at a CAGR of 45.5% between fiscal years 2022 and 2030, rising from annual sales of 6,90,550 electric two-wheelers (E-2Ws) in 2022 to 1,39,36,691 units in 2030.

According to the data-driven platform, Tamil Nadu is the country's E-2W manufacturing hub, Telangana leads in E-3W manufacturing, Maharashtra leads in E-4W manufacturing, Gujarat leads in battery production, and Karnataka leads in R&D. The lowest public charging supply tariff in Chandigarh is Rs. 3.6 (US$ 0.043) per kWh, which is 73% less than the national average of Rs. 13.74 (US$ 0.17) per kWh. It also claims that India has averted an estimated 5.18 million tonnes of CO2 emissions in 2023, which equates to 85.47 million tree seedlings covering twice the total area of the Lakshadweep islands.

The Union Minister said, “The future is electric. India is already on the path to being EV-ready and leading the conversation on climate action for the transport sector. We have taken active steps to reduce emissions, having already cut emission intensity by 33% in 2019 since 2005, and the capacity for generating renewable energy has multiplied by almost 7X in the last few years, standing at 185K megawatts today. We are confident that India will surpass its target of 50% energy production from non-fossil fuels by 2030”.

He further said, “EVs are critical for this journey both from an energy dependence and environment standpoint and as the number of EVs grows on the roads, we will see India emerging as a leader in climate change. Another important step towards making EVs mainstream is expanding the charging stations, which already are at 10,000 currently”.

G20 Sherpa, Mr. Amitabh Kant said,” Recognizing that the real action in electric mobility occurs at the state level, the dashboard offers comprehensive, state-specific insights. This empowers policymakers to make informed decisions. I urge all state and district authorities to leverage this dashboard as they compete to lead India's EV revolution”.

The Executive Director, OMI Foundation, Ms. Aishwarya Raman said, “The digital platform is meant to enhance knowledge, foster ecosystem-wide collaboration and underpin effective policy-making, as OMI continues to make it more comprehensive, and insightful”.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.