Indian Economy News

India aims for 30 % of all vehicle sales to be electric by 2030: Care Edge Ratings

  • IBEF
  • March 26, 2024

An analysis by CareEdge Ratings underscores a significant shift in India's vehicle market, with traditional fuel-powered vehicles giving way to alternative fuel options. Petrol vehicle sales decreased from 86% in 2020 to 76% in 2023, while diesel sales decreased slightly from 12% to 11%. Conversely, alternative fuel-driven vehicle sales surged by over 400% in CY 2023. Electric vehicles (EVs) are gaining traction due to government incentives and declining battery costs, aiming for 30% of all vehicle sales to be electric by 2030. To support this transition, the Indian government is incentivizing the development of charging infrastructure through subsidies and grants.

Despite higher upfront costs, EVs offer lower lifetime expenses, making them increasingly competitive, especially with the recent US$ 180 million (Rs. 1,500 crore) boost in FAME-II funding. CareEdge Ratings from Mr. Arti Roy sees this as a pivotal moment for India's automobile industry, where EVs and compressed natural gas (CNG) challenge the dominance of petrol and diesel vehicles. On March 15, the Union Government's approval of a comprehensive scheme further underscores India's commitment to becoming a global EV manufacturing hub, promoting indigenous production and cutting-edge technology. This initiative aims to stimulate investment, competition, and economies of scale, ultimately reducing production costs and advancing the Make in India agenda.

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