Indian Economy News

India set to drive in new leadership opportunities with electric vehicles (EVs)

India is poised to become a global leader in electric vehicles (EVs). It is driven by an ambitious vision to foster sustainable mobility and capitalise on its vast domestic market. As the world’s fourth-largest automaker and home to one-sixth of the global population, India’s EV market is projected to grow from Rs. 27,417 crore (US$ 3.21 billion) in 2022 to Rs. 9,73,589 crore (US$ 113.99 billion) by 2029. Former NITI Aayog CEO and G20 Sherpa Mr. Amitabh Kant highlights the urgency of embracing green mobility, warning that delayed action could forfeit India’s chance to become the world’s largest EV manufacturer. By 2030, India aims for a 30% market share in EVs, targeting 80 million EVs on the road, while the EV battery market is expected to rise from Rs. 1,43,233 crore (US$ 16.77 billion) in 2023 to Rs. 2,36,586 crore (US$ 27.70 billion) by 2028. Government initiatives like the PM E-Drive scheme, which promotes incentives and infrastructure development alongside industry support, are critical to accelerating EV adoption.
The government’s 7C vision - Common, Connected, Convenient, Congestion-free, Charged, Clean, and Cutting-edge- enables low-cost financing and robust charging networks essential for widespread EV penetration. Forecasts from S&P Global Mobility suggest India’s electric car penetration could reach 19% by 2030 and 32% by 2035. Industry leaders such as Tata Motors and Mahindra & Mahindra are ramping up electrification efforts, supported by investments from non-automotive players like JSW and Reliance Infrastructure. With over 12,000 public charging stations already operational, the Confederation of Indian Industry estimates that 1.32 million charging points will be needed by 2030, presenting significant growth opportunities. Collaboration between government and private stakeholders, investment in battery technology and local manufacturing, and focus on skill development will be pivotal in sustaining India’s rise as a global EV hub, making clean, affordable, and innovative electric mobility a reality.

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