Key Market Insights
The India electric vehicle market size was estimated at 167,041 units in 2020 and it is projected to reach a value of USD 17.3 Billion by 2030, growing at a CAGR of 35% over the forecast period. Supportive government policies and increasing domestic production of EVs is driving the Indian EV market growth.
The sales of EVs in India have more than doubled between 2017 to 202, from around 69,012 units in 2017 to 167,041 units in 2020. The Indian government is playing a key role in this massive market growth. For instance, The Government of India has recently launched the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II scheme in 2019, the scheme is focused on offering incentives on EV purchases as well as EV charging infrastructure installation in India. In the previous version of the scheme FAME I distributed incentives of INR 343 Crore to support more than 2,78,000 EV adoption in India.
Challenges such as lack of EV charging infrastructure in India, unavailability of sufficient land parcels to establish EV charging grids, high prices of lands are hindering the Indian Electric Vehicle Market Growth. Moreover, the majority of the parts and components required for manufacturing EVs and EV charging stations in India are imported from China, Taiwan, Japan, and South Korea. Heavy import duty on these parts & components creates resistance for manufacturers to offer EVs at an affordable rate in India. For instance, the import duty for EVs is 100% in India, unlike other imported ICE vehicles. It is high time for the Indian government to reduce the import duty to boost the EVs adoption rate in India.
COVID-19 Impact on India electric vehicle market
COVID-19 hampered the ICE vehicle demand by as much as 16% globally in 2020. However, the EV industry growth in India continued, with rising in demand by as much as 55% between 2020-2021. Many Indian EV manufacturer start-ups raised significant funding and have also launched many high-tech EV products in the Indian market this year. For instance, OLA Electric raised $200 Million & is currently valued at more than $5 billion.
High crude oil prices resulted in a huge spike in petrol & diesel prices in India. For the first time in history, the prices of both fuels crossed INR 100/Litre in 2020. Such growing prices of fuel are influencing many new buyers to opt for an electric vehicle instead of an ICE vehicle.
Indian Governments FAME II Scheme to Boost Market Growth
In 2019, The Government of India launched its visionary FAME II scheme to boost EV adoption in India. The scheme is a successor of FAME I scheme, that encouraged state governments to replace public & shared transportation such as buses with their electric variants. The FAME II scheme is aiming to boost the sales of EVs to 1 Million units by end of 2022. Although the actual on-ground replacement was very low, the scheme encouraged many local and international players to invest in the Indian EV industry.
The Society of Manufacturers of Electric Vehicles (SMEV) has some contradictory views towards the FAME II scheme, the association is assuming that the criteria stated in the FAME II scheme shall increase the manufacturing costs significantly, hampering the EV adoption in India. Therefore, the association has requested the government to either revise the latest draft or re-implement the old FAME I scheme to encourage both electric vehicle manufacturers as well as buyers.
The India EV market report includes various market segments such as vehicle type, power source type, and based on geography.
- India Electric Vehicle Market, By Vehicle Type, 2018-2030 (USD Billion, Units)
- Passenger Cars
- Three Wheelers (E3W)
- Two Wheelers (E2W)
- India Electric Vehicle Market, By Power Source Type, 2018-2030 (USD Billion, Units)
- Battery Electric Vehicles
- Hybrid Electric Vehicles
- India Electric Vehicle Market, By Battery Type, 2018-2030 (USD Billion, Units)
- Lead Acid
Key Players Covered in The Report
The report includes detailed company profiles of below mentioned top electric vehicle companies in India in 2022.
- Ampere Vehicles Pvt. Ltd
- Ather Energy Pvt. Ltd
- Bajaj Auto Corp.
- Hero Electric
- Hyundai Motor India
- JBM Auto Limited
- Kinetic Green Energy & Power Solutions Ltd
- Lohia Auto Industries
- Mahindra & Mahindra Limited
- MG Motor India
- Okinawa Autotech Pvt. Ltd
- Olectra Greentech Ltd
- Piaggio Vehicles Pvt. Ltd.
- Revolt Intellicorp Private Limited
|Base Year for Estimation||2021|
|Segments Covered In The Report||
What’s included in the report?
- Qualitative Insights
- Porter Five Forces Analysis
- SWOT Analysis
- Industry Value Chain Analysis
- Company Ranking Analysis, 2021
- Penetration & Growth Prospects Mapping
- COVID-19 Impact Analysis & Future Perspective
- Technology Development Roadmap
- Strategic Initiatives & Market Trends
- Quantitative Insights
- India Electric Vehicle Sales Volume (Units) & Value (USD Billion), 2018-2030
- Company Financial Analysis
Who should buy this report?
- CEOs, CTO, and other top-level management in electric vehicle manufacturing companies in India & abroad.
- Investors & venture capitalists
- EV parts & component suppliers
- Researchers & Analysts
- Journalists & Media
Frequently Asked Questions (FAQ)
- What is the electric vehicle market size in 2021?
India electric vehicle market size was estimated at 167,041 units in 2020 and it is projected to reach a value of USD 150 Billion by 2030.
- What is the CAGR for the market?
The market is expected to grow at a CAGR of 45% between 2022 to 2030.
- Which is the largest market for electric vehicles in India?
Maharashtra is the largest state for the electric vehicle market in India with a 41% market share in 2021.
- Which are the leading electric vehicle companies?
Tata Motors Limited, Mahindra & Mahindra Limited, MG Motor India, Toyota Kirloskar Motor, Maruti Suzuki India Limited, OLA Electric, Ather Electric are among the top EV manufacturers in India.