In recent years, India has witnessed a remarkable transformation in its automotive industry, with a significant shift towards electric vehicles (EVs). The EV market landscape in India is evolving rapidly, driven by a combination of government initiatives, environmental concerns, and advancements in technology. In this article, we will explore the current electric vehicle landscape in India, the number of EVs on the road, and whether the EV sector is booming in the country.
Delhi, the bustling capital city of India, has been grappling with severe air pollution for years. In a proactive move towards combating this environmental crisis, the Delhi government introduced its Electric Vehicle (EV) Policy in 2020, aimed at promoting the adoption of electric vehicles to reduce emissions and improve air quality. Building on the success and lessons learned from the initial policy, Delhi has recently unveiled the EV Policy 2.0, focusing on an innovative approach: retrofitting.
Read our take on the EV policy 2.0 here – https://www.renewable-india.com/evs-and-batteries/delhis-ev-policy-2-0/
The EV market landscape in India has experienced substantial growth and development. Several factors have contributed to this transformation:
1. Government Initiatives: The Indian government has introduced various policies and incentives to promote EV adoption. These include subsidies, tax benefits, and incentives for manufacturing EVs and charging infrastructure. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is a prime example of such initiatives.
2. Automaker Investments: Leading automakers in India have made substantial investments in electric vehicle technology. Companies like Tata Motors, Mahindra & Mahindra, and Hyundai have introduced electric models, while others are planning to launch EVs in the near future.
According to Mr. Veer Singh, CEO, of Lord’s Automative Pvt. Ltd.
“The electric vehicle landscape in India is undergoing a profound transformation, and corporate entities are at the forefront of this green revolution. India is increasing their efficiency across the country by making electric vehicles more accessible to all. Since the two-wheeler and three-wheeler segments have the highest demand for such vehicles, manufacturers are introducing new models to capture the market share. With visionary commitments to achieve net-zero emissions by 2030, businesses are driving innovation, investing in sustainable technologies, and fostering a robust ecosystem.
“As the automotive industry navigates the challenges and opportunities of electrification, at Lord’s Automative, our dedication to a cleaner, greener future not only aligns with environmental goals but also paves the way for a resilient and prosperous economy. Together, we are shaping a future where sustainable mobility is not just a choice but a collective responsibility.’’
3. Rising Environmental Concerns: Growing concerns about air pollution and climate change have fueled the demand for cleaner transportation options. EVs are seen as a more environmentally friendly alternative to traditional internal combustion engine vehicles.
4. Technological Advancements: Advances in battery technology have led to improved EV range and charging infrastructure. Additionally, the decreasing cost of lithium-ion batteries is making EVs more affordable for consumers.
As of September 2021, estimates suggest that there were around 600,000 to 700,000 electric vehicles in India. It’s important to note that the number of EVs on the road is dynamic and has likely increased significantly since 2021 due to the continued growth in EV adoption.
A total of 13,92,265 Electric Vehicles (EVs) are being used on the roads of India as of 3rd August 2022 as per the information received from the Ministry of Road Transport and Highways. The details are as under:
Sl. No. Vehicle Category No. of electric vehicles
1 Two Wheeler 5,44,643
2. Three Wheeler 7,93,370
3. Four-wheelers and above 54,252
Grand Total 13,92,265
Read our blog on the top five players in EV financing –https://www.renewable-india.com/evs-and-batteries/ev-financing-environment/
Today, India is the fifth-largest global automotive market, which includes both ICE (Internal Combustion Engines) and electric vehicles and is predicted to grow to be the third-largest market by 2030. The sector has already attracted equity inflows from Foreign Direct Investment (FDI) of $ 32.84 Bn between April 2000 and March 2022 and the Indian EV market is expected to grow at a whopping CAGR of 90 percent in this decade to touch $150 billion by 2030.
(Source: https://www.businesstoday.in/opinion/columns/story/how-data-is-fueling-the-growth-for-electric-vehicles-in-india-384416-2023-06-06)
Mr. Rajesh Baheti, CEO – of the EV Division, Dhoot Transmission Pvt. Ltd. comments about the EV sector growth in India:
“The future of electric vehicles in India is driven by a growing customer preference, strong government Push, and the rapidly increasing demand for manufacturing various EV components. In response to the promising business opportunities in the EV industry, component manufacturers are aggressively increasing their efforts to produce EV parts locally, either by developing them from scratch or obtaining technology. This strategic move is expected to lead to significant cost optimizations, ultimately making EVs more affordable for consumers. With each EV on the road, we are not just driving cleaner, but also contributing to a more resilient and sustainable future for India.”
Several indicators point to its rapid expansion:
1. Increased Sales: Electric vehicle sales in India have steadily increased yearly. Despite challenges such as the high initial cost of EVs, consumers are showing a growing interest in electric mobility.
2. Infrastructure Development: Charging infrastructure is expanding across the country. Public and private investments are being made to establish charging stations in urban areas, along highways, and in residential complexes, making EV adoption more practical.
3. New Models: Automakers are introducing a wider range of electric vehicle models in different price segments, catering to diverse consumer preferences and budgets.
4. Rising Investment: Both domestic and international companies are investing in the EV ecosystem in India. This includes investments in manufacturing, battery production, and research and development.
5. Government Commitment: The Indian government continues to show commitment to promoting electric mobility through various policies, including setting ambitious targets for EV adoption.
In conclusion, the electric vehicle landscape in India is undergoing a transformative phase, with strong government support, increasing consumer interest, and significant investments from automakers and other stakeholders. While the exact number of EVs on Indian roads has likely grown significantly since 2021, it’s clear that the EV sector is booming, and India is on its way to becoming a significant player in the global electric vehicle market.
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