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The Indian EV market is expected to continue its growth spree during the forecast period. Several key factors, including government subsidies and policies, rising fossil fuel costs, decreasing costs of EV batteries, expansion of charging infrastructure, increase in domestic EV manufacturing, and growing consumer interest in electric mobility is driving the Indian electric vehicle market.
However, the limited range and high cost of EVs compared to conventional vehicles, and the infantile charging infrastructure market in the country is a major hindrance, as it limits the widespread adoption of EVs. The lack of standardization in charging technology also presents challenges to the growth of the market.
Furthermore, India's dependence on imports for key EV components makes it difficult to achieve economies of scale and bring down the cost of EVs on par with conventional vehicles. Consumer scepticism and lack of awareness about EVs are also factors that are hindering their adoption in the Indian market.
The electric vehicle (EV) market in India has shown impressive growth in vehicle sales past year (2023). The 1.53 million EVs sold in 2023 represent a significant 50% year-over-year increase over the million units sold in 2022. The two- and three-wheeler markets were responsible for the majority of the growth. As they are leading the sales of electric vehicles in India because they are cheaper than electric passenger cars or large commercial vehicles.
India made a commitment to reduce its carbon footprint by 33–55% below 2005 levels by 2030 at COP21. With road transportation accounting for 80% of consumption, India's transportation sector has become the third-largest oil consumer in the world as a result of the exponential rise in automotive adoption in the nation over the previous ten years. The shift to more environmentally friendly mobility solutions in the transportation sector can be extremely important for achieving the GHG emission target agreed upon under NDC (Nationally determined contributions).
The shift toward clean mobility is one of the federal government's top priorities, owing to which the government of India launched the scheme “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”, popularly known as FAME India scheme in April 2015 as part of its National Electric Mobility Mission Plan. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.
The federal government has recently made changes to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) II scheme to promote faster adoption of electric and hybrid vehicles by providing upfront incentives on purchases of electric vehicles.
In order to support public EV adoption, the government has also extended permissions for the installation of private charging stations in homes and workplaces in an effort to enhance the number of EV charging stations. As a result, anyone may now easily request the installation of a private charging point from the municipal or state nodal office.
Additionally, the government has given permission for the installation of EV charging stations in shopping centres, apartment buildings, office buildings, restaurants, hotels, and other public locations.
Several Indian state governments have adopted EV-specific policies with the goal of enticing investment and creating jobs in their particular states by offering both supply-side and demand-side incentives. To encourage EV manufacturers, incentives are frequently provided, such as capital interest subsidies, stamp duty reimbursements, tax exemptions, SGST reimbursement, and the supply of interest-free loans.
The electric vehicle industry in India is picking pace with 100% FDI possible, new manufacturing hubs, and an increased push to improve charging infrastructure. Federal subsidies and policies favoring deeper discounts for Indian-made electric two-wheelers as well as for localized ACC (advanced chemistry cell) battery storage market are other growth drivers for the Indian EV industry.
The two-wheeler segment dominates the Indian electric vehicles market. Electric two-wheelers represented 56% (857,165 units) of total India EV sales in 2023. Ola Electric retained its leading position in the segment with the highest sales of 166,372 units, followed by TVS Motor Company with 266,869 units. Other notable contributors included Ather Energy with 104,514 units and Bajaj Auto with 71,798 units. Other notable OEMs are also engaged in a competitive struggle to dominate the growing electric two-wheeler market in India.
The passenger EV segment is gradually growing. The electric car sales were 72,623 units in 2023, a 92.15% increase in sales relative to 2022. Accordingly, the market for electric four-wheelers in India represents a market share of close to 5% of overall EV market in India.
The business with the largest portfolio of EVs, Tata Motors, has sold 51,189 units and holds an 71% EV market share of India. With 9,263 vehicles, MG Motor India holds 12.8%, the second largest market share of electric vehicles in India.
With 582,119 retailed units in 2023, electric three-wheelers were the other significant growth driver for the commercial EV market and accounted for 38% of total EV sales in India.
Heavy and medium commercial electric vehicles are still in the pilot stages in India. The Indian government has plans to deploy electric buses for public commuting and has even started implementing the plan by introducing electric buses in a phased manner in some cities.
The rise in cost of gasoline, diesel, and compressed natural gas, as well as state subsidies and incentives provided under FAME II, are all factors that are expected to contribute to the domestic EV industry's sales growth in 2024. It also helps that consumers are becoming more aware of the importance of using environmentally friendly transportation. Certainly, another major driver is the long-term affordability of EV ownership costs.
*The recent developments list is not exhaustive
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The report provides India Electric vehicles Market size and demand forecast until 2029, including year-on-year (YoY) growth rates and CAGR.
The report examines the critical elements of electric vehicles industry supply chain, its structure, and participants
Using Porter's five forces framework, the report covers the assessment of the Electric vehicles industry's state of competition and profitability.
The report dissects the India electric vehicle market into various segments based on vehicle type (two-wheelers, passenger vehicles, and commercial vehicles). A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
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This report presents detailed profiles of Key companies in each segment of the Electric vehicles industry in India such as Hero electric, OLA electric, Ather Energy, Tata Motors Ltd, MG Motor India, Toyota Motor Corporation, etc. In general, each company profile includes - an overview of the company, relevant products and services, a financial overview, revenue growth, market share analysis and recent developments.
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1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Key Company Profiles
7. Competitive Landscape
8. Conclusions and Recommendations
List of Tables & Figures
Total Annual Electric Vehicle Sales in India (2013-2023)
Total Annual Two-Wheeler Electric Vehicle Sales in India (2013-2023), by no of Units
Total Annual Three-Wheeler Electric Vehicle Sales in India (2013-2023), by no of Units
Total Annual Four-Wheeler Electric Vehicle Sales in India (2013-2023), by no of Units
India Electric Vehicles Market Revenue (in USD million), 2022-2029
India Electric Vehicles Market Revenue (in USD million), by Vehicle Type, 2022-2029
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