India Electric Vehicle Market Report and Forecast 2024-2032

According to this report, the India electric vehicle market size reached a value of USD 348.20 million in 2023. Aided by environmental concerns, government incentives, and technological advancements, the market is projected to further grow at a CAGR of 60.60% between 2024 and 2032 to reach a value of USD 24,747.69 million by 2032.

As per the India electric vehicle market analysis, with India facing escalating environmental challenges such as air pollution, climate change, and resource depletion, there is a pressing need to transition towards cleaner and more sustainable modes of transportation. Electric vehicles offer zero tailpipe emissions, reducing air pollution and greenhouse gas emissions, and mitigating the adverse impacts of vehicular pollution on public health and the environment.

As per the India electric vehicle market outlook, the Government of India, cognizant of the potential of electric vehicles to address energy security, environmental sustainability, and economic development, has introduced various policy measures and incentives to promote electric mobility. Schemes such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India scheme, subsidies on electric vehicle purchase, and tax incentives for electric vehicle manufacturers incentivise adoption and spur market growth.

Rapid advancements in battery technology, electric drivetrains, and charging infrastructure enhance the performance, range, and affordability of electric vehicles, making them increasingly attractive to consumers which fuels the India electric vehicle market growth. Innovations such as lithium-ion batteries, regenerative braking systems, and fast-charging stations address key challenges such as range anxiety, charging time, and upfront costs, driving widespread adoption of electric vehicles across India.

As the cost of battery production declines and economies of scale are realised in electric vehicle manufacturing, the total cost of ownership of electric vehicles becomes increasingly competitive with conventional internal combustion engine vehicles which can propel the India electric vehicle market expansion. Lower operating costs, reduced maintenance expenses, and government subsidies offset the initial purchase price premium of electric vehicles, making them a cost-effective choice for consumers and fleet operators.

In congested urban areas characterized by traffic congestion, air pollution, and limited parking space, electric vehicles offer a sustainable solution to address mobility challenges. Electric two-wheelers, three-wheelers, and shared mobility services such as electric rickshaws, e-scooters, and e-bikes provide affordable, efficient, and environmentally friendly transportation options, easing congestion, reducing travel times, and enhancing urban liveability.

The deployment of electric vehicle charging infrastructure in the electric vehicle market in India, including public charging stations, fast-charging networks, and home charging solutions, accelerates to support of the growing electric vehicle fleet across India. Public-private partnerships, investments in smart grid technologies, and interoperable charging standards facilitate widespread adoption and convenience for electric vehicle owners.

Battery swapping stations and energy storage solutions offer alternative charging options for electric vehicles, addressing challenges related to charging time, infrastructure availability, and range anxiety which can boost India electric vehicle market share. Battery swapping enables rapid battery exchange at dedicated stations, extending electric vehicle range and enhancing flexibility for long-distance travel and commercial applications.

Market Segmentation

The market can be divided based on platform, propulsion type, vehicle type, and region.

Market Breakup by Platform

• Two Wheeler
• Three Wheeler
• Four Wheeler

Market Breakup by Propulsion Type

• Battery Electric Vehicle
• Hybrid Electric Vehicle

Market Breakup by Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market Breakup by Region

• North India
• East India
• West India
• South India

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the India electric vehicle market. Some of the major players explored in the report are as follows:

• Tata Motors Limited
• BMW AG
• Mahindra & Mahindra Limited
• MG Motor India Pvt. Ltd.
• ANI Technologies Pvt Ltd.
• Hyundai Motor India
• Piaggio Vehicles Private Limited
• Kinetic Green Energy & Power Solutions Ltd.
• TVS Motor Company
• Bajaj Auto Ltd
• Others