Published: January 2023 | Report Code: 11188 | Available Format: PDF | Pages: 240
The Indian electric car market sales volume is expected to reach 37,792 unit in 2022, and it is expected to reach 376,000 unit in 2030, with a growth rate of 33.3% during 2022–2030. The major factors behind this exponential growth are the rising foreign direct investment (FDI), construction of manufacturing hubs, and amplifying push to improve the charging infrastructure. Further, the electric vehicle (EV) industry is slowly gathering momentum with the support of the government and surge in crude oil prices, as people are looking for ways to lessen their monthly bills.
The Paris Agreement, which aims to curb carbon emissions, improve the quality of the air in cities, and decrease oil imports, is the foundation for India's EV strategy. With the growing population and demand for vehicles, conventional energy resources are not viable, as India imports the majority of its crude oil. Thus, the government is focusing on increasing the number of EVs, including cars, in line with the goal to accomplish net-zero carbon emissions by 2070.
Further, in November 2021, at the Conference of the Parties COP26 Summit in Glasgow, India launched the website e-AMRIT, which will serve as a one-stop resource for all information on electric cars. It discusses important points related to EVs and their purchase, including the locations of charging stations and EV financing choices, as well as offering the details of investment opportunities, regulations, and manufacturers.
In addition to the more-well-known advantages, such as lower carbon dioxide emissions and air and noise pollution, EVs also offer significant efficiency gains and have the potential to become a storage source for renewable energy. Vehicle owners and first-time customers are looking for less-expensive solutions, and cars meet the bill, especially when considering the long-term maintenance costs associated with them.
OEMs are dedicatedly working on imparting training to their sales and aftersales teams on EVs. Meanwhile, the entire ecosystem of manufacturers, central and state governments, dealers, and investors is concentrating on ensuring that everyone in the supply chain has significant know-how about handling and maintaining these automobiles. Owning an electric car requires a behavioral change with respect to the maintenance of the vehicle and battery. Thus, manufacturers are also focusing on making it a core principle to educate consumers about the usage and maintenance of their battery models.
The BEV category accounted for the largest share, of an estimated 88%, in the Indian electric car market in 2022, and it is projected to maintain its dominance in the coming years. This is primarily imputable to the snowballing preference of consumers for EVs over ICE vehicles and limitations on vehicular CO2 emissions. In addition to this, the higher subsidies offered by the government on the purchase of BEVs as compared to PHEVs and HEVs, coupled with the dwindling battery price and availability of many BEV models, , drive the sales expansion.
The sport utility vehicles (SUVs) category is expected to record the highest CAGR, of around 36%, during the forecast period, owing to the rise in the disposable income of the citizens and the increase in the demand for premium cars across the country. Therefore, several manufacturers are focusing on launching SUVs to expand their sales and achieve a huge customer base. For instance, in July 2022, Mahindra & Mahindra Ltd. and British International Investment agreed to each invest up to $250 million in a new EV manufacturing facility, which is to have a valuation of $9.1 billion, to broaden the sales of its electric SUVs.
Additionally, many international companies are introducing new vehicles in India, with the objective of diversifying their geographical presence and improving their business performance. For instance, in October 2022, BYD India Private Limited launched Atto 3 electric SUV, which has been designed to take on the likes of Tesla, by offering better driving comfort. Similarly, in July 2022, Sweden’s AB Volvo debuted its electric compact, SUV XC40 Recharge, in the country.
The lithium–iron phosphate (LFP) category accounted for the largest share in the market in 2022, and it is projected to retain its position in the long run. This is primarily because of the longer life and lower costs of LFP batteries. Moreover, their supply chain is more stable compared to that of others, and they are also environmentally safe. Further, they have a low discharge rate, a higher number of charge cycles, and less heating, which have a positive impact on their usage.
Models with a battery capacity of more than 201 Ah held the larger share in the Indian electric car market, in 2022. Moreover, this category is expected to corner the higher CAGR over the forecast period, attributed to the consumer preference for cars with a longer range.
The personal users category dominated the market in the historical years, and it is expected to continue having the largest share in the coming years, owing to the rising disposable income of the citizens and increasing affordability of these cars. In December 2021, the government formed a new section, 80EEB loan tax relief, which exempts EV owners from paying taxes, to promote the use of green automobiles.
Report Attribute | Details |
Historical Years |
2017-2022 |
Forecast Years |
2023-2030 |
Market Size in 2022 |
37,792 Units |
Revenue Forecast in 2030 |
376,000 Units |
Growth Rate |
33.3% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Technology; By Product; By Battery; By Battery Capacity; By End User, By State |
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Government schemes and subsidies are playing a major role in the production and sales growth of EVs. In April 2015, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) in India scheme was launched for promoting the adoption of hybrid and EVs in the country. Then, in April 2019, the FAME-II scheme was launched with a budget outlay of $1.3 billion (INR 10,000 crore), to support 55,000 e-passenger vehicles and charging stations.
The government has extended the scheme till 2024, as announced in Union Budget 2022–23. With a superior emphasis on offering affordable and environment-friendly public transportation to the masses, the scheme is applicable mainly to vehicles registered for commercial purposes or used for public transport. Owing to the additional incentives at the state level, Karnataka tops the chart when it comes to the number of beneficiaries under the scheme, followed by Tamil Nadu, Maharashtra, Rajasthan, and Delhi.
Furthermore, in May 2021, the government launched the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage Manufacturing, to incentivize the domestic production of batteries and diminish the dependence on imports. This will further support the EV industry with the vital infrastructure and significantly cause a plunge in the cost of electric cars.
Uttar Pradesh led the market, in 2022 due to being home to the largest customer base and a large number of suppliers across the EV value chain. In October 2022, the state cabinet approved the new EV policy, called Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022, to benefit not only personal vehicles but also commercial vehicles. The government will provide a complete waiver of registration fees and road tax for vehicles bought and registered in the state.
Maharashtra is expected to witness a significant growth rate over the forecast period. In July 2021, with the goal to augment the adoption of EVs, the state government rolled out a comprehensive policy, under which the maximum incentive was capped at $2,029.1 (INR 1.50 lakh), and buyers were also made eligible for early-bird incentives.
Pune (especially Pimpri–Chinchwad), Mumbai, and Nagpur have recorded the highest EV sales in the state during the past few months. Among the new registrations are cars, particularly SUVs with a range of 300 km on a single (full) charge, which is adequate for both intra-city and intercity travel.
Similarly, in Mumbai, over a hundred housing societies have deployed EV charging stations with a subsidized price of $0.07 (INR 5.50) per unit, which is quite lower than the standard residential power prices. Further, 1,500 additional EV charging stations are being planned for the city, and the government has sought to ensure that 10% of the new automobile registrations are EVs by 2025.
This report offers deep insights into the market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.
Based on Technology
Based on Product
Based on Battery
Based on Battery Capacity
Based on End-User
Geographical Analysis
The electric car market of India will have a CAGR of 33.3% during 2022–2030.
The India electric car industry sales volume is expected to reach 37,792 unit in 2022.
BEVs are preferred in the electric car market of India.
Government support for EV buyers and OEMs drives the India electric car industry.
Uttar Pradesh is the largest electric car market in India, with Maharashtra set to witness significant growth.
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