India Electric Vehicle Market - Forecasts from 2024 to 2029

India Electric Vehicle Market - Forecasts from 2024 to 2029

India’s electric vehicle market is anticipated to expand at a CAGR of 28.52% to attain US$18.319 billion by 2029 from US$5.225 billion in 2024.

An electric vehicle (EV) is an electric vehicle that is operated using energy drawn from batteries installed in it. These vehicles use electricity from an external source to charge the battery, which can be further used to operate the vehicle. These vehicles do not include ICE (internal combustion engines), which use petrol and diesel as fuel.

The demand for electric vehicles in India has witnessed massive growth over the past few years, with the introduction of new technologies and government policies and subsidies further boosting the market. The International Energy Agency, in its report, stated that in the first quarter of 2024, the sales of EVs increased by about 50% compared to the previous quarter.

Similarly, the Government of India introduced multiple new policies and incentives, which is further estimated to boost electric vehicle sales in the nation. For instance, in March 2024, the Ministry of Commerce & Industry of the Government of India approved the E-Vehicle policy aimed at promoting the nation as a manufacturing hub for EVs.

India Electric Vehicle Market Drivers:

The increasing demand for 2-wheel EVs in the nation.

A key factor driving the Indian electric vehicle market is the increasing demand for 2-wheeler and 3-wheeler EVs in the nation. India is among the biggest consumers of commuter 2-wheelers and commercial 3-wheelers worldwide, with about 17.974 million 2-wheelers and 691.749 thousand 3-wheelers sold in the 2023-24 financial year, as stated by the Society of Indian Automobile manufacturer. The organization further stated that the demand for 2-wheelers and 3-wheelers in the nation grew significantly from 2022, when about 15.862 million 2-wheelers and 488.768 thousand 3-wheelers were sold.

The EVreporter stated that in 2022, 681,991 electric 2-wheelers were sold nationwide, which grew to 925,551 units in 2023. In 2022, Ola Electrics held the biggest share of about 18%, followed by 16% by Hero Electric and 16% by Okinawa Autotech. In 2023, Ola Electric held a massive share of about 31%, followed by 20% by TVS Motors and 13% by Ather Energy in the electric 2-wheelers segment.

The electric 3-wheeler Cargo (L5) market in the nation has also grown by about 80%, according to the EVreporter. The total sales in the segment in 2022 were reported at about 14,881, in which Piaggio Vehicles occupied 24% of the market share, followed by Mahindra & Mahindra at 22% and Omega Seiki at 19%. The sales of electric vehicles increased to 26,833, with Mahindra & Mahindra gaining the biggest market share in the segment, occupying about 29%, followed by Piaggio Vehicles and Omega Seiki at 17% and 13%, respectively.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

India's Electric Vehicle Market is segmented and analyzed as:

By Type

Two-Wheelers
Three-Wheelers
Four-Wheelers
Heavy Vehicles

By End-User

Public
Private

By Battery Type

Lead Battery
Lithium Ion Battery
Others

By Geography

North India
South India
East India
West India
Central India