The Indian Electric Vehicle (EV) market is expected to grow in the range of 35-40% CAGR till year 2027, says a study by Niveshaay, that manages the Green Energy smallcase (A portfolio of stocks, which will get benefit from the Renewable Energy sector development). Currently, the Indian EV market is concentrated on the two and three-wheeler EV segment, which accounts for about 80% of its vehicle market.
Mr. Arvind Kothari, smallcase Manager & Founder of Niveshaay, says, “The Indian government is aiming to boost local manufacturing and reduce import dependency. It has introduced Production Linked Incentive (PLI) schemes and reduced customs duties on critical minerals to boost local manufacturing. The balanced approach to policy support and market development is facilitating India to emerge as a remarkable contender in the global EV landscape, despite challenges like limited charging infrastructure.”
Expected growth in the sector by 2025 & 2030 respectively
The study further projects, sale of around 3-4 million EVs in India annually by the year 2025. EVs are expected to penetrate the market with approximately 10-15% of new vehicle sales in India (including two-wheelers, three-wheelers, and passenger vehicles), driven by government incentives, rising fuel prices, and increased consumer awareness.
By the year 2030, annual EV sales are projected to surpass 10 million units, with substantial growth in the deployment of electric buses, commercial vehicles, and private cars. EVs could represent 30-40% of new vehicle sales in the market. With more than two million public charging stations projected nationwide, the study predicts a strong EV Infrastructure.