India's Surging EV Market: Growth and Sustainability
The value of the Indian EV market in 2023 was US$2bn, and the projection by 2025 is US$7.1bn, with the domestic market achieving 10 million annual sales by 2030.
Two-wheelers are driving this development, and according to Bain & Co, they will make up 40-50% of all EVs sold in India by 2030. This EV investment hasn't emerged out of nowhere—India has an existing investment foundation in sustainable technology.
India's investment in sustainable manufacturing
India's railway system, for example, is on track to achieve 100% electrification and become the world's largest green network. It is far ahead of the European Union, the UK, and the US, with the US at 1%, the UK at 38%, and the EU at 56%.
The Indian government has committed to ambitious decarbonisation targets for 2030. These include obtaining 500GW of renewable energy generation capacity, reducing carbon emissions in the energy sector by half and significantly boosting sales of EVs.
Leading EV vehicle manufacturers in India include Tata Motors, Mahindra & Mahindra, and BYD, which all sought to expand their market offerings. Tata Motors is the most dominant player, holding over two-thirds of the country's EV market.
While India lags behind its neighbours in EV development, with Prime Minister Narendra Modi scrapping subsidies meant to boost the market, the area bears many future promises.
EV vehicles are highly affordable, with 69% of cars sold in India in 2022 priced below US$15,000, making them a desirable option. Indians are motivated to be more sustainable, considering the profound impact the country faces from climate change.
In recent years, the country has faced merciless heat waves that have caused death and severe drought.
The World Weather Attribution found that climate change made it 45 times more likely extreme temperatures would occur in India, with the country now having a 10% chance of being hit by an extreme heatwave in late spring.
For India to achieve the EV development laid out by the government and driven by manufacturers, the country must continue developing its EV charging network.
Most public charging stations remain concentrated in major cities such as Mumbai and New Delhi, only supporting electric two and three-wheeler vehicles.
Increasing the EV charging network to rural regions of India will create new opportunities to champion the benefits of EV vehicles as technological innovation and advancement continues to permeate this manufacturing space.
