India Aims To Achieve 30% Share of EVs in New Sales by 2030: Report India's EV market saw robust growth in 2023, with sales surpassing 1.5 million units; a 49 per cent increase compared to 2022. Notably, 95 per cent of these sales came from e2Ws and e3Ws, which play a pivotal role in India's transition to electric mobility.
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Electric vehicles (EVs) are at the forefront of global efforts to decarbonize road transport and achieve net-zero emissions. With zero tailpipe emissions and rapidly advancing battery technology, EVs present a transformative opportunity to replace internal combustion engine (ICE) vehicles and redefine the automotive industry as a cornerstone of sustainable energy. However, the success of this transition hinges on multiple factors to address key adoption challenges.
In 2023, global EV adoption reached nearly 14 million new electric cars registered—accounting for approximately 18 per cent of total car sales worldwide, as per a report by IISD titled, Budgeting for Net Zero. This brought the total number of EVs on roads to 40 million. Electric two-wheelers (e2Ws) and three-wheelers (e3Ws) also demonstrated strong growth, capturing a 13 per cent share of sales globally. Countries like China, India, and members of the Association of Southeast Asian Nations (ASEAN) are leading this charge, with electrified 2W/3W sales reaching over 30 per cent, 8 per cent, and 3 per cent, respectively.
India's EV market
India's EV market saw robust growth in 2023, with sales surpassing 1.5 million units; a 49 per cent increase compared to 2022. Notably, 95 per cent of these sales came from e2Ws and e3Ws, which play a pivotal role in India's transition to electric mobility. However, despite these gains, EVs represented only 6.4 per cent of all vehicle sales in 2023, reflecting a need to address persistent barriers such as high upfront costs and total cost of ownership (TCO) compared to ICE vehicles.
Policies and government initiatives
The Indian government has implemented a range of policies and incentives to drive EV adoption. Central to these efforts is the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme, which has subsidized over 1.6 million EVs and allocated funds for charging infrastructure development. The recently launched PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme and PM-eBus Sewa Scheme aim to further expand electric mobility, including deploying 10,000 electric buses through public–private partnerships.
Union Minister of Road Transport and Highways of India, Nitin Gadkari, speaking at the 8th Catalyst Conference on Sustainability of E-Vehicle Industry, emphasized the transformative potential of India's EV market. "The Indian electric vehicles market potential is of INR 20 lakh crore by 2030, creating five crore jobs across the entire EV ecosystem," he said.
India's EV30@30 pledge targets a 30 per cent share of EVs in new vehicle sales by 2030. Segment-specific goals include 70 per cent of commercial cars, 40 per cent of buses, and 80 per cent of e2Ws and e3Ws. To support this vision, the government has committed to establishing 46,397 public charging stations by 2030, a crucial step toward building the necessary infrastructure.
Bridging the gap and driving toward sustainability
Despite these initiatives, achieving India's EV goals will require overcoming several challenges. The high purchase cost of EVs remains a significant hurdle for many consumers. Additionally, the availability and accessibility of charging infrastructure must expand to instill confidence in potential buyers.
Rohit Chaturvedi, partner and transport and logistics sector leader at Forvis Mazars, underscores the importance of strategic planning. He said in the report, "India has an opportunity to learn from global leaders and develop a strategy that accelerates EV adoption while addressing local challenges."
A focus on localized solutions such as incentivizing domestic battery production, enhancing energy storage technology, and fostering innovation in EV design will be essential.
India's EV segment is projected to witness exponential growth in the coming years. By 2030, the country could achieve a stock of 8 crore EVs, with significant penetration across private and commercial vehicles. Automakers like Tata Motors are already investing heavily in EV technology and infrastructure. Srivatsa notes that by 2030, Tata aims to achieve 30 per cent EV penetration in its passenger vehicle portfolio, reflecting a broader industry commitment to sustainability.
The journey toward electrification is a defining moment for India's automotive industry. With concerted efforts from all stakeholders, the nation can accelerate its transition to sustainable mobility while reaping significant economic and environmental benefits. The road ahead will require persistence and collaboration, but the promise of a cleaner and greener future makes the effort worthwhile. With these efforts, India is poised to emerge as a global leader in electric mobility
