Electric Vehicle Growth Projections for India
In order for India to meet its ambitious electric vehicle growth targets, it needs to attract more private investment. Last year, Tesla announced that it will build a factory in Karnataka in southwest India. The government has supported the EV industry in the past, but investment in India still pales in comparison to the global EV market. It’s therefore important for the country to develop a collaborative approach and promote more EV companies to drive the industry forward.
The automotive industry is an essential part of the economy of India, contributing over 7% to the GDP. The policy makers need to pay close attention to this industry because it will change the future of transport. The government has a long way to go to encourage mass adoption of EVs, and current subsidies are more about creating awareness about electric vehicles than driving sales. Positive regulatory intervention in India is expected to benefit OEMs and elevate efforts to make the country a global hub for EV manufacturing. As of now, 18 states have policies to encourage the manufacturing of electric vehicles.
In India, the government has enacted stringent emission norms and is working to increase the number of electrified vehicles. This is likely to encourage more consumers to switch to electric cars. Furthermore, automakers in India are aggressively incorporating electrified vehicles in their product lines, including the Chevrolet Volt and Tata Nano. In addition to government support, increased public awareness will also motivate more Indians to consider EVs.
According to the World Energy Council, India’s electric vehicle market will grow faster than any other country in the world. The country’s oil dependence is one of the major reasons for its low EV penetration. The country will need to add more charging infrastructure to meet its EV demand. In addition to building more charging stations, India will need to improve public transport and provide incentives to encourage more EV sales. If aggressive EV policies are put into place, India will be able to leverage its competitive advantage to drive rapid EV adoption.
The government will need to significantly scale its EV ambitions if it is to achieve its 2030 EV growth projections. India is heavily dependent on oil for passenger road transport, which will result in an increase in oil consumption. With such aggressive efforts, consumers in India will be encouraged to switch to electrified vehicles. A government that is aggressive in this area will have the best chance of meeting its ambitious targets. The Indian government will need to ensure that the fuel costs of EVs are kept to a minimum.
Electric vehicle adoption in India is expected to grow with the market for passenger and commercial vehicles. By 2030, commercial vehicles are expected to account for 70% of the EV market, while commercial vehicles are projected to account for the remaining 30%. The government should also diversify its revenue sources, since the EV market will cost it INR 1.1 lakh crore in taxes every year. It’s essential to have a balanced budget and implement policies that will benefit the electric vehicle industry.
The adoption of electric vehicles in India will grow along with the growth of passenger and commercial vehicles in the country. By 2030, it is expected that electric vehicles will account for about 70 percent of the overall vehicle market. This is a significant number for the country as its population increases by 1.4 million each year. Ultimately, these projections are a good indication of how the EV market in India will grow in the next few years.
While India is one of the fastest growing EV markets in the world, it still needs to implement ambitious policies to spur the adoption of electric vehicles. Zero-emissions vehicle mandates and fuel economy standards have shown their effectiveness in leading EV markets. Meanwhile, electric two- and three-wheelers are cost competitive in the Indian market today. There are several potential use-cases for the EV in India. So, India should invest in bold policies to promote the adoption of the electric vehicle.