According to a report, the Electric Vehicle (EV) revolution is well underway, with EVs potentially accounting for 30–35% of India’s yearly vehicle sales by FY30. However, Internal Combustion Engine (ICE) vehicles will continue to rule the roads and coexist with EVs for many years to come.
With EV penetration increasing from less than 1% in 2019 to 7.4% in 2024, India is catching up to the rest of the world. “India has an opportunity to leapfrog, making EVs the first automobile for many, much as it skipped 3G for 4G, thanks to low vehicle ownership and distinctive growth drivers.” EVs may account for 30–35% of yearly sales by FY30, according to a research by SBI Capital Markets (SBICAPS).
The two main components that set an EV apart from an ICE are its batteries and electronic drive units, which account for half of its cost. This is the goal of India’s PLI for Advanced Chemistry Cell (ACC).
75 percent of OEMs’ battery needs are currently outsourced, but the report projects that backward integration—driven by partnerships and joint ventures rather than entirely organic efforts—will increase this to 50 percent by FY30. By 2030, 100 GWh of EV battery capacities should be achieved with capital expenditures of about Rs. 500–600 billion. By FY30, an additional Rs. 200 billion will be needed to develop public charging infrastructure to 90,000 chargers.
India’s EV boom is supported by a number of incentives, including lower road fees in many states, FAME and PM E-DRIVE subsidies, a favourable tax system that lowers running costs when using electricity as opposed to petroleum products, and a 5% GST rate compared to 28% for the majority of ICEs.
India’s EV incentive program is well-targeted; PM E-DRIVE increases assistance for charging infrastructure and boosts particular vehicle classes. Focusing on automobiles, where penetration is slow, is the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). Furthermore, India may easily embrace established solutions without having to start from scratch because global technological advancements have already paved the road, the paper explained.
Although EV adoption varies greatly by category, 2W and 3W are the most popular. The survey claims that private vehicles represent a distinct EV market where price is frequently outweighed by features like comfort, safety, performance, and design.
-Raja Aditya
