The sales of electric vehicles in the Indian market are expected to expand at an annual compound rate of 49% by the end of 2030. The factors affecting petrol and diesel cars are many variables like increases in the prices of gas, advancements in new EV technology, and the arising of new players in the market, besides even the EV user is given subsidy from the state as well as central government and in addition anticipated implementation of emission standards.
The EV industry in India experienced one of the quickest recoveries from the pandemic-induced slowdown in 2020, the report observed, noting that the electric two-wheeler segment, accounted for 50 per cent of the total over 4.67 lakh EV sales in the domestic market followed by the low-speed e-three-wheelers in 2021.
However, other segments also showed notable increase over the course of the year, it stated.
The report said that with a Business as Usual (BAU) scenario, the Indian EV market would expand at a CAGR of 49 per cent between 2021 and 2030 and is predicted to reach annual sales of 17 million units by that time, with almost 15 million of those projected to be electric two-wheelers.
The report highlighted that the market is of 6.5 GWh, just like in 2021 and added that the EV segment is anticipated to grow quickly after 2024–2025, as the initial cost of these vehicles are predicted to be comparable to those of internal combustion engine-powered vehicles on the back of falling battery prices, advancements in EV technology, domestic production and economies of scale.
The FAME II incentives scheme, launched by the government to look into ways to make EVs cheaper and attractive to the end-users and has now been extended to 2024, has benefited more than 1.8 million automobiles, IESA said in the report.
