India’s electric vehicle (EV) market is on the cusp of a major transformation, with a projected growth to USD 238 billion by 2030. According to the latest “Electrify30: The Future of Mobility” report by Praxis Global Alliance, the nation’s EV ecosystem is expected to expand at a remarkable compound annual growth rate (CAGR) of 38% over the next decade. This growth is being fueled by a combination of proactive government policies, increased consumer awareness, and significant advancements in technology.
One of the primary drivers of this expansion is the Indian government’s unwavering commitment to promoting electric mobility through various initiatives such as the FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) scheme and the Production Linked Incentive (PLI) for advanced battery manufacturing. These programs aim to reduce the country’s dependence on fossil fuels, cut greenhouse gas emissions, and position India as a global leader in sustainable transportation.
As of 2024, the penetration of electric vehicles in India remains relatively low, with electric two-wheelers (E2Ws) at 8% and electric four-wheelers (E4Ws) at 3%. However, the report forecasts a significant shift by 2030, with E2W penetration expected to reach 40% and E4Ws at 18%. This surge in adoption is indicative of a broader trend towards cleaner, more efficient modes of transport across the country.
The report also highlights the importance of infrastructure development in achieving these targets. The expansion of EV charging stations and battery-swapping networks will be crucial in supporting the growing number of electric vehicles on the road. With continuous government support and decreasing costs, the transition from internal combustion engine (ICE) vehicles to EVs is not just feasible but inevitable.