Rise of Electric Vehicles: The Rapidly Growing EV Market in India and Its Potential

In 2023, the global electric vehicle (EV) market was valued at US$ 255.54 billion, with projections indicating it will reach approximately US$ 2,108.80 billion by 2033, reflecting a robust CAGR of 23.42% from 2024 to 2033.

India’s EV sector is undergoing rapid expansion, driven by government incentives, growing environmental concerns, and technological advancements. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme exemplifies India’s commitment to boosting EV adoption, aiming to transform the nation’s transportation sector toward sustainability and innovation.

According to Fortune Business Insights, the Indian EV market is expected to grow significantly, from US$ 3.21 billion in 2022 to an estimated US$ 113.99 billion by 2029, with a remarkable CAGR of 66.52%.?

In 2023, India witnessed a 49.25% surge in EV sales, reaching 1.52 million units. The nation has set ambitious targets to increase the share of EV sales to 30% for private cars, 70% for commercial vehicles, 40% for buses, and 80% for two-wheelers and three-wheelers by 2030, translating to an estimated 80 million EVs on Indian roads by 2030, according to the Confederation of Indian Industry (CII).

The Indian EV battery market is also on a growth trajectory, projected to rise from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028. The focus is primarily on building a reliable and extensive infrastructure while ensuring accessible and affordable home charging solutions.

In February 2024, the Indian Army announced a phased introduction of a limited number of EVs at 'Peace Stations' across the country, signaling a move toward embracing technological innovation, promoting green energy, and reducing dependence on fossil fuels.

Localking.in plays a pivotal role in India's rapidly expanding EV sector, offering EV companies access to high-quality component manufacturing, rapid prototyping, and scalable production capabilities. With a robust network of over 800+ specialized manufacturing partners, Localking.in delivers cost-effective and efficient solutions that accelerate EV production. By streamlining the supply chain and enhancing operational efficiency, Localking.in significantly contributes to the advancement of India’s green energy transition, positioning itself as an indispensable partner in the nation's journey toward a sustainable future.

A cost-efficient manufacturing base in India enables a reduction in costs by 10-25% compared to operations in Europe and Latin America.

? The country benefits from a vast pool of skilled and semi-skilled labor, supported by a robust educational system.

? The EV sector in India has significant growth potential, with plans to establish 1.32 million charging stations by 2030, necessitating 400,000 installations annually.

? India serves as a hub for over 700 electric vehicle startups, underscoring the dynamic nature of the industry.

India's electric vehicle (EV) sales reached 1,752,406 units in FY24, marking a robust year-on-year growth of 40.31% compared to the previous fiscal year.

? The automotive industry's shift towards electric vehicles is accelerating, driven by supportive government policies and a collective commitment to reducing CO2 emissions.

? Over the past two years, sales of electric two-wheelers (E2Ws) have skyrocketed, rising from approximately 143,000 units in 2021 to over 859,376 units in 2023. This remarkable growth is attributed to increasing demand for personal mobility, greater environmental awareness, and a significant 46% rise in gasoline prices between 2019 and 2022.

? The electric three-wheeler (e3W) market, excluding e-rickshaws, has seen substantial growth, particularly in the goods segment for last-mile delivery. Lower operating costs, 55% less than conventional autos, combined with the expansion of e-commerce, have facilitated this seamless transition.

? Sales of electric four-wheelers (e4Ws) surged in 2021, post-pandemic, driven by rising gasoline prices and increasing demand for personal transportation solutions.

? According to data from the Ministry of Road Transport and Highways, EV registrations accounted for 6.4% of total vehicle sales in India.

? In January 2024, total registrations of two-wheeler EVs climbed to 81,344 units, with Ola Electric leading the market at 32,000 units, followed by TVS Motor, which secured the second position with 15,181 units, reflecting a notable increase in EV registrations.

As of February 2024, India has 12,146 operational public EV charging stations, with Maharashtra leading, followed by Delhi and other states. A Confederation of Indian Industry (CII) report highlights the need to establish at least 1.32 million charging stations by 2030, requiring over 400,000 installations annually to support the growing EV market. Industry leaders are focused on enhancing EV charging infrastructure, with Hyundai Motor India expanding its ultra-fast charging network by adding 11 new stations in key cities and highways. Additionally, in December 2023, the Ministry of Heavy Industries, under the FAME India Scheme Phase-II, approved the allocation of 7,432 EV charging stations to three Oil Marketing Companies (OMCs).

In June 2024, BM Electric Vehicles Pvt. Ltd., a subsidiary of JBM Auto Ltd., partnered with MUON India Pvt. Ltd., a Macquarie Group company, to launch "Vertelo," an EV financing platform in India.

In April 2024, Uno Minda collaborated with China's Suzhou Inovance Automotive Co. for EV component manufacturing, while Okaya EV introduced its premium brand "Ferrato." Ola Electric, with 205 patents in EV technologies, announced the launch of "Raahi," an electric autorickshaw.

In January 2024, Tata Passenger Electric Mobility Ltd. (TPEM) unveiled the Punch.ev. Indian Oil Corporation inaugurated its first EV battery-swapping station in December 2023, in partnership with Sun Mobility.

Gujarat's EV market grew by 28% in 2023. Mahindra & Mahindra plans to produce 200,000 EVs annually at its Chakan plant by 2027-2029, with EVs comprising 30% of its volume by 2030.

EVs in the UK are 59% less likely to break down than ICE vehicles. In February 2024, the Indian Army proposed introducing EVs at Peace Stations. In October 2023, Union Minister R.K. Singh launched the EV-Ready India Dashboard, and MeitY unveiled a 2KW DC Portable Charger at IIT Madras.

Investment momentum in India's automotive sector is accelerating:

Between April 2000 and March 2024, the sector attracted approximately US$ 36.24 billion in cumulative FDI equity inflows.

The "Make in India" initiative is set to drive significant investments in the auto components sector.

Ola Electric is set to be the first Indian auto company to launch an IPO in two decades, with an anticipated size of Rs. 8,500 crore (US$ 1.01 billion).

Meeting India's electric vehicle (EV) goals will require around Rs. 12.5 lakh crore (US$ 180 billion) in vehicle production and charging infrastructure investment by 2030.

Vietnamese automaker VinFast has committed up to US$ 2 billion to establish an EV manufacturing facility in Tamil Nadu, marking its entry into India's automotive market.

Conclusion- The electric vehicle (EV) market is experiencing unprecedented growth, both globally and in India. With significant advancements in technology, supportive government policies, and increasing consumer demand for sustainable transportation, the industry is on track to achieve remarkable milestones. India's commitment to expanding EV infrastructure and promoting green energy is evident through ambitious targets and substantial investments. The country's automotive sector, supported by initiatives like the FAME scheme, is rapidly transitioning towards electrification, positioning India as a key player in the global EV landscape.

Localking.in is at the forefront of this transformation, providing crucial support to the EV sector through its comprehensive manufacturing services. By offering high-quality component manufacturing, rapid prototyping, and scalable production capabilities, Localking.in plays a vital role in accelerating the development and deployment of electric vehicles across India. With a vast network of specialized manufacturing partners, Localking.in ensures cost-effective and efficient solutions that are integral to the success of India's journey toward a sustainable and innovative future in electric mobility.