Electric mobility in India is growing by leaps and bounds. As per the data exhibited by EV volumes, both battery electric vehicles [BEVs] and Plug-in hybrid electric vehicles [PHEVs] at the beginning of the year 2022 reached a global share of around 8.3% from 4.2% in the year 2020-21. All this resulted in more than 7 million vehicles on the road. This can be considered a whopping increase of 110% when compared to the development in this sector in the previous years.
Over the past few years, EVs have grabbed global attention and have contributed a lot to bringing down the scale of emissions as well as the depletion of natural resources. The Indian EV market is also keeping pace with the world while evolving ultrafast. More than 0.32 million electric vehicles were sold in the year 2021. Based on the Paris Agreement, India is adopting electric mobility to aim at achieving targets or fulfilling the commitments:
- To reduce carbon emissions
- To bring betterment in the air quality, particularly in the urban areas, and
- To bring down the oil imports from the oil-producing countries.
Market Overview of Electric Mobility in India
The India Electric Vehicle Market has been estimated to register a CAGR of 23.76%
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Largest Segment by Fuel Type – HEV
Some of the top reasons that affect and influence the rise and increase of BEV include subsidies granted by the states and the adoption of BEV by Indian private automobile owners.
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Fastest-growing Segment by Fuel Type – HEV
What is attracting consumers across the country to go for electric vehicles includes the awareness of e-mobility, rebates and incentives, and flexible government norms. And, this approach is making BEV the fastest-growing segment in India’s EVs market.
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Largest Segment by Vehicle Type – Commercial Vehicles
As for the sales graph of electrical vehicles in India, the passenger vehicle segment has acquired the lion’s share. The primary reason is that the demand for passenger vehicles across the country is increasing by leaps by leaps and bounds, and only very few choices are available.
A look at the vehicle types and fuel types
Commercial Vehicles
- Light Commercial Pick-up Trucks
- Light Commercial Vans
- Medium-duty Commercial Trucks
- Heavy-duty Commercial Trucks, and
Passenger Vehicles
- Hatchback
- Multi-purpose Vehicle
- Sedan, and
- Sports Utility Vehicle.
Fuel Type
- BEV
- FCEV
- HEV
The Indian automobile industry is currently the 5th largest one in the world, and as per the industry forecast, it is going to be the 3rd largest one by the end of the year 2030. According to the India Energy Storage Alliance (IESA), the electrical vehicle (EV) industry in India is expected to grow at a CAGR of more than 36%. With the ever-increasing population of the country, the demand for vehicles is increasing at a rapid pace. In such a scenario, the dependence on conventional energy resources cannot be considered to be sustainable. India has always been importing around 80% of its crude oil requirements from the oil-producing countries.
The NITI Aayog of the country aims to achieve the following to encourage electric mobility in India:
- 70% EV sales penetration for commercial cars
- 30% EV sales penetration for private cars
- 40% for buses, and
- 80% for two and three-wheelers by the end of the year 2030.
These efforts are being made to achieve the goal of zero carbon emissions by the end of 2070. As per the data released by the Ministry of Heavy Industries, around 0.52 million electric vehicles were registered over the past few years. During the years 2021-2022, EVs in India recorded phenomenal growth being supported by the effective and efficient implementation of different types of government rebates, norms, and policies.
State-wise data of the EV sales at a glance
- The state of Uttar Pradesh held the highest share in the three-wheeler segment EV sales
- Total sales of EVs across all segments reach the mark of more than 66,704
- The state of Karnataka had numbers like 33,302
- Tamil Nadu data is 30,036 units.
The Ecosystem for Electric Mobility in India at a Glance
Market
- Consumer perceptions
- Raw Materials for batteries
- Testing and certification
- Vehicle Servicing
- The market for electricity storage
- High capital cost and Financing
- Electricity quality
Technical
- Driving range of EVs
- Charging time
- Efficiencies of batteries
Safety
- Environmental Impacts
Policy
- Taxation of vehicles and components
- Subsidies on fossil fuels
- Electricity tariff policies
Infrastructure
- Battery recycling
- Dedicated lanes for E – 2 Wheelers
- Charging infrastructure
- Smart Grids.
Key growth drivers of electric mobility in India
- 13 out of 20 most populated cities are in India. As per research by UNEP, DTU, and IIM- A, the ‘highest’ EV penetration will cause around a 50% drop in PM 2.5 by the end of 2035.
- As per the Center for Science and Environment, the Master Plans made by the government of India for most of the cities in the country target around 80% public transport ridership by the end of 2030.
- The government of India is aiming at achieving the goal of generating 100 GW of solar energy by the end of 2023 which will enable electrical vehicles to bring betterment in the reliability and overall usage of renewable energy by acting as storage.
Read More: Careers in e-mobility: Overview, Possibilities, Scope, and Prerequisites
Large-scale penetration of electrical vehicles in India will call for both better-charging infrastructures as well as demand-side incentives. One of the most important factors is the integrated planning for a better and well-managed grid management. It is also necessary to understand that unplanned EV penetration across vehicle segments might result in the increased load on the power grid which is already stressed enough to take on the challenge.
The Bottom Line of the Electric Mobility in India
The government of India has been making untiring efforts to make the country a global leader in the EV space. It aims at making India capable of having 100% electric vehicles by the end of the year 2030. While pushing for a rapid rise in the adoption of EVs in each and every state of the country, the government has introduced a large number of rebates, incentives, and subsidies for both consumers as well as electrical vehicle manufacturers in the country.
It has also made the proper and systematic electrification of all public transport vehicles by the end of the year 2030 with an intermediate target of 40% by 2025. The government is also proactively taking important steps to develop charging infrastructure alongside all the major highways and important roads. The responsible authorities are targeting to establish one charging station every 20 kilometers. This has made the overall environment for the surge of EVS in the country really very encouraging and stimulating.
