India EV Market: Current Analysis and Forecast (2024-2032)
Emphasis on Product (BEV and PHEV); Vehicle Type (Passenger Cars, Commercial Vehicles, and Two Wheelers); and Region/Country
India EV Market Size & Forecast
The India EV market was valued at approximately USD 4.1 Billion in 2023 and is expected to grow at a robust CAGR of around 40.34% during the forecast period (2024-2032) owing to the rising urbanization, affordability, increasing disposable income, and the shift towards electric mobility.
India EV Market Analysis
India’s EV industry is gaining momentum, aided by government initiatives and rising oil prices. However, the massive shift from internal combustion engine vehicles (ICE) to electric vehicles requires the expansion of infrastructure facilities, including charging stations, and vehicles capable of providing longer range (KM range on a single charge). Moreover, several initiatives taken by the government to support the manufacturing and adoption of electric vehicles in the country should help in achieving the target of 100% EV adoption by 2030 according to the India Brand Equity Foundation (IBEF). These initiatives include the Battery Swapping Policy. On April 22, 2022, NITI Aayog published a draft battery replacement policy effective until March 31, 2025. The policy will be implemented over a period of one to two years from the policy implementation date and will cover all large cities with a population of 4 Mn or more. The second phase will run for two to three years from the policy’s launch date and will cover all Union Territories (UTs) and major cities with a population of 500,000 or more.
India EV Market Trends
This section discusses the key market trends influencing the India EV segments as identified by our research experts.
BEV Segment Transforming Industry
Based on product, the market is classified into BEV and PHEV. The BEV segment catered to a dominating share of the EV market in India in 2020. The segment’s dominant market share can be attributed to consumers’ growing preference for EVs over internal combustion engine (ICE) cars and regulations on vehicle CO2 emissions. BEVs have the potential to drastically lower vehicle emissions as well as the long-term cost of ownership. Over the projected period, it is also anticipated that improvements in battery technology and falling lithium-ion battery prices will fuel demand for BEVs.
North India Dominated the Market in 2023
The growth of the EV market in North India is fueled by government incentives and policies that make EVs more affordable, rising urban pollution that drives the demand for cleaner transport, and increasing fuel prices that highlight the cost-effectiveness of electric vehicles. Additionally, improving infrastructure such as charging networks and battery-swapping stations, combined with rising disposable income, further supports the market’s expansion. These factors collectively contribute to the increasing adoption of EVs in North India, reflecting a shift towards more sustainable and economically efficient transportation solutions.
India EV Industry Overview
India EV is competitive, with several Indian and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are AUDI AG, BMW AG, Hyundai Motor Company, Jaguar Land Rover Automotive PLC, Mahindra & Mahindra Limited, The Mercedes-Benz Group AG, MG MOTOR UK Limited, Olectra Greentech Limited, Tata Motors Limited, and Toyota Motor Corporation.
India EV Market News
- For instance, in 2024, Electric scooter maker Ather Energy launched a new range of scooters focused at the family market called Rizta.
- For instance, Honda Global has confirmed plans to launch an electric motorcycle equivalent to 110-125 cc commuters in India next year. The announcement was a part of Honda Motor Co’s new motorcycle electrification strategy, which will see the manufacturer invest $3.4 billion by 2030 on new products and development. The two-wheeler giant also revised its global sales target from 3.5 million to 4 million electric motorcycles by 2030.
India EV Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
India EV can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the India EV Market Analysis (2022-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the India EV market were the three major steps undertaken to create and analyze the adoption of India EV in major regions. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the India EV market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the India EV market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of India EV, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report, such as product, vehicle type, and region. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India EV market. Further, we conducted factor analysis using dependent and independent variables such as product, vehicle type, and India EV regions. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the India EV market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above three steps, we arrived at the current market size, key players in the India EV market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the India EV across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the India EV in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India EV. Data was split into several segments and sub-segments after studying various parameters and trends in the product, vehicle type, and regions of the India EV market.
The main objective of the India EV Market Study
The current & future market trends of the India EV were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the India EV market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of product, vehicle type, and regions.
- Define and analyze the regulatory framework for the India EV
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the India EV market for the major regions.
- Major regions studied in the report include North India, West India, South India and East India
- Company profiles of the India EV market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is India EV Market current size and growth potential?
Q2: What are the driving factors for the growth of India EV Market?
Q3: Which segment has the largest share of the India EV by Product Type?
Q4: What are the emerging technologies and trends in India EV Market?
Q5: Which region will dominate the India EV Market?
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