By 2030, Over 30% Of Vehicles Sold In India Will Be Electric

Mobility Outlook Bureau
17 Jun 2022
11:10 AM
1 Min Read

EV adoption for passenger vehicles is likely to be a mere 10% by the end of the period, amounting to a strikingly small 5% of total EV sales


More than 30% of the vehicles sold in India will run on electricity by 2030, shows a study by Arthur D Little. Titled – ‘Unlocking India’s electric mobility potential’ the study pointed out that the sector will cross sales of 10 million vehicles by 2030.

However, EV adoption for passenger vehicles is likely to be a mere 10% by the end of the period, amounting to a strikingly small 5% of total EV sales. India will require approximately 800 GWh of batteries by 2030 to attain 30% EV penetration. To meet this rising demand, India is accelerating plans to manufacture Li-ion cells within the country, anticipating $2.3 billion in Government subsidies and more than $7.5 billion in investment potential.

Barnik Chitran Maitra, Managing Partner & CEO, India & South Asia, Arthur D Little, said, “Despite the obstacles, India is one of the largest markets for EVs in Asia behind only China and, surprisingly, ahead of Japan. We can build on this position by acting to support product innovation, create reliable charging infrastructure, and provide subsidies to buyers and additional incentives to startups involved in battery R&D, among others. If India achieves its true EV potential of 50% electrification, every 10th EV sold globally could be manufactured in India, making India a global EV powerhouse.”

In terms of investment, given the Foreign Direct Investment (FDI) inflow of nearly $6 billion in 2021, India’s EV industry could attract further foreign investments of about $20 billion by 2030 to fuel the country’s economic growth and help achieve the required scale in this industry. In the recent past, government support and investments made by auto-incumbents in the EV ecosystem have also bolstered private equity (PE) and venture capitalists (VC) confidence in India’s EV space.

The study cites several factors for the low adoption of passenger EVs in India, including higher upfront costs compared to traditional vehicles, lack of models, dearth of charging infrastructure (charging stations, battery swapping centres, chargers, and the entire supporting ecosystem), low consumer confidence in the product-driven primarily by range anxiety, exacerbated by product safety mishaps. It recommends that the private sector and the government work together to remove the said barriers and help India lift its EV game.

Fabian Sempf, Principal & India Head of Automotive, India, Arthur D Little, said, “Electric mobility is the fast-approaching future of transport. We believe that India is well-positioned to make this transition. The solutions are evident, and the environment is conducive. With the needed impetus, India can achieve its aspiration of becoming one of the world’s leaders in e-mobility.” 

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