Electric Vehicle Market in India

Market Overview:

The India electric vehicle market size reached US$ 1,327.8 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 102,610.8 Million by 2032, exhibiting a growth rate (CAGR) of 60.2% during 2024-2032. The increasing demand for fuel-efficient and high-performance automobiles, rising environmental awareness among the masses, and the growing number of EV charging stations in India represent some of the key factors driving the market.

Continuous Government Support Facilitating Market Growth

The EV market in India has been experiencing continuous growth. Inflating prices of petrol represents one of the major factors driving the sales of EVs. Moreover, the Government of India is promoting the use of EVs to promote sustainable development and reduce air pollution. It is also including EVs in public transportation to improve air quality and minimize the dependence on fossil fuels.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

What is Electric Vehicle?

An electric vehicle (EV) refers to an automobile that works by one or more electric motors instead of an internal-combustion engine, which generates power by burning gas and fuel. It is used to transport goods and passengers from one place to another. It runs on the energy stored in batteries and is charged by self-charging devices, such as turbochargers and regenerative braking systems, which can convert kinetic energy into electrical energy. It is cost effective in operations, makes less noise, and requires less maintenance as compared to gas powered vehicles. It generates zero tailpipe emissions that helps reduce air pollution and greenhouse gas (GHG) emissions.

COVID-19 Impact:

The COVID-19 pandemic outbreak has caused a severe impact on the automotive industry of India and imposed unprecedented challenges in the country. As a result, the sales were depressed in certain states of the country; however, recovery has been accelerated by pent-up demand, favorable policies put in place by government authorities, and the ability to purchase cars online. Moreover, with the upliftment of lockdown restrictions, several electrical mobility companies of India started focusing on improving their operational capacity to increase domestic production and meet the rising demand for EVs. In addition, the pandemic made people aware about the need to mitigate air pollution for positive health benefits. It also created a severe disturbance in the logistical and transportation industry and hampered the supply chains across the country, which resulted in shortages of components.

India Electric Vehicle (EV) Market Trends:

At present, inflating prices of petrol, increasing demand for fuel-efficient and high-performance vehicles, and the rising awareness about the economic and ecological benefits of adopting EVs are among the major factors bolstering the market growth in India. Moreover, rapid urbanization and inflating income levels are driving the sales of EVs amongst Indian consumers. In addition, the growing number of EV charging stations is catalyzing the demand for EVs in the country. This, coupled with the integration of the internet of things (IoT) in EV charging station systems to assist users in locating nearby charging stations about the availability of vacant spots and schedule convenient slots for fill-ups, is strengthening the growth of the market. Apart from this, due to the increasing environmental concerns, there is a rise in the inclination towards EVs in various end-use industries. This, along with the growing preference for hybrid vehicles (HVs), is influencing the market positively. Furthermore, the GoI is undertaking initiatives to launch numerous financial aids and subsidies on the purchase of EVs. Besides this, an increasing number of the ride sharing companies are adopting the utilization of EVs to offer noise-free and eco-friendly rides to their customers. Additionally, the advent of various electrification programs in the public transport sector for replacing fuel-based vehicles with safer and cleaner alternatives is creating a positive outlook for the market in the country.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India EV (electric vehicle) market report, along with forecasts at the country and regional level from 2024-2032. Our report has categorized the market based on vehicle type, price category and propulsion type.

Vehicle Type Insights:

• Passenger Vehicles
• Commercial Vehicles
• Others
   

The report has provided a detailed breakup and analysis of the India electric vehicle market based on the vehicle type. This includes passenger vehicles, commercial vehicles, and others. According to the report, passenger vehicles represented the largest segment due to the rising environmental measures undertaken, cost reduction in energy storage, and technology improvements. In addition, the GoI is planning to develop indigenous hydrogen fuel cells with hydrogen obtained from biomass to lower the upfront cost of the electric passenger vehicles.

Price Category Insights:

• Mid-Range
• High/Luxury Range
   

A detailed breakup and analysis of the India electric vehicle market based on the price category has also been provided in the report. This includes mid-range and high/luxury range. According to the report, mid-range accounted for the largest market share as the GoI is making EVs more accessible to a larger segment of the Indian population.

Propulsion Type Insights:

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-In Hybrid Electric Vehicle
   

A detailed breakup and analysis of the India electric vehicle market based on the propulsion type has also been provided in the report. This includes battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. According to the report, battery electric vehicles accounted for the largest market share in the country as they are fully electric vehicles with rechargeable batteries. These vehicles are also zero-emissions vehicles that do not generate any harmful tailpipe emissions and air pollution hazards caused by traditional gasoline powered vehicles.

Regional Insights:

• North India
• West and Central India
• South India
• East India
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East India. According to the report, South India was the largest market for electric vehicle. The integration of advanced technologies, such as in-built chargers in EVs, represents one of the major factors propelling the market growth in South India. Moreover, the rising preference for hybrid electric vehicles (HEVs) as they help to improve fuel economy, lower fuel costs, and reduce emissions, is favoring the growth of the market in the region. Apart from this, the growing investment in installing EV charging stations across South India is creating a positive outlook for the market.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape of the industry has also been examined, with some of the top India electric vehicle companies covered in the report including:

• Ampere Vehicles Private Limited (Greaves Cotton Limited)
• Ather Energy Pvt Ltd
• Atul Auto Limited
• Bajaj Auto Limited (Bajaj Group)
• Electrotherm (India) Ltd.
• Hero Electric (Hero Eco Group)
• Hyundai Motor India Limited (Hyundai Motor Company)
• JBM Auto Limited
• Mahindra Electric Mobility Limited (Mahindra & Mahindra Ltd)
• MG Motor India Pvt Ltd (SAIC Motor Corporation Limited)
• Okinawa Autotech Pvt Ltd
• Olectra Greentech Ltd.
• Piaggio Vehicles Pvt. Ltd. (PIAGGIO & C. SPA)
• Tata Motors Limited (Tata Group)
• TVS Motor Company (Sundaram - Clayton Limited)
• VE Commercial Vehicles Limited
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India electric vehicle (EV) market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India electric vehicle market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India electric vehicle industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.