Despite being in the early stage, the rapidly growing EV sales have led to rising investments in EV production in India, which is expected to reach one million units over the next five years.
The Economic Times reported that according to "Charged for Success: India's EV Landscape," co-released by PHD Chamber of Commerce and Industry and Avalon Consultancy, EV production in India is likely to reach 9.7 million units by fiscal 2028 (April 2027 to March 2028), with EV-specific component market anticipated to grow from US$1.25 billion in fiscal 2023 to US$13 billion in fiscal 2028. Meanwhile, rising EV demands in India are expected to lead to a growing demand for battery packs, which may go from 29.5 GWh in fiscal 2026 to 152.3 GWh in fiscal 2030.
India's developing EV industry grows with rising EV sales. Since 2021, led by electric two-wheelers (E2Ws), EV sales in India have grown by more than 100% annually. India saw more than 200% growth in EV sales in 2022, and EV sales for the first eight months of 2023 surpassed that of the previous year.
Besides a growing market, India's policies, such as FAME II and the Production Linked Incentive schemes for advanced chemistry batteries and automobiles and their components, have come together to reach an expected 30% EV penetration rate in India by 2030. India also hopes EVs will constitute 80% of the two- and three-wheeler sales in coming years.
Vikram Pawah, India president at BMW Group, told PTI that the company expected EVs to account for 25% of its sales in India by 2025, and the company may localize EV production as the volumes grow. Hyundai Motor Group, which plans to launch five EV models in India by 2032, will make small EVs in India starting from 2025, reports Reuters. Foxconn also plans to set up EV and EV battery manufacturing facilities in India.
Source: Vahan Dashboard, September 2023
