India's Electric Vehicle (EV) Market Witnesses an Astonishing Surge of 155.4% in 2022, Exceeding USD 46,877.76 Million

The electric vehicle (EV) industry in India is currently in its early stages of development. Although it accounts for less than 1% of total vehicle sales, its potential for growth in the coming years is substantial, with projections indicating a potential market share of over 5%. Presently, there are more than 500,000 electric two-wheelers and a few thousand electric cars on Indian roads.

In 2021, EVs experienced significant growth, primarily due to the implementation of favorable laws and schemes by the government. The year 2022 witnessed an impressive 210% increase in EV sales in India, surpassing the milestone of one million units sold for the first time. This growth can largely be attributed to the two- and three-wheeler categories, often considered the "low-hanging fruits" of the EV industry. These segments, being more affordable than electric passenger vehicles or commercial vehicles, contribute the most to overall EV sales.

The future expansion of the EV market will be driven by multiple factors, including the growing environmental consciousness among buyers, government incentives, and a wider selection of EV products available in the market. These factors will play a crucial role in fostering the continued growth of the EV industry in India.

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► Consumer Perception and Awareness
In India, consumer perception of purchasing electric vehicles has grown in recent years. Electric two-wheelers (EV2W) in particular are driving EV adoption in India, aided by the pandemic's increased need for personal transportation. Vehicle Cost is the most expensive component of an EV's Total Cost of Ownership (TCO), whereas Energy is the most expensive component of an ICE vehicle's TCO. The cost-conscious Indian customer is aware of the EV's lower TCO due to updated battery technology and the ICE's ever-increasing TCO due to continually escalating gasoline prices.

► Bullish Investor Sentiment
Rapid EV adoption across all sectors is a way to the green frontier. Private equity firms and venture capital funds are investing heavily in the Indian electric mobility area, buoyed by the industry's possibilities and the mandate to invest in clean technology. Globally, the EV market has emerged as one of the fastest expanding industries, garnering cash from a diverse collection of investors.

As of March 2023, there are approximately 17 million EVs currently operating on Indian roads and this number is expected to rise significantly by 2030, reaching an estimated increase of 45-50 million EVs.
10 million annual sales by 2030, demonstrating a robust Compound Annual Growth Rate(CAGR) of 49% from 2022 to 2030

► Key Developments
■ Under FAME-I and FAME-ll, the Department of Heavy Industries approved 3,397 charging stations. FAME-I developed 427 charging stations in various Indian cities. This figure also includes charging stations installed on well-known highways that connect large cities. FAME-11 has sanctioned 2,877 stations with the goal of providing PAN India coverage. Under FAME-II, the top five states (Maharashtra, Tamil Nadu, Gujarat, Andra Pradesh, and Madhya Pradesh) would receive 48% of total charging stations.

■ The Union Budget 2023 has removed the custom duties, which earlier attracted custom duty of 5% to 20%, on the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries which are used in Electric Vehicles (EVs). The custom duties to remain nil up to March 31, 2024.

► Key Findings
■ Increasing Sales of OEM's: Ola Electric, Hero Electric, and Okinawa are significant OEMs with 2022 unit sales of above 1 lakh. Ola Electric forecasted its largest sales and yearly growth rate ever for 2022.
■ Increasing Number of Electric Vehicles Penetration in Uttar Pradesh: With 4,14,978, Uttar Pradesh (U.P.) has the most electric vehicles (EVs) in the nation, followed by Delhi and Maharashtra.
■ Battery Cost & Technological Innovation: The price of an EV is mostly influenced by the cost of batteries. Over time, battery prices have been gradually declining. The same pattern might persist in the future, lowering the cost of EVs. The cost of EVs may potentially change as a result of technological improvements as well. Older, more well-established technologies can lower the cost of EVs whereas newer, more advanced technologies can raise the price of EVs.
■ Uber Partners with various EV Makers: Uber has expanded its partnership with various EV partners including Lithium Urban Technologies, Everest Fleet Pvt Ltd, and Moove with an aim to deploy 25000 electric cars in India over the next 2 years.
■ TATA Accounts for the Major Market Share: TATA currently dominates the EV market in India with its two models, the Nexon EV and Tigor EV. MG's ZS EV holds 9% of the market share, while Hyundai Kona accounts for 1.6% of the market share. The most successful Evs from the TATA are under USD 20,000 which appeals the buyers looking for a second car for city commutes.

The study conducted by Makreo Research on the " India Electric Vehicle (EV) Market Size and Competitive Landscape - Segmentation by Vehicle Type, OEM, and Geography" provides a comprehensive analysis of the market, encompassing a wide range of factors. The report takes into account both qualitative and quantitative factors, indicating a well-rounded approach to analysis. The inclusion of both qualitative and quantitative factors in the study ensures that readers gain a more complete understanding of the India Electric Vehicle Market. It goes beyond mere numbers and incorporates insights into consumer behavior, industry trends, and market dynamics. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the electric vehicle market in India. Moreover, the report's focus on past and present performance, as well as potential growth opportunities in the future, enables readers to identify key areas of interest and investment. Future market assessment has not been conducted.

Period of Study
2018-2022 : Past and Present Scenario

Market Assessment:
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For more information on the research report, refer to below link:
https://www.makreo.com/report/india-electric-vehicle-ev-market-size-competitive-landscape

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