India Electric Vehicle Market Size

The India Electric Vehicle Market is experiencing a substantial transformation, driven by the country's commitment to clean energy and carbon emission reduction. This market encompasses various segments, including passenger cars, commercial vehicles, and two-wheelers, each with distinct dynamics and growth potential. The electric passenger car segment is expanding rapidly, supported by increased consumer awareness and favorable government policies, despite its current smaller size compared to conventional vehicles. Meanwhile, the electric commercial vehicle sector is poised for significant growth, fueled by a focus on sustainability and cost-effectiveness in logistics and transportation. Government initiatives and operational cost benefits are encouraging the adoption of electric options, which are vital for meeting India's environmental goals and enhancing urban air quality.

Market Size of india electric vehicle Industry

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India Electric Vehicle Market Summary
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Icons Lable Value
https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2030
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Base Year For Estimation 2023
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 34.8 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2030) USD 120 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2030) 22.92 %
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Key Players

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India Electric Vehicle Market Analysis

The India Electric Vehicle Market size is estimated at 34.8 billion USD in 2024, and is expected to reach 120 billion USD by 2030, growing at a CAGR of 22.92% during the forecast period (2024-2030).

34.8 Billion

Market Size in 2024 (USD)

120 Billion

Market Size in 2030 (USD)

126.29 %

CAGR (2017-2023)

22.92 %

CAGR (2024-2030)

Largest Segment by Fuel Category

98.38 %

value share, BEV, 2023

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BEVs dominate India's EV market due to government incentives, rising fuel prices, and increasing awareness about the environmental benefits of electric mobility.

Fastest-growing Segment by Fuel Category

85.36 %

Projected CAGR, FCEV, 2024-2030

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FCEVs are the fastest-growing segment due to advancements in hydrogen fuel cell technology, government initiatives supporting hydrogen as an alternative fuel, and efforts to reduce air pollution.

Largest Segment by Vehicle Type

89.17 %

value share, Two-Wheelers, 2023

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Two-wheelers dominate the market due to their affordability, convenience in navigating congested urban areas, lower operating costs, and increasing consumer adoption of electric scooters and bikes.

Leading Market Player

19.07 %

market share, Ola Electric Mobility Pvt. Ltd., 2023

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Ola Electric Mobility Pvt. Ltd. leads the market with its innovative electric scooters, strong investment in R&D, and aggressive expansion plans, making significant strides in the Indian EV landscape.

Second leading Market Player

11.89 %

market share, TVS Motor Company Limited, 2023

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TVS Motor Company Limited is a major player due to its extensive range of electric two-wheelers, strong brand recognition, and widespread dealership network across India, catering to diverse consumer needs.

India's comprehensive strategy to adopt electric vehicles (EVs) across various vehicle categories is driving the nation's transition toward sustainable mobility

  • India's electric vehicle (EV) market, segmented by vehicle type into passenger cars, commercial vehicles, and two-wheelers, is undergoing a significant transformation, reflecting the country's commitment to embracing clean energy and reducing carbon emissions. Each segment caters to distinct market dynamics, user needs, and growth potential, painting a comprehensive picture of India's journey toward electric mobility.
  • Electric passenger cars are steadily gaining traction in the Indian market, driven by increasing consumer awareness, favorable government policies, and the growing presence of both international and local manufacturers. Although currently small compared to conventional vehicles, the segment is witnessing a rapid expansion in offerings, ranging from affordable models aimed at the mass market to premium electric cars catering to the luxury segment.
  • The electric commercial vehicle sector, though still in its early stages, is set to witness significant growth. This growth is being driven by a rising emphasis on sustainability and cost-effectiveness within the logistics and transportation sectors. Electric buses, trucks, and vans are gradually making their way into urban fleets, supported by government initiatives aimed at reducing pollution and promoting electric mobility in public transportation and goods delivery. The operational cost benefits of electric commercial vehicles, coupled with various state and central government incentives, are encouraging fleet operators and businesses to transition toward electric options. This segment's growth is critical for achieving India's ambitious environmental targets and improving urban air quality.
India Electric Vehicle Market

India Electric Vehicle Industry Segmentation

Commercial Vehicles, Passenger Vehicles, Two-Wheelers are covered as segments by Vehicle Type. FCEV, HEV are covered as segments by Fuel Category.

  • India's electric vehicle (EV) market, segmented by vehicle type into passenger cars, commercial vehicles, and two-wheelers, is undergoing a significant transformation, reflecting the country's commitment to embracing clean energy and reducing carbon emissions. Each segment caters to distinct market dynamics, user needs, and growth potential, painting a comprehensive picture of India's journey toward electric mobility.
  • Electric passenger cars are steadily gaining traction in the Indian market, driven by increasing consumer awareness, favorable government policies, and the growing presence of both international and local manufacturers. Although currently small compared to conventional vehicles, the segment is witnessing a rapid expansion in offerings, ranging from affordable models aimed at the mass market to premium electric cars catering to the luxury segment.
  • The electric commercial vehicle sector, though still in its early stages, is set to witness significant growth. This growth is being driven by a rising emphasis on sustainability and cost-effectiveness within the logistics and transportation sectors. Electric buses, trucks, and vans are gradually making their way into urban fleets, supported by government initiatives aimed at reducing pollution and promoting electric mobility in public transportation and goods delivery. The operational cost benefits of electric commercial vehicles, coupled with various state and central government incentives, are encouraging fleet operators and businesses to transition toward electric options. This segment's growth is critical for achieving India's ambitious environmental targets and improving urban air quality.
Vehicle Type
Commercial Vehicles
Buses
Heavy-duty Commercial Trucks
Light Commercial Pick-up Trucks
Light Commercial Vans
Medium-duty Commercial Trucks
Passenger Vehicles
Hatchback
Multi-purpose Vehicle
Sedan
Sports Utility Vehicle
Two-Wheelers
Fuel Category
FCEV
HEV
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India Electric Vehicle Market Size Summary

The India Electric Vehicle (EV) market is experiencing a transformative phase, driven by the country's commitment to clean energy and carbon emission reduction. This market is segmented into passenger cars, commercial vehicles, and two-wheelers, each with unique dynamics and growth potential. Electric passenger cars are gaining popularity due to increased consumer awareness, supportive government policies, and the entry of both international and local manufacturers. Although the segment is currently smaller than conventional vehicles, it is rapidly expanding with a range of offerings from affordable to luxury models. The electric commercial vehicle sector, though nascent, is poised for significant growth, propelled by sustainability and cost-effectiveness in logistics and transportation. Government initiatives are further supporting the integration of electric buses, trucks, and vans into urban fleets, aiming to reduce pollution and enhance urban air quality.

The Indian government's proactive measures, such as the Fame India scheme and the Vehicle Scrappage Policy, are pivotal in driving the electrification of vehicles. These policies, along with state-level initiatives, are encouraging the transition from internal combustion engines to electric vehicles, particularly in public transportation. The demand for electric cars is expected to rise significantly, with an ambitious target set for 30% electrification of all cars by 2030. The market is moderately consolidated, with major players like Ampere Vehicle Private Limited, Ather Energy Pvt. Ltd., and Ola Electric Mobility Pvt. Ltd. leading the charge. Recent developments, such as Ola Electric's launch of the S1X scooter and Gabriel India's component development for electric vehicles, highlight the ongoing innovation and investment in the sector, underscoring India's strategic focus on electric mobility.

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India Electric Vehicle Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Vehicle Type

      1. 1.1.1 Commercial Vehicles

        1. 1.1.1.1 Buses

        2. 1.1.1.2 Heavy-duty Commercial Trucks

        3. 1.1.1.3 Light Commercial Pick-up Trucks

        4. 1.1.1.4 Light Commercial Vans

        5. 1.1.1.5 Medium-duty Commercial Trucks

      2. 1.1.2 Passenger Vehicles

        1. 1.1.2.1 Hatchback

        2. 1.1.2.2 Multi-purpose Vehicle

        3. 1.1.2.3 Sedan

        4. 1.1.2.4 Sports Utility Vehicle

      3. 1.1.3 Two-Wheelers

    2. 1.2 Fuel Category

      1. 1.2.1 FCEV

      2. 1.2.2 HEV

India Electric Vehicle Market Size FAQs

The India Electric Vehicle Market size is expected to reach USD 34.80 billion in 2024 and grow at a CAGR of 22.92% to reach USD 120.04 billion by 2030.

In 2024, the India Electric Vehicle Market size is expected to reach USD 34.80 billion.

India Electric Vehicle Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030