Electric Vehicle Market in India

India Electric Vehicle Market:

The India electric vehicle market size reached USD 2,361.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 164,420.4 Million by 2033, exhibiting a growth rate (CAGR) of 57.23% during 2025-2033. 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.

India Electric Vehicle Market Analysis:

• Major Market Drivers: Supporting government initiatives and policies, numerous technological advancements, continuous infrastructure development, and rising prices of fuel are some of the primary factors stimulating the market growth. Moreover, the expansion of charging infrastructure is crucial for the widespread adoption of EVs. Both government and private sectors are investing in the development of charging stations across the country. This growing network of charging points makes owning and operating an EV more convenient for consumers, thereby proliferating the India electric vehicle market growth.
• Key Market Trends: The surging adoption of electric vehicles, growing consumer environmental consciousness, increasing government push towards e-mobility, etc., are expected to propel the market demand. Moreover, the declining cost of batteries are making EVs more affordable and efficient, thereby proliferating the India electric vehicle market demand.
• Competitive Landscape: Some of the major market players in India electric vehicle industry includes 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), and VE Commercial Vehicles Limited, among many others. 
• Geographical Trends: South India acquired the largest share in the India electric vehicle market. Government initiatives and policies aimed at promoting EV adoption play a crucial role. In South India, state governments offer incentives such as subsidies, tax rebates, and exemptions to EV manufacturers and buyers. Additionally, initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provide financial support for EV adoption, including charging infrastructure development.
• Challenges and Opportunities: High initial costs, underdeveloped charging infrastructure, major dependency of non-renewable energy, and lack of awareness among consumers are some of the challenges that the market is facing. However, the Indian government is actively promoting the EV sector through various policies and incentives, further propelling the EV adoption in India.

India Electric Vehicle Market Trends:

Rising Prices of Fuel

The rising fuel prices in India are significantly contributing to the growth of the electric vehicle (EV) market. As the cost of gasoline and diesel continues to escalate, consumers are increasingly turning to electric vehicles as a cost-effective alternative. For instance, in the fiscal year 2023, the high-speed diesel oil wholesale price index in India exceeded INR 191. In India, the price index value of diesel oil rose by around 91% when compared to 2012. This shift is driven by the lower operating costs associated with EVs, which include reduced fuel expenses and lower maintenance costs compared to internal combustion engine (ICE) vehicles. Besides this, the surging price of crude oil is also shifting the demand towards electric vehicles. For instance, in the fiscal year 2023, the average price of Indian basket crude oil was projected to be US$ 97.67 per barrel. This figure represents a significant rise above the average of US$ 78.19 per barrel in the previous year. Moreover, advances in battery technology are enhancing the appeal of EVs. Improved energy density, faster charging times, and longer driving ranges are addressing consumer concerns about range anxiety and convenience, making EVs a more practical choice for everyday use​. For instance, in March 2024, MG Motor India launched MG ZS EV new Excite Pro variant that comes with fast charging. The model would get the power from a 50.3 kWh battery pack that offers a range of 461 km on a single charge. Moreover, it just takes 60 minutes to get to 80% with a 50-kW charger. These factors are further positively influencing the India electric vehicle market forecast.

Increasing Government Initiatives

The Indian government has introduced various initiatives to promote the adoption of electric vehicles and the development of charging infrastructure. For instance, in February 2024, the Ministry of Heavy Industries, Government of India, launched the Electric Mobility Promotion Scheme (EMPS) 2024. This is a fund-limited scheme with a total of Rs. 500 crores over the course of four months, from April 1, 2024, to July 31, 2024, to encourage the faster adoption of electric two-wheelers and three-wheelers. The goal is to further boost the nation's EV manufacturing ecosystem and promote green mobility. Moreover, advances in charging technologies, such as fast chargers and battery swapping stations, are making EVs more convenient for consumers. This is helping to alleviate range anxiety, a common concern among potential EV buyers. For instance, in May 2024, Exicom launched Harmony Gen 1.5 DC, India's fastest DC Charger with a capacity of up to 400 kW. The charger is equipped with an advanced AI-driven remote management system, high operational efficiency, and many more features. These factors are escalating the industry’s growth. In addition, the rapid urbanization, and the development of smart cities in India are creating a conducive environment for the adoption of electric vehicles. Smart city projects often include the establishment of EV charging infrastructure as part of their urban planning. For instance, in February 2024, Hyundai Motor India launched 11 ultra-high-speed public EV charging stations across key highways and six major cities in India. These factors are further contributing to the India electric vehicle market share.

Development of Self-Driving Electric Vehicle Technology

Self-driving capabilities add an extra layer of convenience and comfort for consumers. Integration of autonomous features in electric vehicles makes them more attractive options compared to traditional vehicles, leading to an increased adoption. Moreover, self-driving EVs can potentially reduce operational costs for businesses and individual owners. Features like autonomous driving and parking can lead to improved fuel efficiency, lower maintenance costs, and reduced labor expenses across the transportation and logistics sectors. For instance, in April 2024, Ola, a mobility platform, launched a unique addition to the electric scooter market: the 'Ola Solo.' Solo, known as 'India's first autonomous electric scooter,' has features that promise to revolutionize urban commuting. The Solo electric scooter is packed with technology, including cutting-edge AI capabilities for a smarter, safer, and more convenient journey. Solo, which is powered by an in-house built chip called the LMA09000, uses artificial intelligence to traverse streets. Its adaptive system, JU-GUARD, ensures constant learning from each ride, which improves efficiency and performance. In line with this, in 2023, Minus Zero, an AI start-up based in Bengaluru launched India's first autonomous vehicle. The electric device known as zPod, which is built on a camera-sensor suite, can operate in any type of environment or location and can even reach Level 5 autonomy, which means it can operate without human intervention in all driving conditions. These factors are bolstering the India electric vehicle market revenue.

India Electric Vehicle Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India EV (electric vehicle) market report, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on vehicle type, price category, and propulsion type.

Vehicle type Insights:

• Passenger Vehicles
• Commercial Vehicles
• Others

Passenger vehicles represented the largest segment

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.

According to the India electric vehicle market outlook, the demand for passenger electric vehicles is driven by various factors, including technological advancements, government incentives, and changing consumer preferences. Moreover, the Indian government has implemented various policies and incentives to promote the adoption of EVs. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, along with state-level incentives, has been instrumental in encouraging both manufacturers and consumers. These incentives include subsidies, tax benefits, and support for setting up charging infrastructures. For instance, in March 2024, around 9,503 electric passenger vehicles were sold in India.

Price Category Insights:

• Mid-Range
• High/Luxury Range

Mid-range accounted for the largest market share

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 per the India electric vehicle market overview, with the fluctuating and often increasing prices of fossil fuels, consumers are looking for more economical alternatives. Electric vehicles offer lower running costs compared to traditional internal combustion engine (ICE) vehicles. The savings on fuel expenses over time make mid-range EVs a financially viable option for many Indian consumers. Moreover, the Indian government has implemented various policies and incentives to promote the adoption of electric vehicles. Schemes like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) provide subsidies, tax benefits, and other incentives to both manufacturers and consumers. These measures significantly reduce the cost of EVs, making them more attractive to a broader segment of the population. For instance, in May 2024, Stellantis and Leapmotor partnered for major global expansion and Leapmotor announced to enter Indian Market by Q4 2024 to bring affordable electric vehicles. 

Propulsion Type Insights:

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

Battery electric vehicles accounted for the largest market share

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.

BEVs are becoming popular owing to their low running costs, including reduced fuel expenses and maintenance. Moreover, rising fuel prices are pushing consumers to consider electric vehicles as a more economical alternative. Moreover, continuous improvements in battery technology are making electric vehicles more efficient and affordable. The cost of lithium-ion batteries has been decreasing, which reduces the overall cost of BEVs. Additionally, advancements in battery capacity and charging speeds are addressing concerns related to driving range and charging times​. For instance, in March 2024, Volkswagen, a German carmaker, revealed the ID.4, its first battery-electric vehicle, for the Indian auto market. Volkswagen ID.4 is expected to go on sale in India by the end of 2024. 

Regional Insights:

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

South India dominated the overall market

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 vehicles.

According to India electric vehicle market statistics, 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. For instance, in May 2024, Matel, an electric vehicle component maker based in Pune, Maharashtra, raised funds of US$ 4 Million by a clean energy-focused venture fund, Transition Venture Capital.

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 is only a partial list of the key players, and the complete list is provided in the report.)

India Electric Vehicle Market News:

• May 2024: Exicom launched Harmony Gen 1.5 DC, India's fastest DC Charger for electric vehicles with a capacity of up to 400 kW.
• May 2024: Matel, an electric vehicle component maker based in Pune, Maharashtra, raised funds of US$ 4 Million by a clean energy-focused venture fund, Transition Venture Capital.
• April 2024: Ola, a mobility platform, launched a unique electric scooter market: the 'Ola Solo' which is known as 'India's first autonomous electric scooter’.

India Electric Vehicle Market Report Scope:

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 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India electric vehicle market.
• 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.