India’s automotive landscape is undergoing a dramatic transformation, driven by a powerful surge in the electric vehicle (EV) industry. From bustling city streets to remote rural roads, the shift towards sustainable mobility is becoming increasingly visible. This blog, “An Overview of the Electric Vehicle Industry in India,” delves deep into this dynamic sector, exploring its current state, key drivers, challenges, and future potential.

As concerns about air pollution and climate change intensify, the Indian government, along with private players, is aggressively promoting EV adoption. This comprehensive guide will illuminate the intricate web of policies, technological advancements, and market trends shaping India’s EV revolution. We’ll examine the growing ecosystem of EV manufacturers, ev charging infrastructure providers, and battery technology developers, while also addressing the crucial aspects of consumer adoption and affordability. Whether you’re an industry professional, an aspiring EV owner, or simply curious about the future of transportation in India, this overview provides valuable insights into the electrifying journey ahead. Join us as we navigate the exciting and rapidly evolving world of electric vehicles in India.

What is an Electric Vehicle?

An electric vehicle (EV) is a mode of transportation powered by electric energy instead of conventional fuels like petrol or diesel. Unlike internal combustion engine (ICE) vehicles, EVs utilize electric motors and rechargeable batteries, making them eco-friendly and cost-effective. EVs help reduce carbon emissions, lower fuel expenses, and contribute to energy efficiency.

Types of Electric Vehicles

Electric vehicles can be categorized based on their power sources and energy efficiency:

1. Battery Electric Vehicles (BEVs): These are fully electric vehicles powered by batteries. They require external charging and produce zero emissions. Examples include the Tata Nexon EV and MG ZS EV.
2. Plug-in Hybrid Electric Vehicles (PHEVs): These vehicles combine an internal combustion engine (ICE) with a rechargeable battery. They can run on both electricity and fuel, offering flexibility. Example: Toyota Prius Plug-in Hybrid.
3. Hybrid Electric Vehicles (HEVs): Unlike PHEVs, HEVs charge their batteries through regenerative braking and the ICE. They cannot be externally charged. Example: Honda City Hybrid.
4. Fuel Cell Electric Vehicles (FCEVs): These vehicles generate electricity through a chemical reaction between hydrogen and oxygen. Though not widely available in India, they hold promise for the future.

What is EV Charging & How Does it Work?

EV charging refers to the process of replenishing an electric vehicle’s battery using an external power source. EV Charging stations, also known as Electric Vehicle Supply Equipment (EVSE), provide different charging speeds based on power output:

1. Level 1 Charging: Uses a standard household socket (120V) and takes the longest time.
2. Level 2 Charging: Utilizes 240V outlets, commonly installed in homes, offices, and public places, reducing charging time significantly.
3. DC Fast Charging: Provides rapid charging using direct current, enabling EVs to charge up to 80% within 30-60 minutes.

Current Scenario of the EV Industry in India

India’s EV sector is witnessing remarkable growth, with government policies like FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) and state-level subsidies fueling adoption. Let’s explore the present landscape across different vehicle segments:

1. Passenger Cars

Electric passenger vehicles have seen a notable increase in adoption, with penetration rates projected to reach 4-6% by the end of the fiscal year 2025. Automakers are actively introducing new EV models to cater to diverse consumer preferences.

2. Two-Wheelers

The electric two-wheeler (e2W) segment has emerged as a frontrunner in India’s EV market, accounting for 85-90% of total EV sales in the fiscal year 2023. Penetration of e2Ws in overall two-wheeler sales increased nearly 5% during this period.

3. Three-Wheelers

Electric rickshaws (e-rickshaws) and electric three-wheelers are revolutionizing last-mile connectivity in India. Electric three-wheelers have gained traction, achieving a 7% penetration rate in fiscal year 2023 (excluding the e-rickshaw segment). This rate is expected to rise to 14-16% by fiscal year 2025. 

4. Heavy-Duty Vehicles

Heavy-duty vehicles (HDVs) like Electric trucks, electric buses, and hydrogen-powered heavy vehicles are gaining traction, reducing carbon emissions and operating costs. The electric bus segment has seen significant growth, with over 1,800 units sold in fiscal year 2023. Penetration is predicted to rise to 11-13% by fiscal year 2025.

Key Players in the EV Industry

1. Electric Vehicle Manufacturers

ii) List of India’s Passenger electric vehicle manufacturers

• Tata Electric
• Mahindra Electric
• MG Motors
• Hyundai India
• BYD

ii) List of India’s Two-wheelers electric vehicle manufacturers

• Ola Electric
• Ather Energy
• Bajaj Auto
• TVS Motor Company

ii) List of India’s Three-wheelers Electric Vehicles manufacturers

• Mahindra Electric
• Piaggio Vehicles
• Atul Auto
• Omega Seiki Mobility (OSM)

ii) List of India’s Heavy-Duty Electric Vehicles manufacturers

• Tata Motors
• Ashok Leyland
• Eicher Motors (VE Commercial Vehicles)
• Mahindra Electric
• Olectra Greentech
• PMI Electro Mobility
• JBM 

2. EV Charger Manufacturers

The demand for charging solutions is rising, leading to the emergence of major EV charger manufacturers, such as:

• Servotech Renewable Power System
• Delta Electronics
• ABB India
• Tata Power EV Charging Solutions
• Exicom Power Solutions

3. EV Charging Infrastructure Developers

To support EV growth, various companies are developing charging networks across India, including:

• Incharz
• Tata Power
• Statiq
• ChargeZone
• Magenta Power
• Fortum India

Future of the Electric Vehicle Industry in India

India’s EV industry is poised for rapid growth, driven by strong government policies, increasing consumer demand, and advancements in battery technology. India’s electric vehicle market is projected to grow at a CAGR of 28.52%, reaching US$ 18.319 billion by 2029, up from US$ 5.22 billion in 2024. According to Fortune Business Insights, the market is expected to expand significantly, increasing from US$ 3.21 billion in 2022 to US$ 113.99 billion by 2029, with a 66.52% CAGR. By 2030, India aims for EVs to comprise 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers.EV sales are projected to reach 15.3 million units, with two- and three-wheelers leading. However, charging infrastructure remains a challenge, requiring 5.6–5.8 million public units. Battery costs, limited range, and reliance on imports are hurdles, but advancements in local manufacturing and alternative battery technologies will boost growth. This rapid growth is fueled by government incentives, rising consumer demand, and advancements in EV technology and infrastructure Green hydrogen and biofuels may play a future role.  

Conclusion

India’s electric vehicle industry is on a transformative journey, backed by supportive government policies, technological innovations, and increasing consumer demand. With a growing emphasis on sustainability and energy independence, EVs are set to become the preferred mode of transportation. As infrastructure and battery technology continue to evolve, the future of electric mobility in India looks bright, paving the way for a cleaner and greener tomorrow.

India’s EV Market is witnessing explosive growth, driven by a confluence of factors: government incentives, surging consumer demand, and a burgeoning ecosystem of startups and established players. 2024 has been a pivotal year, marked by significant advancements across the Electric Vehicles India spectrum, from Electric Two-Wheelers India and Electric Cars India to charging infrastructure and battery technology. This blog post delves into the key developments that have shaped the EV Industry India landscape in 2024, providing insights into the future trajectory of this transformative industry.

In 2024, India’s EV Industry saw substantial growth, with sales reaching about 1.94 million units, a 26.5% increase over the previous year. The market is expected to develop at a compound annual growth rate (CAGR) of 22.4%, reaching $117.78 billion by 2032. Electric Two-Wheelers India led the EV market, with sales of approximately one million units in fiscal year 2024. Despite this development, issues such as limited charging infrastructure and high car costs continue to impact adoption rates. The government’s ambitious goal of having EVs contribute to 30% of new car sales by 2030 faces challenges, including a 20% increase in hybrid vehicle sales that exceeded growth in pure EVs. Overall, while India’s EV Industry is on the rise, concentrated efforts are required to overcome current challenges and meet stated targets.

PM E-DRIVE Scheme 2024

In 2024, India introduced the PM E-DRIVE Scheme, committing ₹10,900 crore (~$1.3 billion) over two years to increase EV adoption and improve charging infrastructure. The program focuses on promoting Electric Two-Wheelers India and three-wheelers, e-ambulances, e-trucks, and e-buses, as well as extending public charging infrastructure. This effort intends to minimize pollution and shift to cleaner fuels, contributing to the government’s goal of having EVs account for 30% of new car sales by 2030. PM E-DRIVE, which was announced on September 29, 2024, also funds modifications to vehicle testing agencies, representing a substantial step towards sustainable transportation.

Key Ministry Guidelines

In 2024, the Ministry of Heavy Industries (MHI) published major guidelines to strengthen India’s EV sector:

• Electric Mobility Promotion Scheme 2024 (EMPS 2024): The ₹500 crore initiative (April 1 to July 31, 2024) intends to promote the use of Electric Two-Wheelers India and three-wheelers, including e-rickshaws and e-carts. It focuses on offering economical and environmentally friendly public transport options, with incentives for automobiles with advanced EV Battery Technology in India.
  
• PM E-DRIVE: This two-year initiative, announced on September 29, 2024, gives ₹10,900 crore to assist electric vehicles such as e-2Ws, e-3Ws, e-trucks, e-buses, e-ambulances, EV public charging stations, and enhancing vehicle testing agencies.
  
• Operational Guidelines for Electric Mobility Promotion Scheme-2024: Issued in March 2024, these guidelines outline the operational framework for EMPS 2024, detailing the procedures for implementing the scheme and ensuring effective utilization of allocated funds.

These initiatives reflect the government’s commitment to fostering a sustainable and robust EV ecosystem in India.

EV Charging Infrastructure

In 2024, India made major efforts towards expanding its EV infrastructure. Public charging stations increased from 10,261 in September 2023 to 16,347 by March 2024, indicating greater EV usage. Karnataka took the lead, accounting for 24% of the national total with 5,705 stations, followed by Maharashtra (3,615), Delhi (1,931), Uttar Pradesh (1,845), and Tamil Nadu (1,221). By mid-2024, these states would collectively account for 60% of the nation’s charging infrastructure. Delhi intended to install 18,000 public and semi-public charging outlets, and Kerala’s State Electricity Board prioritized charging infrastructure to encourage EV growth.

The Role of AI in EV and IoT in EV in Transforming EV Operations

In 2024, the integration of AI in EVs and the Internet of Things (IoT) transformed India’s electric vehicle operations. AI in EV-powered solutions improved traffic navigation, collision avoidance, and route optimization, resulting in safer and more efficient transportation. IoT in EV-enabled real-time diagnostics has enabled innovative business models such as Battery-as-a-business (BaaS), resulting in cost-effective EV ecosystems. Furthermore, AI in EV-powered helpdesk solutions boosted customer service, hence improving the overall user experience. These breakthroughs demonstrate AI in EV and IoT in EV’s disruptive impact on the EV industry.

BIS EV Standards

In 2024, the Bureau of Indian Standards (BIS) issued two pivotal standards—IS 18590:2024 and IS 18606:2024—to improve the safety and quality of Electric Vehicles in India in several categories. These standards concentrate on important components including the powertrain and battery systems, guaranteeing that Electric Two-Wheelers India, four-wheelers, and heavy-duty vehicles fulfill strict safety criteria. BIS also created IS 18294:2023, which establishes safety requirements for e-rickshaws and e-carts, which are becoming increasingly popular throughout India. With these new standards, the BIS now has a total of 30 Indian Standards for electric vehicles and their components, including charging stations.

The Road Ahead: What 2025 Holds for the EV Industry

In 2025, India’s EV sector is expected to undergo revolutionary growth. Policies such as decreased GST on EV batteries, incentives for domestic production, and infrastructure status for charging stations are projected to boost adoption even further. The Vision 2030: PM Public Transport Sewa initiative, which includes plans to build 6,000 km of EV-ready highways along the Golden Quadrilateral and extend e-bus networks, demonstrates the government’s commitment to improving EV infrastructure.

Private sector involvement remains crucial, with companies such as Reliance Infrastructure exploring EV manufacture and global automakers releasing market-specific models. India’s EV Industry is expected to increase from $2 billion in 2023 to $7.09 billion by 2025, paving the path for an electrified and environmentally friendly future.