India aims for 30% electric vehicle sales by 2030

The Indian government has announced an ambitious objective to ensure that electric vehicles (EVs) account for 30% of all new vehicle sales by the year 2030. This initiative is part of a broader strategy aimed at addressing environmental issues, minimising carbon emissions, and advocating for sustainable modes of transportation. With increasing backing from both governmental frameworks and private industry investments, the electric vehicle sector in India is surging ahead. The feasibility of achieving this target, however, remains to be evaluated.

India’s electric mobility sector has witnessed notable expansion in recent times, establishing the nation as one of the quickly evolving EV marketplaces worldwide. According to industry projections, the sector is anticipated to experience a compounded annual growth rate (CAGR) of 49% from 2021 to 2030. By the projected year of 2030, it is estimated that 17 million electric vehicles will be sold annually—a substantial leap from the current market figures.

As of November 2024, the registration of over 1.3 million electric vehicles illustrates a rising consumer appetite for EVs, a trend significantly bolstered by robust government initiatives and a growing emphasis on sustainable transportation options.

Several government-driven policies have been instrumental in catalysing the growth of the EV market. The second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) programme, initiated in 2019, focuses on electrifying public and shared transport through subsidy provisions. This programme encompasses a wide array of vehicles, including 7,262 e-buses, 160,000 e-three-wheelers, and 1.5 million e-two-wheelers.

In addition to the FAME initiative, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage scheme aims to enhance domestic battery manufacturing—a critical element in the electric vehicle ecosystem. The outcomes of these initiatives have resulted in a 40% increase in registered EVs in 2023 compared to the previous year.

To further bolster its position as a global player in the electric vehicle industry, India’s government allocated a budget of $500 million to an EV policy in 2024, encouraging international manufacturers to set up operations within the country. Such policies, complemented by incentives from the Production Linked Incentive (PLI) scheme, are pivotal in facilitating both supply chains and consumer demand for electric vehicles.

Nevertheless, significant challenges continue to loom over the progress of the electric mobility sector. One of the primary issues faced is the underdeveloped charging infrastructure. Current figures indicate that more than 25,000 public charging stations are operational, yet the pressing necessity for enhanced coverage remains a critical factor in achieving mass EV adoption. Moreover, the cost associated with electric vehicles poses an additional challenge, as they tend to be priced higher than their conventional counterparts, despite the availability of government subsidies.

In summary, India’s electric mobility sector is progressing on an upward trajectory, propelled by steadfast governmental encouragement, policy incentives, and an emerging consumer focus on sustainable transport. However, achieving the 30% EV adoption target by 2030 requires addressing the challenges of infrastructure, cost-effectiveness, and potential supply-chain impediments. Increased investment, innovation, and continued policy support are essential to turning this ambitious vision into a reality, bringing India closer to an electrified future.

Source: Noah Wire Services