India’s EV Penetration Increases to More than 7 Percent in 2024, May Reach 30 Percent by 2030

Sales of Electric Vehicles (EV) have increased rapidly in the last few years in India. Last year, the share of EV in total vehicles was about 7.4 percent. This figure is expected to increase to 30-35 percent by financial year 2030. Incentives are being given by the Central Government and State Governments to increase the sales of EV.

SBI Capital Markets’ “SBI Capital Markets” report states that one in every four vehicles sold worldwide last year was an EV. It has been said in this report that EV sales in the country can increase rapidly. This could be like the shift in the telecom sector from 3G to 4G. Incentives are also being given to increase the sales of EV. These include five percent Goods and Services Tax (GST) on EVs, lower road tax in many states and subsidies under PM E-DRIVE as well as FAME schemes.

Electric two-wheelers and three-wheelers have a major share in EV sales in the country. However, there are also obstacles in increasing the sales of these vehicles like high prices and lack of charging infrastructure. Efforts are being made around the world to increase the use of renewable energy to reduce the effects of climate change and greenhouse gas emissions. Electric vehicles can also make a big contribution in this. This report states that to reach 100 GWh battery capacity by FY 2030, capital expenditure of about Rs 600 billion will be required. About 75 percent of the battery requirements in the country are met by imports.

Last year, Road Transport and Highways Minister Nitin Gadkari had said that the country’s EV industry can reach around Rs 20 lakh crore by 2030. This industry is currently worth Rs 4.50 lakh crore. There is a possibility of creation of about five crore employment opportunities in this industry in the next five years. Gadkari had said that it is important to increase the sales of EV as an alternative to vehicles running on petrol and diesel. He had told, “We import fossil fuel worth about Rs 22 lakh crore. This is a big economic challenge. This import of fossil fuel is causing a lot of problems in our country.” India is the third largest automobile market in the world after America and China. Despite this, the number of EVs in the country is quite low.