India's EV Surge: Registrations Skyrocket to 28.3 Million, Fueling Economic Growth and Sustainability

Vantage Market Research

Feb 26, 2024

India’s electric vehicle (EV) landscape has witnessed remarkable growth as in 2013, only 53,387 electric vehicles were registered in India. However, by August 2023, this figure surged to an impressive 28,30,565. This data was released by the Ministry of Road Transport and Highways, Government of India. It's is further projected in an latest economic Survey that by 2030, annual EV sales could surpass one crore units, fostering the creation of five crore direct and indirect jobs. To achieve net-zero emissions by 2070, the Indian government is implementing various measures to bolster the EV sector. The Union Budget 2023-24 extended customs duty exemptions on capital goods and machinery necessary for manufacturing lithium-ion cells, crucial for EV batteries.

Moreover, significant reductions in Goods and Services Tax (GST) rates have been announced, with EVs now taxed at 5% (down from 12%) and chargers/charging stations taxed at 5% (down from 18%). Commercial and private battery-operated vehicles also receive green license plates and are exempt from permit requirements. The Ministry of Power issued revised guidelines mandating private players to install charging stations to fortify the public EV charging infrastructure nationwide. Oil Marketing Companies have committed to establishing 22,000 EV charging stations in key urban centers and along national highways.

India introduced Battery Waste Management Rules in 2022 to curb import dependency, aiming to recycle or refurbish all types of batteries, including those used in EVs. By 2030, the goal is to increase the recycled content of EV batteries to 20%, including imported products. Exciting developments continue to emerge, with Tamil Nadu setting a target for 30% of its bus fleet to be electric by 2030, aligning with broader strategies to promote EV adoption and infrastructure.

Analysts at Vantage Market Research foresee a positive trajectory for India's EV market, driven by government incentives, escalating fuel prices, and expanding EV infrastructure. Leading domestic players like Mahindra & Mahindra Ltd. and Tata Motors are gaining international recognition, attracting global investors seeking growth opportunities in emerging markets.

Electric Vehicle Market Size, Share & Trends Analysis Report by Vehicle Type (Passenger Vehicles, Commercial Vehicles) by Component (Battery Cells & Packs, On-Board Charge, Motor, Reducer, Fuel Stack, Power Control Unit, Battery Management System, Fuel Processor, Power Conditioner, Air Compressor, Humidifier) by Vehicle Class (Low-priced, Mid-priced, Luxury) by Top Speed (<125 MPH, >125 MPH) by Vehicle Drive Type (Front Wheel Drive, Rear Wheel Drive, All Wheel Drive) by EV Charging Point Type (Normal Charging, Super Charging) by Vehicle Connectivity (V2B or V2H, V2G, V2V, V2X) by Propulsion (BEV, PHEV, FCEV) by End Use (Private Vehicle, Commercial Fleets) by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Assessment (2018 - 2023) & Forecast (2024 - 2032)