India Electric Vehicle Market Overview 2022 & 2023
EV sales in India were recorded at 1.3 million for 2022, and are expected to touch 1.7 million units by the end of 2023 according to IESA’s projection as per business-as-usual scenario. EV market in India is expected to witness CAGR of 35% from 2023 to 2032 under business-as-usual scenario. The report covers market estimates and forecasts for India EV market by vehicle segments i.e. E-2 wheeler, E-3 wheeler, E-4 wheeler, E-bus and E-truck in terms of annual unit sales and annual battery demand (GWh).
Factors driving EV market in India include:
- FAME-II subsidy
- Entry of large number of OEMs
- Auto components production liked incentive scheme
- Major push to replace ICE fleet with EVs
However, EV market in India is currently facing challenges such as:
- High cost of EV
- Lack of public charging infrastructure
- Requirement of investment for power grid upgradation
- Absence of subsidy in some segments
State governments in India are taking active steps through their respective EV policies to increase EV adoption, providing demand incentives such as subsidy on new EV purchase, road tax exemption, registration fee exemption, and scrapping and retrofit incentives.
Incentives and support under state EV policies are centered around manufacturing, charging infrastructure, R&D, battery recycling, employment generation and skill development. For instance, states such as Tamil Nadu, Haryana, Andhra Pradesh and Uttar Pradesh are providing incentives to encourage investment both, EV manufacturing and component manufacturing, while also looking to aid local EV ecosystem in the state.
EV Market Overview, 2022
E-2 wheeler segment witnessed EV sales of around 0.8 million in 2022, owing to low cost and increase in subsidy for this segment from June 2021 to May 2023. Under E-3 wheeler category, low-speed E-rickshaws held a dominant share over high-speed E-3 wheelers. However, new players have entered the high-speed E-3 wheeler category, providing more options to end users.
E-4 wheeler adoption in India is driven by requirement of personal mobility and taxi fleet operators. In 2022, personal mobility dominated with around 87% market share, against 13% for fleet operators. However, sales for fleet operators have jumped four-fold in 2022 over 2021 numbers as attractive total cost of ownership prompted players such as Ola and Uber to begin replacing ICE vehicles with EVs.
E-bus segment sales have been driven by subsidy available for the category, specifically for government end-use. Convergence Energy Services Ltd acts as the major tendering agency, and is working to deploy 50,000 E-buses under the National Electric Bus Program. E-truck is one of the newer segments in India, and therefore, sales are lowest compared with other EV segments in 2022, owing to limited product offerings by players and absence of subsidy.
In terms of battery chemistries, lead acid is utilized for low-speed E-2 wheelers and low-speed E-rickshaws, while lithium-ion battery chemistries such as LFP and NMC are widely utilized in all other EV segments. Other lithium-ion chemistries such as NCA, LTO and LMO have witnessed limited application, with utilization only by certain specific players.
Source: CES Analysis
Additional Key Points Covered:
- India EV Market Drivers
- EV Market Developments by Segments, 2022-32
- EV Battery Demand Forecast by Segment
- Competitive Landscape
- Total Cost of Ownership Analysis by EV Segments
- Central Level Policy & Regulations
- State EV Policies
Who Should Buy the Report:
- Global EV OEMs
- EV Commercial Fleet Owner
- Government Agencies
- State Transport Utilities
- Financial Institution & Investors