India to Lead Global Electric Vehicle Market by 2030, Says Commerce & Industry Minister Piyush Goyal

In a promising projection for India's automotive industry, Union Minister of Commerce and Industry, Piyush Goyal, declared that India is on track to becoming the world's largest electric vehicle (EV) market by 2030. 

Speaking at the inauguration of the Bharat Mobility Global Expo 2024, Goyal highlighted India's rapid strides in pioneering technologies such as advanced energy storage, e-mobility, and green hydrogen, which have garnered international recognition.

Piyush Goyal emphasized, "India is now being recognized across the world with the pace at which we are doing pioneering work in technologies like advanced energy storage and e-mobility and green hydrogen. By 2030, India could become the world’s largest electric vehicle market."

The optimism surrounding India's EV sector is supported by the ambitious targets set by the public policy think tank Niti Aayog, aiming for 30 percent of total vehicle sales to be electric by 2030. This target, coupled with a projected compound annual growth rate (CAGR) of 49 percent between 2022 and 2030, underscores the significant momentum driving India's electric mobility transition.

Presently ranked as the third-largest automobile market globally, India is witnessing a steady uptick in EV adoption, with electric vehicle sales accounting for approximately 3-5 percent of total sales. Notably, the country's electric vehicle market recorded a remarkable 49 percent year-on-year growth in 2023, totaling 1.53 lakh units, with two-wheelers leading the charge. Cumulatively, it's estimated that around 7.6 lakh electric vehicles have been registered in the country thus far.

FAME and Interim Budget

Government initiatives, including the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme, have played a pivotal role in incentivizing early-stage electric vehicle adoption. Additionally, the introduction of a production-linked incentive scheme for advanced chemistry cell manufacturing is poised to drive down battery costs, further stimulating EV uptake.

In the recent interim budget for 2024-2025 (FY25), Finance Minister Nirmala Sitharaman reiterated the government's commitment to bolstering the e-vehicle ecosystem. Emphasizing the importance of enhancing manufacturing and charging infrastructure, the budget outlined plans to incentivize greater adoption of e-buses for public transport networks through a payment security mechanism.

CarBike360 Says

As India accelerates its transition towards sustainable mobility, propelled by supportive government policies and growing consumer interest, all signs point towards the nation assuming a leadership role in the global electric vehicle market by the end of the decade.

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