Until a few years ago, the concept of electric vehicles was alien to us. However, today, we have over 2.8 million registered EVs on Indian roads as of August 8, 2023. Electric vehicles have gained popularity over the course of time and have emerged as a cleaner, more efficient and safer alternative to traditional cars.
The EV industry is a sunrise sector in India and is on its way to unprecedented growth. Over the next decade, it will revolutionize the automotive industry in India, and electric vehicles will be the future of mobility. Let’s look at some of the trends that will be pivotal in shaping the electric vehicle’s trajectory in the coming times:
Increased EV sales and market share
The EV industry is growing rapidly in India. Manufacturers are amping up their efforts to produce EVs and offer a broader range of models and price points to customers. EV sales are expected to surge and touch the 1 crore mark by 2023. At this pace, EV sales will spike over the next decade and will hold a significant share of global vehicle sales. The government’s support is integral in encouraging EV adoption through incentives and regulations like tax credits, rebates, stricter emission standards, etc. Initiatives like these will further accelerate the transition from conventional ICE (Internal Combustion Vehicles) vehicles to electric variants.
Charging infrastructure expansion
On-the-go charging will be the key to EV growth in India. Investments in EV battery charging stations are expected to rise multi-fold over the next decade, which will be vital for charging infrastructure expansion in the country. In fact, fast-charging stations will become more prevalent in the times to come. It is expected advancements in wireless charging technology will eliminate the need for physical plugs and cords, further making the charging process easy, convenient and practical.
Investments from both government and private companies are playing an integral role in setting up charging stations across the country. As per the Bureau of Energy Efficiency (BEE), 9,113 public EV charging stations were operational in the country with 15,493 EV chargers, as of July 31, 2023. It is expected that India will require 46,397 charging stations to meet its 2030 electrification vision.
Diversification
Automakers are now ensuring to diversify electric vehicle offerings. As a result, the electrification of vehicles is not just limited to compact cars and sedans. Over the next ten years, the industry will witness
diversification of EV offerings, and we will see SUVs, trucks and even commercial fleets will undergo the electrification transition. This will cater to a wider range of consumers’ preferences and needs.
Global collaborations
The electric vehicle market is competitive as both traditional automakers and newer players are vying for market share. This competition is driving innovation and pushing companies to invest in R&D to stay ahead of the curve. As the industry grows, global collaboration will become commonplace as automotive players will associate with tech companies, battery manufacturers and the government to accelerate the electric mobility transition. Such partnerships will lead to cross-industry innovations and will help overcome challenges like charging infrastructure, battery production, regulatory issues, etc.
To sum up
The government has ambitious targets to achieve 30% electrification of the country’s vehicle fleet by 2030. To achieve this goal, the government has introduced several incentives and policies to boost the growth of the EV industry. Additionally, the FY24 Union Budget also supported the production of EVs and promoted embracing changing technologies.
In the next decade, electric vehicles are expected to become mainstream and will be vital in reducing our reliance on fossil fuels. India’s electric vehicle market is poised for significant growth and its future certainly is progressive. With the government’s support, increasing awareness of sustainability, rising demand leading to mass adoption and technological advancements, EVs will be the new norm in the transportation market rather than just being a choice or an exception!
