India is accelerating its transition to electric vehicles (EVs), with projections indicating a significant surge in EV adoption over the next decade. According to a recent report by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES), the country’s EV stock has grown from 0.35 million in 2019 to 4.4 million in 2024. The report forecasts that this number could reach 123 million by 2032 under the National EV Targets (NEV) scenario, aligning with the government’s EV30@30 ambition, which aims for 30% EV penetration by 2030.
The rapid growth in EV adoption is largely attributed to government initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme. This program offers demand-side incentives and capital subsidies for public charging infrastructure, making EVs more accessible to consumers. In 2024, electric two- and three-wheelers accounted for over 93% of India’s EVs, while electric four-wheelers made up 6%, highlighting the dominance of smaller EVs in the market.
To support this growth, the Indian government has implemented policies to encourage both domestic and foreign investment in the EV sector. For instance, India announced it would lower import taxes on electric vehicles for carmakers investing at least $500 million and starting domestic manufacturing within three years. This move aims to boost EV adoption to 30% of total car sales by 2030, up from 2% in the previous year.
Major Indian automakers are also playing a crucial role in this transition. Tata Motors, which commands over 80% of India’s electric car market, plans to have 10 electric models in its portfolio over the next few years, with EVs making up 25% of its total car sales by 2025. Mahindra and Mahindra expects electric models to constitute 20%-30% of its SUV sales by March 2027 … Hyundai Motor India plans to introduce five EV models … expanding its charging stations to 439 … . Maruti Suzuki India aims for six EV models by 203 … , with the first battery EV expected by late 2024. New entrants like JSW Group are investing heavily in EV and battery manufacturing projects, further bolstering the industry’s growth.
As India continues to invest in EV infrastructure and implement supportive policies, the country is well on its way to becoming a global leader in electric mobility. The projected growth to 123 million electric vehicles by 2032 underscores the nation’s commitment to sustainable transportation and reducing its carbon footprint.
