New Delhi: The universal electric vehicle (EV) market, evaluated at USD 255 billion in 2023, is anticipated to undergo an extension, planned to hit USD 2,108 billion by 2033, according to a report.
With a compound annual growth rate (CAGR) of 23% between 2024 and 2033, this rise is indicative of the rising need for sustainable mobility solutions around the world.
By 2033, the EV market in India is expected to grow significantly from the 1.7 million units sold in FY24 to an estimated 10 million units annually.
The introduction of new products, falling bill of materials (BoM) costs, rapid technical breakthroughs, and favorable government regulations will all contribute to this shift.
It is expected that India would lead this EV revolution. Significant EV adoption is anticipated over the next ten years in a number of important vehicle categories, including electric buses, passenger cars, two-wheelers, and three-wheelers (3W, 2W, and 3W).
As more reasonably priced devices hit the market and infrastructure gets better, the industry is predicted to continue growing.
Over the following two years, a total of Rs 10,900 crore in subsidies have been set aside to encourage the use of electric buses, two-wheelers, and three-wheelers.
The program intends to facilitate the sales of 14,028 e-buses, 3.16 lakh e-3Ws, and 24.79 lakh e-2Ws. Until March 2025, an additional subsidy of Rs 10,000 would be given to each electric two-wheeler and Rs 50,000 to electric three-wheelers.
A sum of Rs 500 crore has been set aside for e-trucks, with incentives connected to scrappage certificates from authorized scrapping centers, in an effort to promote the use of electric trucks and ambulances.
To further demonstrate the government’s commitment to modernizing emergency services, an additional Rs 500 crore has been set aside for the deployment of e-ambulances, including hybrids.
The construction of infrastructure for charging EVs is a vital component of encouraging their adoption. The government has allocated Rs 2,000 crore to the establishment of public charging stations for electric vehicles throughout the nation in order to meet this need.
22,100 fast chargers for electric four-wheelers, 1,800 chargers for electric buses, and 48,400 chargers for electric two- and three-wheelers will all be installed with the help of this expenditure.
The Indian government also implemented favorable tax rates for electric cars (EVs) in an effort to lower the cost of these vehicles. The tax rate on electric automobiles is merely 5%, but the tax rates on hybrid cars and internal combustion engine (ICE) cars are much higher at 28% and 49%, respectively.
