EV Sales In India May Reach 27.2 Million Units By 2032, Up By 35 Percent CAGR

A report, “India Electric Vehicle Market Overview 2023″, by energy advisory, software, and services firm, Customized Energy Solutions, expects electric vehicle (EV) sales in India to grow at a compound annual growth rate (CAGR) of 35 percent, with annual volumes likely to touch 27.2 million units by 2032 and total EV sales in 2023 having reached 1.7 million.

The report attributes the upswing to the confluence of factors such as the availability of the USD 1.2 billion FAME-II subsidy, the USD 3.5 billion Production-Linked Incentive (PLI) scheme, and state governments” active support.

The report observed that the PLI scheme would facilitate the nurturing of the development of the EV supply chain, while states such as Tamil Nadu, Haryana, Andhra Pradesh, and Uttar Pradesh are leading the charge, providing incentives to encourage both EV and component manufacturing within their borders.

“The confluence of supportive policies, financial incentives, and a burgeoning EV infrastructure lay a robust foundation for the transformative journey ahead,” Rahul Walawalkar, Founder and President of India Energy Storage Alliance and President & MD of Customized Energy Solutions India, said.

“we see not only challenges but immense opportunities for innovation and growth as well,” Walawalkar added.

The report also flagged concerns regarding challenges such as the high cost of EVs, inadequate public charging infrastructure, the necessity for power grid upgrades, and the absence of subsidies in some segments, which may defer growth, according to the report.