The EV industry in India experienced one of the quickest recoveries from the pandemic-induced slowdown in 2020, According to a report by India Energy Storage Alliance. Notably, the electric two-wheeler segment accounted for 50 per cent of the total over 4.67 lakh EV sales in the domestic markets. India's electric vehicle market is reportedly expected to expand at a compounded annual growth rate of 49 per cent between 2021-2030, with the segment's volumes set to cross annual sales of 17 million by 2030. According to a report by India Energy Storage Alliance (IESA), this projected growth is expected to be driven by factors such as rising fuel prices, entry of new players, advancement in EV technology, continued subsidy support from both the central and state governments as well as anticipated implementation of emission standards.
Moreover, the EV industry in India experienced one of the quickest recoveries from the pandemic-induced slowdown in 2020, the report observed. Notably, the electric two-wheeler segment accounted for 50 per cent of the total over 4.67 lakh EV sales in the domestic market followed by the low-speed e-three-wheelers in 2021, suggests the report.
The report further said that with a Business as Usual (BAU) scenario, the Indian EV market would expand at a CAGR of 49 per cent between 2021 and 2030 and is predicted to reach annual sales of 17 million units by that time, with almost 15 million of those projected to be electric two-wheelers.
Additionally, between 2021 and 2030, the yearly battery demand is expected to increase at a compounded annual growth rate (CAGR) of 41 per cent, reaching 142 GWh, as per the forecast.
The report highlighted that the market is of 6.5 GWh, just like in 2021 and added that the EV segment is anticipated to grow quickly after 2024–2025, as the initial cost of these vehicles are predicted to be comparable to those of internal combustion engine-powered vehicles on the back of falling battery prices, advancements in EV technology, domestic production and economies of scale.
It is noteworthy that lead-acid batteries continued to dominate the Indian EV ecosystem in 2021, accounting for 81 per cent of the market, due to the high demand for e-rickshaws, as per the report.
Moreover, the FAME II incentives scheme, launched by the government to look into ways to make EVs cheaper and attractive to the end-users and has now been extended to 2024, has benefited more than 1.8 million automobiles, IESA said in the report.
