Indian EV Market Set to Surge

India’s electric vehicle (EV) market is on a trajectory to reach one crore (10 million) units in annual sales by 2030, potentially creating up to five crore (50 million) jobs, according to Union Minister for Road Transport and Highways, Nitin Gadkari. This ambitious projection was made during his address at the 64th annual convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi.

Growth and Job Creation

The anticipated growth in the EV sector is expected to have a significant impact on the Indian job market. Gadkari’s statement underscores the transformative potential of the EV industry, not only in terms of sales volume but also in employment opportunities. With the EV market expanding rapidly, the sector is poised to become a major driver of economic growth and job creation in the country.

Affordable Lithium-Ion Batteries

A key factor driving this growth is the anticipated decrease in the cost of lithium-ion batteries. Gadkari highlighted that the reduction in battery costs will make EVs more affordable for the average consumer, thereby accelerating mass adoption. He emphasized that major players such as Adani, Tata, Maruti, LG, and Samsung are entering the lithium-ion battery manufacturing space, which will contribute to this cost reduction.

Shifting Focus to Alternative Fuels

As concerns about rising carbon emissions and pollution levels continue, the Indian automobile industry is being urged to explore and adopt alternative fuel technologies. Gadkari noted that the share of diesel passenger vehicles has dropped significantly from 53% in 2014 to 18% in 2023. This shift reflects the growing demand for cleaner alternatives and the industry’s response to environmental challenges.

Government Support and Industry Collaboration

The Indian government is committed to supporting the automotive industry’s transition to alternative fuel vehicles. Gadkari assured that the government would assist the industry in accessing essential resources, including proven technology, economic viability, raw materials, and market opportunities. This support aims to facilitate a smoother transition to greener and more sustainable transportation solutions.

Market Potential and Financial Outlook

The Indian EV market’s potential is expected to reach ₹20 lakh crore (approximately $250 billion) by 2030, encompassing the entire ecosystem of EVs, infrastructure, and related services. Additionally, the EV finance market is projected to grow to ₹4 lakh crore (around $50 billion). Gadkari’s remarks reflect a robust outlook for the EV sector, driven by both domestic growth and increasing financial investment.

Current State and Future Prospects

Currently, around 30 lakh (3 million) EVs are registered in India, with electric two-wheelers making up 56% of total sales. The sector has seen a 45% increase in EV sales in the 2023-24 period, and over 400 start-ups are engaged in manufacturing electric two-wheelers. This vibrant start-up ecosystem is contributing to the rapid expansion of the EV market.

Advancements in Battery Manufacturing

Gadkari also spoke about the government’s efforts to promote battery cell manufacturing through the Production Linked Incentive (PLI) scheme. This initiative is expected to bolster India’s position as a leading global manufacturer of lithium-ion batteries. The rise in domestic battery production is anticipated to enable India to export these batteries to various international markets, further strengthening the country’s role in the global EV supply chain.

Looking Ahead

With significant investments in technology, infrastructure, and manufacturing, India is on track to become a major player in the global automotive industry. The expected growth in the EV market, combined with government support and advancements in battery technology, positions India as a key player in the transition to a more sustainable and eco-friendly transportation future.