India’s electric vehicle market could be worth $206 billion (₹14,42,000 crore) in ten years, if India were to achieve its 2030 electric vehicle (EV) ambitions, an independent study released by the CEEW Centre for Energy Finance (CEEW-CEF) said.
The study has also estimated a cumulative investment need of $180 billion (₹12,50,000 crore) in vehicle production and charging infrastructure until 2030 to meet India’s EV ambition.
According to the study, the cumulative EV sales in all vehicle segments could cross over 100 million units by FY30 - 200 times its current market size. At the end of March 2020, the total number of registered electric vehicles in India stood at only half a million.
“Availability and affordability of capital for OEMs, battery manufacturers, charge point operators, and end consumers would be key to determining the pace, efficiency and cost of India’s transition to electric vehicles,” Vaibhav Pratap Singh, senior analyst at CEEW-CEF and lead author of the study, said.
“Consistent policy support would also be critical. The recent announcements by the government to set up EV kiosks across 69,000 petrol stations in the country and permit sales and registration of EVs without batteries can give a boost to the sector,” he added.
The study also estimates that realising India’s EV ambition would require an estimated annual battery capacity of 158 GWh by FY30. This presents a massive market opportunity for domestic manufacturers. Even if 50% of the battery manufacturing capacity were indigenous, investments would amount to as much as $6.1 billion (₹42,900 crore) by FY30.
Further, the cumulative investments required would exceed $12.3 billion (₹85,900 crore) in case of 100% indigenisation of battery manufacturing. The recently approved production-linked incentive (PLI) scheme for the automobile and battery manufacturing sectors could help enable the right ecosystem for indigenisation and job creation in the EV sector, it said.
It said India would also need a network of over 2.9 million public charging points by FY30, beyond the in-home charging points. This could create another massive market opportunity requiring cumulative investments of up to $2.9 billion (₹20,600 crore) until 2030.
