India’s electric vehicles (EVs) market is expected to grow to one-crore units’ annual sales by 2030 and create five-crore jobs, Nitin Gadkari, Minister of Road Transport and Highways, said here on Tuesday.
Speaking at the 64th annual convention of Society of Indian Automobile Manufacturers (SIAM), the Minister said as carbon footprint and pollution levels are rising in the country, the automobile industry has to think seriously and look for more alternative fuel powered vehicles.
“We need to think this seriously on this issue (pollution). In 2014, diesel passenger vehicle share was 53 per cent. Now, as of 2023, the new diesel car sales share was only 18 per cent. So, it is my request to all of you (auto industry), ask for whatever the industry needs; the core important things – proven technology, economic liability, availability of raw materials and marketability of the finished products,” he said, indicating that the government will assist the industry to access what they require to transition to alternative fuel powered vehicles.
Gadkari said he was confident that market for these vehicles will only increase in the future and expressed hope that India will become the number one automotive manufacturing hub in the world in the future.
He further said that the Indian EV market potential is likely to touch ₹20 lakh crore by 2030 across the entire ecosystem, with an estimated EV finance market size of ₹4 lakh crore.
“Today, about 30-lakh EVs are registered in India,” Gadkari said, adding that electric two-wheelers accounted for 56 per cent of total sales, and in 2023-24, there was a 45 per cent increase in sales of EVs, and 400 start-ups in electric two-wheelers have already started manufacturing.
lithium-ion batteries
The Minister also said the cost of lithium-ion batteries is expected to come down further thereby helping in affordability and thus fuelling mass adoption.
“The good thing is the lithium-ion manufacturing is coming up. Adani, Tata, Maruti, LG, and Samsung, they are all coming in this business... you take the example of semiconductors, the government adopted such a good policy because of which after two-three years, we will be the number one in the manufacturing of semiconductors in the world. Same goes for mobile manufacturing,” he said.
He also expressed confidence that with the government’s efforts to encourage battery cell manufacturing in India through PLI scheme, the country will be in a position to export lithium-ion battery to different parts of the world going forward, as many companies are setting up their cell manufacturing facilities in India.