The global electric vehicle (EV) market, valued at USD 255 billion in 2023, is expected to experience an expansion, projected to reach $2,108 billion by 2033, according to an Axis Securities report.
This growth, with a compound annual growth rate (CAGR) of 23 per cent from 2024 to 2033, reflects the increasing global demand for sustainable mobility solutions.
Forecasts predict that India's EV market could reach annual volumes of 10 million units by 2033, a substantial increase from the 1.7 million units recorded in FY24.This transformation will be driven by a combination of favourable government policies, the introduction of new products, declining bill of materials (BoM) costs, and rapid technological advancements.
India is anticipated to be at the forefront of this EV revolution. Over the next decade, significant EV adoption is expected across key vehicle segments, including three-wheelers (3W), two-wheelers (2W), electric buses, and passenger vehicles.
The segment is expected to grow further as infrastructure improves and more affordable models enter the market.
A total of ₹10,900 crore in subsidies has been allocated over the next two years to promote the adoption of electric two-wheelers, three-wheelers, and buses.
The scheme aims to support the sale of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. Additionally, each electric two-wheeler will receive a subsidy of ₹10,000, while electric three-wheelers will receive ₹50,000 until March 2025.
To encourage the adoption of electric trucks and ambulances, Rs 500 crore has been earmarked for e-trucks, with incentives linked to scrappage certificates from approved scrapping centres.
Another ₹500 crore has been set aside for the deployment of e-ambulances, including hybrids, underscoring the government's commitment to modernising emergency services.
A critical aspect of promoting EV adoption is the development of charging infrastructure. To address this need, the government has committed ₹2,000 crore to establish electric vehicle public charging stations across the country.
This outlay will support the installation of 22,100 fast chargers for electric four-wheelers, 1,800 chargers for electric buses, and 48,400 chargers for electric two-wheelers and three-wheelers.
In a bid to make electric vehicles more affordable, the Indian government has also introduced favourable tax rates for EVs. Electric cars are taxed at just 5 per cent, compared to 28 per cent on hybrid vehicles and a steep 49 per cent on internal combustion engine (ICE) vehicles.