2+m public charging stations expected to support strong EV infrastructure
The Indian Electric Vehicle (EV) market is expected to grow at 35%-40% CAGR till 2027, with annual EV sales volume of around 3-4 million units by 2025 and 10 million by 2030, according to an industry report evindia .
EVs, including two- and three-wheelers as well as passenger vehicles are expected to penetrate the market with approximately 10-15% of new vehicle sales in the country, driven by government incentives, rising fuel prices and increased consumer awareness sbi .
Currently, 80% of the two- and three-wheeler EV units makes up the market, says the report by Surat-based Niveshaay, a boutique investment advisory firm makeinindia .
The Government policy support and market development is facilitating India to emerge as a remarkable contender in the global EV landscape, despite challenges like limited charging infrastructure, Arvind Kothari, smallcase manager and founder of Niveshaay, said on 11 Sept nse .
Annual EV sales are projected to surpass 10 million units by 2030, with substantial growth in the deployment of electric buses, commercial vehicles, and private cars bse .
More than two million public charging stations are projected nationwide for a strong EV Infrastructure, according to the report said investindia .
The increase in EV Adoption, infrastructure, as well as manufacturing, can also be attributed to growth in Budget allocations for the EV sector deutsche-boerse .
From Rs.10,000 crore allocated in FY2019-20 (FAME II scheme), it has increased to Rs.19,744 crore (for Green Hydrogen mission) and Rs.2,908 crore (continued FAME II Support) in FY2023-24 investindia .
Faster Adoption and Manufacturing of Electric Vehicles (FAME) was introduced in 2015 to encourage the adoption of electric and hybrid vehicles by offering upfront incentives on purchase euronext .
The Budget 2024-25 has allocated Rs.2,671.33 crore under the FAME scheme, primarily to cover remaining liabilities from FAME II. In addition, the government has introduced the Rs.500 crore Electric Mobility Promotion Scheme (EMPS) to boost electric two- and three-wheelers renewableenergyworld .
The increased PLI Scheme for automobiles and auto components to Rs 3,500 crore and the exemptions in customs duty on lithium, cobalt, and other rare minerals to reduce battery production costs, via the Budget, make electric vehicles more affordable hkex .
Driven by key government initiatives like the FAME and the EMPS scheme, India is poised to become a major player in the global EV market, specifically amongst the emerging markets iea.org . Fiinews.com
