India's EV Revolution Charging Toward 35% Sales by 2030

The electric vehicle (EV) movement is gaining momentum, and by FY30, EVs may account for 30-35 percent of yearly vehicle sales in India, although internal combustion engine (ICE) vehicles will continue to prevail on the roads, coexisting with EVs for many years ahead. India is embracing the EV trend, with adoption increasing from under 1 percent in 2019 to 7.4 percent by 2024.

"Given its low vehicle ownership and distinct growth factors, India has the opportunity to leapfrog, making EVs the primary car for many, similar to how it bypassed 3G in favor of 4G." The report by SBI Capital Markets (SBICAPS) predicted that by FY30, EVs might account for 30-35 percent of yearly sales.

Batteries and electronic drive systems account for 50 percent of an electric vehicle's expense, serving as important distinctions from internal combustion engines.

India's PLI for Advanced Chemistry Cell (ACC) seeks to tackle this issue. At present, Original equipment manufacturer (OEM) source 75 percent of their battery requirements externally, but backward integration is expected to reduce this to 50 percent by FY30, fueled by partnerships and joint ventures instead of solely organic initiatives, the report foresaw.

Roughly Rs. An estimated 500-600 billion in capital expenditure is anticipated to reach 100 GWh of EV battery capacity by 2030, with an additional Rs 200 billion needed to enhance public charging infrastructure to 90,000 chargers by FY30.

India's electric vehicle surge is supported by a network of incentives - a 5 percent GST versus 28 percent for most internal combustion engines, reduced road taxes in various states, FAME and PM E-DRIVE subsidies, and lower operating expenses using electricity instead of petroleum products due to a beneficial tax framework.