EV market to be a $206 billion opportunity for India by 2030

CEEW Centre for Energy Finance has revealed in a new study that electric vehicles will be a $206 billion opportunity for India by 2030. To achieve this the country will need an estimated annual battery capacity of 158 GWh by FY30.

The study also estimates a cumulative investment need of over $180 billion (Rs 12,50,000 crore) in vehicle production and charging infrastructure until 2030 to meet India’s EV ambition. India’s target to bring 25% of electric vehicles on road by 2030 stipulated by NITI Aayog-government’s primary think tank.

EV market to be a $206 billion opportunity

It states that 70 per cent of all commercial cars, 30 per cent of private cars, 40 per cent of buses, and 80 per cent of two-wheeler (2W) and three-wheeler (3W) sales would be electric by the end of this new decade. CEEW-CEF study says that the sales of the electric vehicles in all segments will reach to over 100 million units by FY30-200 times its current market size of just half a million as on March 2020.

Vaibhav Pratap Singh, Senior Analyst at CEEW-CEF says “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,”

“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.”

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The study estimates that the ambition will require an estimated annual battery capacity of 158 GWh by FY30 which provides a huge market opportunity for domestic manufacturers.

The investments need will go to $12.3 billion (Rs 85,900 crore) in case of 100 per cent indigenisation of battery manufacturing and the same will cost as much as $6.1 billion (Rs 42,900 crore) for 50 per cent of the battery manufacturing capacity. 

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