The “2021 India Electric Vehicle and Component Market Overview Report 2021-2030” was published by the India Energy Storage Alliance (IESA), the country’s leading industry alliance on Energy Storage, e-Mobility, and Green Hydrogen. As per the report, the Indian EV Market will see a CAGR of 49% by 2030.
The research examines the current market trend and predictions for electric vehicles (EV), as well as the need for EV batteries by various EV segments, in terms of revenue (INR Crore) and GWh potential.
The analysis of EV policies at the central and state levels is covered in detail in one chapter of the report. A section on the expansion of the EV accessory market in India is also included. This chapter provides a competitive analysis of the key market players and the supply chain for significant components. It covers important components like battery management systems, motors, controllers, and power electronics, among others.
According to the survey, India’s EV market recovered from the pandemic-caused slowdown in 2020 at one of the quickest rates. The majority of the 4,67,000+ annual EV sales in India in 2021 were made by the e-2Ws (50% market share), followed by the slow-moving e-3Ws; however, other segments also demonstrated a notable increase over the year.
Three different market projection scenarios are presented in the research report for the following ten years. The Indian EV market is anticipated to grow at a CAGR of 49% between 2021 and 2030 and reach annual sales of 17 million units by that time, with nearly 15 million of those expected to be electric two-wheelers, according to the report’s Business as Usual (BAU) scenario.
The annual battery demand is projected to reach 142 GWh by 2030, growing at a CAGR of 41%. The market has the same size as in 2021, at 6.5 GWh.
The report predicts that after 2024–2025, the Indian EV market will expand quickly as falling battery prices, improvements in EV technology, domestic production, and economies of scale will cause EVs’ initial costs to be comparable to those of ICE vehicles. Due to the high demand for e-rickshaws, lead-acid batteries maintained their dominance of the Indian EV ecosystem in 2021, accounting for 81% of the market.
Lithium-ion batteries have steadily increased their market share, and in 2021, the demand for these batteries surpassed the 1 GWh mark for the first time.
Lithium Iron Phosphate (LFP) is the preferred lithium-ion chemistry for e-3Ws and e-4Ws, while Nickel Manganese Cobalt (NMC) is chosen for e-2W and e-buses.
The government started the FAME II program, which has been extended until 2024, to investigate how to make EVs more affordable and appealing to end users. More than 1.8 million cars will have benefited from the program by December 2021. In a recent policy change, FAME Incentives for e-2Ws was also increased from INR 10,000/kWh to INR 15,000/kWh.
Many states have made their EV policies, which vary from state to state, public. To remove barriers and advance, the Central Government also issued directives and policies. The government has been working to boost demand in addition to securing supply through the introduction of numerous PLI programs for advanced chemistry cell (ACC) battery storage, automobiles and auto components, and semiconductors. The Phased Manufacturing Program for EVs imposes a minimal customs duty on imports to protect local manufacturers as well.
Key factors for the EV growth by 2030
- Rising Awareness
- Rising Fuel Prices
- New players with multiple options for consumers
- Technological Advancement
- Subsidy from both Central and State Govt
- Target for Net Zero by 2070
Click here to know about State EV Policies
The content of this article is taken from e-vehicle info