Piyush Goyal stated that India is gaining global recognition for its rapid advancements in technologies such as advanced energy storage, e-mobility, and green hydrogen.
Minister of Commerce and Industry Piyush Goyal highlighted India’s growing status in the electric vehicle (EV) sector during the Bharat Mobility Global Expo 2024 inauguration. He emphasized that India is on a fast track to innovation in fields such as advanced energy storage, e-mobility, and green hydrogen. According to Goyal, India’s efforts in these areas are gathering international acclaim, positioning the country to potentially emerge as the world’s premier electric vehicle market by the year 2030.
This optimistic outlook is backed by ambitious targets set by Niti Aayog, the public policy think tank, which aims for a 30% EV penetration in India by 2030. Market analyses forecast a robust compound annual growth rate of 49% for the EV sector from 2022 to 2030. Presently, India ranks as the third-largest automobile market globally, with EV penetration rates currently between 3-5%, marking it as the fastest-growing electric vehicle market. The year 2023 witnessed a remarkable 49% year-on-year surge in electric vehicle sales, totalling 1.53 lakh units, predominantly led by two-wheeler segments. To date, it is estimated that around 7.6 lakh electric vehicles have been registered in India.
The Indian government is actively facilitating this early-stage adoption of electric vehicles through various incentives, including the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme, which provides demand subsidies. Furthermore, a production-linked incentive scheme for the manufacturing of advanced chemistry cells aims to lower battery costs, enhancing the economic viability of electric vehicles.
Adding to the government’s support, Finance Minister Nirmala Sitharaman, in the interim budget for the fiscal year 2024-2025, pledged to expand and accelerate the electric vehicle ecosystem. This commitment involves increasing manufacturing capacities and charging infrastructure, as well as promoting the greater use of e-buses in public transport networks through a payment security mechanism, showcasing a holistic approach to fostering sustainable transportation solutions.