India's EV market to hit annual sales of 17 million units by 2030, says report

The electric vehicle market in India is expected to increase at a compounded annual growth rate of 49 per cent between 2021 to 2030 while the EV segment's volume may cross annual sales of 17 million by 2030. As per a report by India Energy Storage Alliance (IESA), this growth in the EV segment may happen due to various reasons such as increase in fuel prices, entry of new manufacturers, development and advancement of technology related to EVs, subsidies from central as well as state governments along with an anticipated implementation of an emission standard.

The report stated the electric two-wheeler segment following slow growth in the pandemic has taken a significant jump accounting for 50 per cent of the total over 4.67 lakh EV sales in the domestic market followed by sales of three-wheeled electric vehicles which is experiencing a slow trend upwards. With the stated amount of growth which the EV segment may experience in the coming years, the report added of the 17 million annual sales of EVs, almost 15 million are expected to be electric two-wheelers.

Between 2021 and 2030, the yearly demand for batteries is also expected to grow at a compounded annual growth rate of 41 per cent, touching 142 GWh based on the forecast. Though the market share of lithium-ion batteries has been increasing steadily and last year, for the first time, the demand for these batteries exceeded the 1 GWh threshold.

However, the report mentioned lead-acid batteries continued to dominate the Indian EV ecosystem in 2021, accounting for 81 per cent of the market, due to the high demand for e-rickshaws. It also added that in addition to lithium-ion batteries, Lithium Iron Phosphate (LFP) is the chosen option for e-three-wheelers and four-wheelers, whereas Nickel Manganese Cobalt (NMC) is the preferred option for electric two-wheelers and electric buses.

(With inputs from PTI)