According to the Electrifying Indian Mobility report published the Indian Private Equity and Venture Capital Association (IVCA) in collaboration with EY and IndusLaw, electric vehicles sales in India are expected to cross 9 million units by 2027.
It is said that US$ 1.7 billion was invested in the EV sector in 2021. This amount has reached US$ 666 million in 2022 so far. The EV industry is likely to create more than 10 million direct jobs and 50 million indirect jobs by 2030.
Uttar Pradesh tops EV registrations in the country with around 20%, followed by Karnataka and Tamil Nadu. Of the overall 2-wheeler registrations, about 67% are from Karnataka, Tamil Nadu, Maharashtra, Telangana, and Rajasthan. Majority of the 3-wheeler registrations are in Uttar Pradesh, Bihar, Assam, and Delhi, which collectively account for 75% of total sales. Maharashtra, however, boasts of the highest sales of passenger vehicles with 3,700 units.
As of CY2021, electric vehicles accounted for 1.1% of total vehicle sales and is expected to account for 39% of total automotive sales by CY2027 growing at about 68% CAGR over the next 5 years.
Lack of charging infrastructure is one of the biggest challenges for the EV sector. Currently, there are only 1,742 charging stations in the country. This number is expected to increase to 100,000 units by 2027 to accommodate the increasing demand.
The report also highlights the best practices for EVs, the current Indian policy environment and investment opportunities in India for both investors and entrepreneurs.