Market research company, P&S Intelligence released a report Wednesday predicting the sales volume of electric vehicles in India to be on track to hit 376,000 units by 2030, rising from 37,792 units in 2022 at a 33.3% CAGR.
The rise is mainly attributed to the expanding construction of manufacturing facilities, a boost in foreign direct investment, and a robust effort to enhance the charging infrastructure.
Uttar Pradesh dominated the market in 2022, due in large part to the area’s large client base and huge number of suppliers. The implementation of the Uttar Pradesh EV Manufacturing and Mobility Policy 2022 further fueled the adoption of electric cars for both personal and commercial use.
Maharashtra is expected to witness a similar growth pattern during the forecast period. The state government in 2021 implemented a comprehensive policy which provided monetary credits and early-bird incentives.
Over the past few months, cities like Mumbai, Nagpur, and Pune have experienced remarkable EV sales within Maharashtra. Among the newly registered electric vehicles, SUVs with a range of 300 km on a single charge have been particularly popular, offering versatility for both intercity and intracity travel.
The personal user segment continues to dominate the market and is expected to maintain its lead until 2030, primarily driven by the increasing affordability of these vehicles and a rise in disposable income. Looking at specific product categories, SUVs are anticipated to experience the most significant growth rate, estimated at approximately 36%, in the coming years. This surge can be attributed to the escalating disposable income and a growing demand for premium cars.