The domestic electric vehicle industry will cross sales of 10 million vehicles by 2030, with an overall adoption rate of more than 30 per cent across different vehicle categories, says a study. According to a study by Arthur D Little released on Thursday, EV adoption for passenger vehicles is likely to be just 10 per cent by the end of the period, amounting to a strikingly small 5 per cent of total EV sales.
The study titled, ‘Unlocking India’s electric mobility potential’ noted that to attain more than 30 per cent EV adoption, India will require approximately 800 GWh of batteries by 2030. To meet this rising demand, India is accelerating plans to manufacture Lithium-ion cells within the country, anticipating USD 2.3 billion in government subsidies and more than USD 7.5 billion in investment potential, it said.
In terms of investment, given Foreign Direct Investment (FDI) inflow of nearly USD 6 billion in 2021, India’s EV industry could attract further foreign investments of about USD 20 billion by 2030, to fuel the country’s economic growth and help achieve required scale in this industry, as per the study.
“Despite the obstacles, India is one of the largest markets for EVs in Asia behind only China and surprisingly, ahead of Japan.
“We can build on this position by acting to support product innovation, create reliable charging infrastructure, and provide subsidies to buyers and additional incentives to startups involved in battery R&D, among others,” said Barnik Chitran Maitra, Managing Partner and CEO, India & South Asia at Arthur D Little.