India to have 30% EVs by 2030 but only 5% to be electric cars: Study – Times of India

A recent study by Arthur D’Little titled ‘Unlocking India’s Electric Mobility Potential’ estimates that by the year 2030, more than 30 percent of vehicles in India will be electric. The study highlights that the EV industry will surpass 10 million vehicles by 2030. Adoption rate 30 percent across all categories. However, the study also underlines that passenger cars will account for only 5 percent of total EV sales.
Revealing more details, the study states that India will need around 800 GW of battery to be able to achieve 30 per cent EV adoption by 2030. To this end, the country is accelerating plans to manufacture lithium-ion cells, with an expected USD 2.3 billion in government subsidies and over USD 7.5 billion in investment potential.

In terms of investment, India’s EV industry is likely to attract a further foreign investment of around USD 20 billion by 2030, considering the foreign direct investment (FDI) of around USD 6 billion in 2021.
Regarding the low adoption of EVs in the passenger car segment, the study cited several factors including high cost of acquisition, lack of choice, expanding charging network, low consumer confidence mainly range concerns and recent events. Questions have been raised on EV safety.

“Despite the odds, India is one of the largest markets in Asia after only China and surprisingly ahead of Japan,” says Barnick Chitran Maitra, Managing Partner and CEO, India and South Asia, Arthur D’Little.
“We can build on this by acting to support product innovation, build reliable charging infrastructure, and provide subsidies to buyers and additional incentives to startups involved in battery R&D. If India 50 % achieves its actual EV potential of electrification, the 10th EV of every globally sold EV could be manufactured in India, making India a global EV powerhouse.”