India is the fifth largest car market in the world and has the potential to become one of the top three in the near future – with about 400 million customers in need of mobility solutions by the year 2030. That is one side of the coin. The other side is that the country needs a transportation revolution. The current trajectory of adding ever more cars running on expensive, imported fuel and cluttering already overcrowded cities suffering from infrastructure bottlenecks and intense air pollution is unfeasible. India’s cities will choke. A transportation revolution will have many components – better ‘walkability’, public transportation, railways, roads – and better cars. Many of these ‘better cars’ will likely be electric.
Insights from the report
India’s roads are bursting at their seams with more than 210 million cars, motorcycles, 3-wheelers, and trucks. Over the past five years, the number of vehicles grew by as much as 23% cumulatively, just short of growth in China.
The future of India is definitely electric. Long term cost benefits, lowered pollution and a strong government thrust will drive the transition to EVs. And I think, India will see a large-scale transition to EVs as early as 2025.
Kunwer Sachdev, Managing Director of Su-Kam Power Systems Limited
By 2030, as many as 40% of new vehicles sold in India, approximately 24 million, could be battery powered. The number of EVs sold in India in 2030 would thus surpass the total number of vehicles sold in India in 2016, which was 22 million.