Market Size of india electric car Industry
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Study Period | 2017 - 2030 |
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Base Year For Estimation | 2023 |
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Market Size (2024) | USD 2.56 Billion |
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Market Size (2030) | USD 17.66 Billion |
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CAGR (2024 - 2030) | 37.95 % |
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Market Concentration | Medium |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
India Electric Car Market Analysis
The India Electric Car Market size is estimated at 2.56 billion USD in 2024, and is expected to reach 17.66 billion USD by 2030, growing at a CAGR of 37.95% during the forecast period (2024-2030).
2.56 Billion
Market Size in 2024 (USD)
17.66 Billion
Market Size in 2030 (USD)
88.47 %
CAGR (2017-2023)
37.95 %
CAGR (2024-2030)
Largest Segment by Vehicle Body Type
81.39 %
value share, Sports Utility Vehicle, 2023
SUVs dominate due to their spaciousness, higher seating capacity, versatility in urban and rural areas, and increasing consumer preference for comfortable and robust vehicles.
Fastest-growing Segment by Vehicle Body Type
75.93 %
Projected CAGR, Hatchback, 2024-2030
Hatchbacks are the fastest-growing due to their compact size, affordability, and suitability for urban driving, making them a popular choice among Indian consumers looking for practical EVs.
Largest Segment by Fuel Category
80.71 %
value share, BEV, 2023
BEVs dominate due to increased consumer awareness, government incentives for zero-emission vehicles, and rapid advancements in electric vehicle technology.
Fastest-growing Segment by Fuel Category
88.20 %
Projected CAGR, FCEV, 2024-2030
FCEVs are growing rapidly due to advancements in hydrogen fuel cell technology, increased investment in hydrogen infrastructure, and the government's push for zero-emission vehicles.
Leading Market Player
33.29 %
market share, Tata Motors Limited, 2023
Tata Motors is the leading player in the Indian electric car market. The company has the most number of model offerings in the market to meet the consumer demand.
India is witnessing a burgeoning interest in electric mobility, evident from the evolving vehicle configurations that align with consumer demands and driving conditions
- Electric hatchbacks serve as the entry point to India's EV market, primarily attracting urban commuters seeking compact, affordable, and efficient vehicles. Their appeal is bolstered by their lower price tag relative to other electric models, making them especially enticing for first-time EV buyers and those with city-centric driving habits. Government initiatives like FAME India, which offer subsidies and tax benefits, further amplify the attractiveness of electric hatchbacks as cost-effective and eco-friendly mobility options.
- Electric sedans and SUVs are gaining traction in India's EV market, offering a mix of luxury, spaciousness, and performance. These models cater to consumers who prioritize premium features, extended range, and robust performance. The introduction of electric SUVs has garnered particular attention, given the existing popularity of SUVs in the Indian market. Consumers are increasingly drawn to electric SUVs not only for their versatility and space but also for the status they confer. Additionally, the allure of lower operating costs and reduced environmental impact further bolsters their appeal.
- While MPVs constitute a smaller segment of the electric car market, they hold significant growth potential, especially among consumers with larger families or those seeking vehicles for group travel or commercial purposes. Electric MPVs offer the advantages of spaciousness and efficiency, although their adoption is currently hindered by factors such as higher upfront costs and a developing charging infrastructure.
Understand The Key Trends Shaping This Market
India Electric Car Industry Segmentation
Passenger Cars are covered as segments by Vehicle Configuration. BEV, FCEV, HEV, PHEV are covered as segments by Fuel Category.
- Electric hatchbacks serve as the entry point to India's EV market, primarily attracting urban commuters seeking compact, affordable, and efficient vehicles. Their appeal is bolstered by their lower price tag relative to other electric models, making them especially enticing for first-time EV buyers and those with city-centric driving habits. Government initiatives like FAME India, which offer subsidies and tax benefits, further amplify the attractiveness of electric hatchbacks as cost-effective and eco-friendly mobility options.
- Electric sedans and SUVs are gaining traction in India's EV market, offering a mix of luxury, spaciousness, and performance. These models cater to consumers who prioritize premium features, extended range, and robust performance. The introduction of electric SUVs has garnered particular attention, given the existing popularity of SUVs in the Indian market. Consumers are increasingly drawn to electric SUVs not only for their versatility and space but also for the status they confer. Additionally, the allure of lower operating costs and reduced environmental impact further bolsters their appeal.
- While MPVs constitute a smaller segment of the electric car market, they hold significant growth potential, especially among consumers with larger families or those seeking vehicles for group travel or commercial purposes. Electric MPVs offer the advantages of spaciousness and efficiency, although their adoption is currently hindered by factors such as higher upfront costs and a developing charging infrastructure.
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Need A Different Region Or Segment?
India Electric Car Market Size Summary
The India Electric Car Market is experiencing significant growth, driven by increasing consumer demand for eco-friendly and cost-effective transportation solutions. Electric hatchbacks are particularly popular, appealing to urban commuters due to their affordability and efficiency. Government initiatives like FAME India, which offers subsidies and tax benefits, have further enhanced the attractiveness of these vehicles. Meanwhile, electric sedans and SUVs are gaining traction among consumers seeking luxury and performance, with SUVs being especially appealing due to their spaciousness and status. Although electric MPVs represent a smaller segment, they hold potential for growth, particularly among larger families and commercial users, despite challenges such as higher upfront costs and developing charging infrastructure.
The Indian government's commitment to reducing pollution and promoting electric vehicles is evident through various policies and initiatives. The Fame India scheme and its subsequent phase have significantly boosted EV sales, while the Vehicle Scrappage Policy aims to phase out older, polluting vehicles, encouraging a shift towards electric cars. State governments are also transitioning to electric buses to reduce carbon emissions and improve air quality. These efforts are part of a broader strategy to electrify a substantial portion of the vehicle fleet by 2030. The market is moderately consolidated, with major players like BYD India, Hyundai, Mahindra & Mahindra, MG Motor, and Tata Motors leading the charge in this evolving landscape.
India Electric Car Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Vehicle Configuration
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1.1.1 Passenger Cars
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1.1.1.1 Hatchback
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1.1.1.2 Multi-purpose Vehicle
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1.1.1.3 Sedan
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1.1.1.4 Sports Utility Vehicle
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1.2 Fuel Category
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1.2.1 BEV
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1.2.2 FCEV
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1.2.3 HEV
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1.2.4 PHEV
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India Electric Car Market Size FAQs
How big is the India Electric Car Market?
The India Electric Car Market size is expected to reach USD 2.56 billion in 2024 and grow at a CAGR of 37.95% to reach USD 17.66 billion by 2030.
What is the current India Electric Car Market size?
In 2024, the India Electric Car Market size is expected to reach USD 2.56 billion.
