By Priya Singh
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Updated On: 03-Feb-2024 07:20 AM
In the recently presented interim budget for 2024-2025, Finance Minister Nirmala Sitharaman emphasized the government's commitment to expanding and strengthening the e-vehicle ecosystem.
PM Modi, along with Union Ministers Piyush Goyal, Hardeep Singh Puri, and Nitin Gadkari, attended the Bharat Mobility Global Expo 2024 event.
Prime Minister Narendra Modi, speaking at the Bharat Mobility Global Expo 2024, expressed confidence in India becoming the world's third-largest economy. He emphasized the country's progress in various areas and mentioned the upcoming general elections.
PM Modi, along with Union Ministers Piyush Goyal, Hardeep Singh Puri, and Nitin Gadkari, attended the event. Modi stated that India is set to achieve the third position in the global economy during the third term of his government.
He highlighted the government's efforts that have lifted around 25 crore people out of poverty in the last decade. PM Modi outlined India's goal of becoming a 'developed' country by 2047 and stressed the significant role of the mobility sector in achieving this objective.
Aggressive Targets Set by Niti Aayog
Public policy think tank Niti Aayog has established a bold target of achieving 30% electric vehicle penetration in India by 2030, expecting the market to witness an impressive compound annual growth rate of 49% between 2022 and 2030.
Also Read: Bharat Mobility Expo 2024: Bajaj Auto Showcases Diverse Range of Vehicles
Fastest-Growing Electric Vehicle Market
India, currently the third-largest automobile market globally, is rapidly becoming the fastest-growing electric vehicle market. With electric vehicle penetration at 3-5%, the country witnessed a 49% YoY growth in sales in 2023, reaching 1.53 lakh units, with two-wheelers leading the charge.
A new middle class has emerged in our country, with increased income and aspirations. The middle-class threshold has expanded, leading to growth in the mobility sector. Before 2014, 12 crore cars were sold in India, but since then, over 21 crore cars have been sold. Electric car sales have also increased from 2,000 crore annually before 2014 to 12 lakh per year now.
The Prime Minister highlighted a 60% rise in passenger car sales and a 70% increase in two-wheeler sales since 2014.
Government Initiatives Boost Adoption
The Indian government is actively promoting early-stage electric vehicle adoption through schemes like the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME). Additionally, a production-linked incentive scheme for advanced chemistry cell manufacturing is expected to drive down battery costs.
Interim Budget Focuses on E-Vehicle Ecosystem
In the recently presented interim budget for 2024-2025, Finance Minister Nirmala Sitharaman emphasized the government's commitment to expanding and strengthening the e-vehicle ecosystem. Measures include support for manufacturing, charging infrastructure, and encouraging the adoption of e-buses in public transport networks.
With electric vehicle sales surging and proactive government measures in place, India is poised to witness a green revolution in its transportation sector, potentially claiming the title of the world's largest electric vehicle market by 2030.