EV Sales to Grow 90 Crore Units in India By 2027

Massive investment and promotion in the EV industry make it one of the ideal markets for future requirements. The annual sales of EVs are expected to cross 90 crore units by 2027. Indian Private Equity and Venture Capital Association, in collaboration with EY and IndusLaw, stated the same in its latest report. It presented this report titled "Electrifying Indian Mobility", highlighting the growth of electric vehicles in India.

The electric vehicle sector is in its initial state and gaining immense traction. Last year, the EV industry saw 3,30,000 registration which was 168% higher than in 2020. Two wheelers sales increased by 48%, whereas the three-wheeler segment registered 47% growth. The e-rickshaw category takes the major share of the three-wheeler segment, which is 45%. The report also states 0.36% shares for e-buses.

In this report, Uttar Pradesh is on the top for EV registrations and carries a 20% share in the country. After that, Karnataka and Tamil Nadu are in second and third positions. Karnataka, Telangana, Maharashtra, Rajasthan, and Tamil Nadu are the states that have 67% registration shares for two-wheelers. In three-wheeler EV registration, Uttar Pradesh, Bihar, Assam, and Delhi carry 75% shares in total sales. However, Maharashtra is in the lead for the highest number of passenger vehicle sales.

Indian Private Equity and Venture Capital Association has also mentioned the challenges of the EV industry in its report. It has been mentioned that a lack of charging infrastructure is one of the biggest challenges for the EV sector. At present, there are 1,742 charging stations across India. However, it's predicated on having 1,00,000 charging stations by 2027 to meet the charging requirements of 14 lakh EVs on the road.

The Electric Vehicle industry has gained $6 billion investment in 2021, and it's expected to grow to $20 billion by 2030. This report states that PE/VC investors in India are increasing investment from $181 million to $1,718 million. While talking about the growth of the EV industry in India also required to note some crucial points. The EV industry is full of two-wheelers and three-wheelers. The study by Arthur D Little 'Unlocking India's Electric Mobility Potential' states that 30 % of vehicles in India will be EV by 2030. This study also states that passenger cars will only carry 5% of total EV proceeds. The statistics for e-buses are even lower and stand at 0.36%.

This report has also highlighted that current Indian government policies, VC investments, and other factors will create opportunities for entrepreneurs and investors. And the EV sector will create over one crore direct and five crore indirect jobs by 2030. The craze for electric vehicles in India is increasing every day. Many leading players like Tata, Mahindra, and other startups and big giants have already launched their EVs. Most brands are planning to develop next-generation electric vehicles to lead this booming sector. However, there are many challenges that this industry will face. But with the latest infrastructure technology, massive investment, and innovative approach, the EV sector will boom to generate massive job opportunities for professionals.