The growth in EV sales represents a substantial step towards broader adoption of electric mobility in India.A new report from KPMG in India and CII highlights the accelerating growth of India's electric vehicle (EV) market and outlines key strategies for continued expansion. The report, released Thursday, states that EV sales reached 1.2 million in FY24, achieving a 5% market share. It emphasises the importance of policy support, infrastructure development, and stakeholder collaboration in achieving India's ambitious EV adoption goals. The report identifies four crucial pillars for EV growth: physical, power, economic, and social infrastructure.
Current EV market scenario
India's EV market is experiencing rapid growth, fueled by factors such as supportive policies, improving cost parity with traditional vehicles, a thriving startup ecosystem, and advancements in technology. The country aims to achieve 30% EV market penetration by 2030.
The growth in EV sales represents a substantial step towards broader adoption of electric mobility in India. The report reinforces the transformative potential of the EV sector, not just for transportation, but also for the broader Indian economy. The emphasis on collaborative action and strategic infrastructure development will be crucial for realising the full potential of this emerging market. The targeted 30% EV penetration by 2030 aligns with the EV30@30 campaign and demonstrates India's commitment to a sustainable transportation future.
What does the report highlights?
The report emphasises the critical role of infrastructure and policy in supporting India's goal of a $5 trillion economy. It notes the success of states like Karnataka, Maharashtra, Delhi, and Kerala, which have over 1,000 charging stations and high EV penetration. The World Bank has found that focusing on infrastructure is four times more effective than offering demand incentives.
"The electric vehicle revolution marks the dawn of a new era for India - one defined by innovation, economic growth, and environmental stewardship. This is more than just a shift to zero-emission transportation; it's a systemic transformation of infrastructure, finance, technology, and mindsets," said Raghavan Vishwanathan, Partner-Automotive, KPMG in India.
4 pillars for accelerating EV adoption
The report's four key pillars for accelerating EV adoption address various aspects of the ecosystem. Physical infrastructure focuses on expanding charging networks and improving battery recycling. Power infrastructure emphasises managing demand and integrating renewable energy. Economic infrastructure involves ensuring affordable financing and optimised taxation. Social infrastructure focuses on raising stakeholder awareness and promoting education.
EVs are seen as a crucial part of India's commitment to transition to 100% zero-emission vehicles by 2040, a pledge made at COP26. The report underscores the need for collaboration among government bodies, private enterprises, and international partners to drive innovation and investment in the EV sector.
"By addressing infrastructure gaps, creating affordable pathways for consumers, and building societal trust in EVs, India can set a global benchmark for sustainable mobility, green growth, and inclusive prosperity," added Vishwanathan.
The report also highlights the significance of policy support and efficient decision-making processes in fostering collaboration. This collaboration is essential for the development of infrastructure that can keep pace with the growing demand for EVs.
"Right policy support and faster decision-making can help in fostering collaborations across stakeholders in the EV ecosystem including government bodies, private enterprises, and international partners which shall drive innovation and investment, requisite for development of infrastructure that keeps pace with the growing demand for EVs," according to the report.
