India's EV industry experienced one of the quickest recoveries from the pandemic-induced slowdown in 2020.
India’s electric vehicle (EV) industry experienced one of the quickest recoveries from the pandemic-induced slowdown in 2020, according to a report by the India Energy Storage Alliance (IESA). Notably, the electric two-wheeler segment accounted for 50% of the more than 4.67 lakh EV sales in the domestic markets, followed by the low-speed e-three-wheelers in 2021.
India’s EV market is expected to expand at a compounded annual growth rate (CAGR) of 49% between 2021-2030, with the segment’s volumes set to cross annual sales of 17 million units by 2030. IESA attributes this projected growth to rising fuel prices, entry of new players, advancement in EV technology, continued subsidy support from both the central and state governments, as well as anticipated implementation of emission standards.
Between 2021 and 2030, IESA forecasts the yearly battery demand to reach 142GWh, increasing at a CAGR of 41% during the forecast period. Lead-acid batteries continued to dominate the Indian EV ecosystem in 2021, accounting for 81% of the market, due to the high demand for e-rickshaws, according to IESA.
Launched by the government to look into ways to make EVs cheaper and attractive to the end-users, the FAME II scheme has now been extended to 2024, has already benefited more than 1.8 million automobiles.