The India Electric Car Market is projected to grow from USD 3.31 billion in 2025 to USD 14.79 billion by 2029, with a CAGR of 45.44% during the forecast period from 2025 to 2029.

Key Growth Drivers:

Government Initiatives and Policies: The Indian government's commitment to reducing carbon emissions and promoting sustainable mobility has led to the implementation of various initiatives. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme offers incentives for EV adoption, aiming to increase the share of electric vehicles in the country's transportation sector. Additionally, the reduction of the Goods and Services Tax (GST) on EVs from 12% to 5% further encourages consumers to consider electric alternatives.
Expansion of Charging Infrastructure: The growth of the EV market is closely tied to the availability of robust charging infrastructure. Efforts are underway to establish widespread charging networks across urban and rural areas. Public-private partnerships are playing a crucial role in setting up charging stations, with companies like Tata Power and SUN Mobility leading the charge. SUN Mobility, for instance, operates over 600 battery-swapping points across India, enhancing the convenience for EV users.
Rise of Domestic Manufacturing: To reduce dependency on imports and strengthen the local economy, India is focusing on boosting domestic EV manufacturing. The Production Linked Incentive (PLI) scheme offers financial incentives to manufacturers, encouraging them to set up production units within the country. This move not only aims to make EVs more affordable but also positions India as a global hub for EV production.
Technological Advancements: Continuous research and development have led to significant improvements in EV technology, including battery efficiency, vehicle range, and overall performance. These advancements are making electric vehicles more appealing to consumers and are expected to drive further adoption in the coming years.
Market Segmentation Insights:

Vehicle Types: The Indian EV market encompasses various vehicle types, including two-wheelers, three-wheelers, passenger cars, and commercial vehicles. Two-wheelers currently dominate the market due to their affordability and suitability for short-distance travel. However, passenger cars and commercial vehicles are gaining traction, supported by government incentives and growing consumer awareness.
Fuel Types: Battery Electric Vehicles (BEVs) are leading the market, driven by zero-emission capabilities and supportive policies. Hybrid Electric Vehicles (HEVs) are also witnessing growth, offering a transitional solution for consumers hesitant to switch to fully electric options.
Regional Highlights:

Maharashtra: The state leads in EV adoption, with the highest number of public charging stations and a target to achieve a 10% share of EVs in all new vehicle registrations by December 2025.
Uttar Pradesh: Actively advancing its EV industry through strategic policies and substantial investments, Uttar Pradesh aims to transition the transportation sector towards electric mobility and establish itself as a manufacturing hub for EVs and ancillary equipment. 
Industry Outlook:

The Indian EV market is moderately consolidated, with the top five companies holding 43.74% of the market share. Leading companies include Ampere Vehicles, Ather Energy, Okinawa Autotech, Ola Electric Mobility, and TVS Motor Company. Other key players are BYD India, Hero Electric Vehicles, Hyundai Motor India, JBM Auto, Mahindra & Mahindra, MG Motor India, Olectra Greentech, Switch Mobility (Ashok Leyland), Tata Motors, and Toyota Kirloskar Motor. 

The Indian EV market is poised for significant growth, driven by supportive government policies, technological advancements, and increasing consumer acceptance. As infrastructure and manufacturing capabilities continue to develop, India is set to become a global leader in electric mobility.

For more detailed insights, please refer to the full report by Mordor Intelligence.

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