Electric vehicle sales in India will exceed 9 million units by 2027
Uttar Pradesh leads in electric vehicle registrations in the country with around 20%, followed by Karnataka and Tamil Nadu.
According to the Electrifying Indian Mobility report released by the Indian Private Equity and Venture Capital Association (IVCA) in collaboration with EY and IndusLaw, sales of electric vehicles in India are expected to surpass 9 million units by 2027.
It is said that 1.7 billion US dollars was invested in the electric vehicle sector in 2021. This amount reached 666 million US dollars in 2022 so far. The electric vehicle industry is expected to create more than 10 million direct jobs and 50 million indirect jobs by 2030.
Uttar Pradesh leads in electric vehicle registrations in the country with around 20%, followed by Karnataka and Tamil Nadu. Of all 2-wheeler registrations, around 67% come from Karnataka, Tamil Nadu, Maharashtra, Telangana and Rajasthan. The majority of 3-wheeler registrations are in Uttar Pradesh, Bihar, Assam and Delhi, which collectively account for 75% of total sales. Maharashtra, however, boasts of the highest sales of passenger vehicles with 3,700 units.
As of CY2021, EVs accounted for 1.1% of total vehicle sales and are expected to account for 39% of total auto sales by CY2027, growing at around 68% CAGR over the next 5 years.
The lack of charging infrastructure is one of the biggest challenges for the electric vehicle sector. Currently, there are only 1,742 charging stations in the country. This number is expected to increase to 100,000 units by 2027 to meet growing demand.
The report also highlights best practices for electric vehicles, the current Indian political environment and investment opportunities in India for investors and entrepreneurs.