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India Electric Vehicle (EV) Market Size, Share & Industry Analysis, By Platform {Two Wheeler, Three Wheeler, Four Wheeler – By Vehicle Type (Passenger cars and Commercial Vehicles) and By Propulsion Type (Battery Electric Vehicle (BEV), and Hybrid Electric Vehicle (HEV))}, and Regional Forecast, 2024-2032

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI106623



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The India electric vehicle (EV) market size was valued at USD 8.03 billion in 2023. The market is projected to grow from USD 23.38 billion in 2024 to USD 117.78 billion by 2032, exhibiting a CAGR of 22.4% during the forecast period.

The Indian automobile industry ranked fifth largest globally and is expected to become the third largest by 2030 as the demand for electric vehicles is growing tremendously due to population rise. So dependence on conventional energy resources is not suitable as India imports nearly 80% of its crude oil requirements. Moreover, NITI Aayog aims to achieve 70% penetration of EVs in all types by 2030, indenting to attain net zero carbon emissions by 2070. According to the Ministry of Heavy Industries, around 0.52 million EVs were registered in India in the last three years.

India's electric vehicles recorded strong growth in 2023, supported by the government's implementation of favorable policies and programs. Uttar Pradesh held the maximum share in EV sales in 2023, India. The total units sold across all segments reached 2,77,837 followed by Karnataka with 1,52,324 units &Tamil Nadu with 90,241 units. Uttar Pradesh led the three-wheeler segment, while Karnataka and Maharashtra led the two-wheeler and four-wheeler segments. For instance, Mahindra & Mahindra also plans to launch 16 BEV, 8 each in the SUV and light commercial vehicle segment by 2027. The COVID-19 pandemic was significantly challenging for electric vehicle manufacturers in India. Temporarily closed manufacturing facilities disrupted the supply chain, and the shortage of raw materials greatly affected the growth of this industry; the semiconductors crisis adversely affected the production of these vehicles in India.

India Electric Vehicle (EV) Market Trends

Rising Demand for Electric Micro-mobility in the Region is propelling the Market Growth

The rising demand and adoption of electric micro-mobility vehicles such as electric two-wheelers and electric three-wheelers is an ongoing trend in the market. Indian market is highly price-sensitive, and the majority of the Indian populace prefers two-wheelers for their daily transport due to rapidly growing traffic congestion. Therefore, in India low cost of electric two-wheelers and three-wheelers compared to four-wheelers, coupled with the high suitability of two-wheelers to Indian road traffic conditions, is anticipated to boost the adoption of electric two-wheelers and three-wheelers during the forecast period.

For instance, the cost of electric two-wheelers in India is nearly USD 600 to USD 3,755, which is significantly lower than the cost of electric four-wheelers. Some of India's most popular two-wheeler models include Revolt RV 400, Tork Kratos, and others.

To satisfy the increasing demand, various domestic electric two-wheeler brands are also penetrating the market to grab revenue growth opportunities in rapidly growing automotive electrification in India.

Moreover, the Indian government's push toward e-mobility adoption by providing FAME India subsidies and inclining consumer preference towards electric micro-mobility is expected to boost the market in future years.

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India Electric Vehicle (EV) Market Growth Factors

Rising Fuel Prices to Boost the Market Growth during the Forecast Period

Surging fossil fuel prices in India are one of the major factors that are anticipated to drive the demand for electric vehicles in the region. The purchasing cost of fossil fuel-powered vehicles is lower than EVs. However, their operating cost is high due to surging gasoline and diesel prices. In contrast, the operating cost of electric type of vehicles is significantly less than that of fossil fuel-powered vehicles. Therefore, shifting consumer preference towards adopting electric vehicles as a response to rising fossil fuel prices is predicted to enhance the market's growth over the forecast period.

Additionally, the government’s focus on fighting climate change by tightening emission control norms and introducing scrapping policies for conventional vehicles is anticipated to drive market growth in years to come. Furthermore, automakers’ plans or targets to convert their conventional vehicle fleet into pure electric to grab early revenue growth opportunities in an emerging market are anticipated to positively influence the market.

Consistently Declining Cost of Electric Vehicle Battery to Drive Market Growth

Indian automotive market is price-sensitive; therefore, a consistent decline in the cost of lithium-ion batteries positively influences the market growth. An essential driver for EV adoption is battery cost reduction, thereby reducing the total cost of operation (TCO) parity and the high upfront costs of EVs in India. Battery costs have declined by around 85% over the last decadewhich has witnessed broader EV adoption in all vehicle categories. In addition, the battery pack prices fell to INR 139 per kilowatt hour in 2023, a 14% drop from INR 161/kWh in 2022. Prices of key battery metals, such as lithium, have fallen dramatically since January due to substantial growth in production capability across all parts of the battery value chain, from raw materials and components to battery cells and packs.


Safety Concerns among the Populace Regarding Fire Hazards are likely to Restrict the Market Growth Slightly

Penetration of electric vehicles is still low in India compared to other nations. The region's consumer awareness is also significantly low. Therefore, recent fire incidents in electric two-wheelers of the leading players such as Ola Electric, Pure EV, and Okinawa raised questions over the safety of using these vehicles. The government of India also investigated the EV models from these leading brands to find the root cause and those accountable for these safety lapses.

Subsequently, these players recalled their EV models to avoid further fire hazard possibilities. For instance, Ola Electric recalled nearly 1,441 units of its electric two-wheelers, and Okinawa also recalled 3,215 units of its electric scooter Praise Pro to fix battery-related issues. Moreover, Pure EV recalled nearly 2,000 units of its Epluto 7G and Etrance+ models. Furthermore, India's lack of a well-established EV ecosystem is one of the major obstacles to adopting electric vehicles in the region.

India Electric Vehicle (EV) Market Segmentation Analysis

By Platform Analysis

Rapid Demand for Two Wheeler in Urban Areas to Boost the Market Growth

Based on platform market is classified into two-wheeler, three-wheeler, and four-wheelers. The Four wheeler segment dominated the market in 2023 and is expected to dominate India electric vehicle market forecast period. It is also expected to dominate during the forecast period with a maximum market share. City commuters find it economical considering the range compared to (IC) Internal Combustion engines. Compared to two-wheelers, four-wheelers have lagers space for batteries, which results in a higher range on a single charge. This makes the segment dominant compared to the other two segments.

Two-wheelers witness significant dominance over four-wheelers and are the fastest-growing segment. Two-wheelers are highly used in India for transportation. Additionally, rising traffic congestion on Indian roads is influencing the populace to adopt micro-mobility for daily commutes and transportation. Moreover, the rising fuel prices and increasing awareness and availability of electric two-wheelers are anticipated to accelerate the penetration of electric two-wheelers in the Indian market. According to VAHAN, the electric two-wheeler market has seen a significant sales increase of 34.42% in the third quarter of Fiscal Year 2024 (Q3 FY 24) compared to the preceding quarter (Q2 FY 24), indicating a strong growth in the EV sector.

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By Vehicle Type Analysis

Comfort and Driving Range Offered By Passenger Vehicles Make the Segment Dominant in the Market

By vehicle type market is classified into passenger cars and commercial vehicles. Passenger cars accounted highest India electric vehicle market share in 2023. It is also dominant in the market and the fastest-growing segment. Passenger cars are in greater demand due to the availability of varied options, comfort, and luxury they provide with clean emissions. Considering the increasing trend of buying passenger EVS. Commercial vehicles also do a prominent rise during 2024 – 2032.

For instance, in August 2022, Tata Motors, India's leading automotive manufacturer, joined with the State Bank of India to offer (e-DFS) Electronic Dealer Finance solutions to its authorized passenger EV dealers. This contract would go a long way toward promoting EV culture and adopting EV’s in India. It will be part of the country's national electric mobility mission plan.

 By Propulsion Type Analysis

BEV Is Dominating the Market Owing to the Increased Efficiency and Zero Emission

Based on propulsion type, the market is classified as battery electric vehicles (BEV) and hybrid electric vehicles (HEV). Battery Electric Vehicles, called BEVs, are completely electric vehicles with rechargeable batteries and no conventional gasoline engine. All energy to propel the vehicle is received from the battery pack, which is recharged from the grid. The BEVs use electricity stored in a battery pack to power an electric motor and rotate the wheels. When batteries are depleted, they are recharged using grid electricity from a dedicated charging unit or wall socket.

Hyundai Kona, MG ZS-EV, and Tata Nexon are complete EV examples of BEVs in India. The BEV is dominant in 2023 and expected to be dominant during the forecast period. It also exhibits the fastest-growing segment compared to others. BEV purely utilize an electric battery to power up the vehicle. Therefore, government focus and initiatives to ban fossil fuel-powered vehicles in the near future are influencing the populace to adopt pure BEVs for long-duration use. Additionally, declining battery prices and low operating costs of BEVs are anticipated to accelerate their penetration in this industry shortly. The Hybrid Electric Vehicle (HEV) segment also accounted for growth from 2023 to 2032. HEV is an ideal segment between pure EV and IC engines. The BEV are pure EVs without any gasoline-powered engines.

In August 2022, Toyota plans to focus on producing low-cost hybrid cars in developing countries. Toyota plans to sell inexpensive hybrid vehicles to the general public to take advantage of the growing demand for automobiles in developing nations; its first target will be the Indian market. To secure technology exchange and low-cost manufacturing, Toyota will rely on its cooperation with Suzuki.

List of Key Companies in India Electric Vehicle (EV) Market

Reasonably Priced Products and Easy Availability for Customers Makes TATA Motors Dominant in Electric Vehicles Market

TATA Motors was established in 1945 and is headquartered in Mumbai, India. It has a presence in 3000 locations in 500 cities in India. Tata Motors is a global automobile manufacturer. The company produces cars, utility vehicles, buses, trucks, and defense vehicles. It also manufactures engines for marine & industrial applications, aggregates such as axles, and transmissions for commercial vehicles. The company’s two EV models, Nexon and Tigor, have the largest sales in India. The company has the maximum market share. TATA has 10 Manufacturing facilities and 2 R&D / engineering and design centers in India. They sold 694,159 Vehicles and generated USD 11 billion in Revenue in India.


  • Ola Electric (India)

  • TVs Motors (India)

  • Bajaj Auto Limited (India)

  • Ather Energy (India)

  • Hero MotoCorp Limited (India)

  • Greaves Electric Mobility Private Limited (India)

  • Mahindra & Mahindra Limited (India)

  • Piaggio Vehicles Pvt. Ltd. (India)

  • TI Clean Mobility Private Limited (India)

  • Euler Motors (India)

  • Omega Seiki Mobility (India)

  • Altigreen (India)

  • Saera Electric Auto (India)

  • Citylife Electric Vehicles (India)

  • Tata Motors Limited (India)

  • MG Motors (U.K.)

  • Hyundai (South Korea)

  • BMW Group (Germany)

  • BYD (China)



  • In January 2024, Mahindra & Mahindra Ltd. introduced three new variants – EC Pro (34.5kWh battery, 3.3 kW AC Charger), EL Pro (34.5 kWh battery, 7.2 kW AC charger), and EL Pro (39.4 kWh battery, 7.2 kW AC charger). The new variant is equipped with a 26.04cm infotainment system and a 26.04cm digital instrument cluster, complementing the sophisticated dual-tone interiors with premium and modern dashboards.

  • In August 2023, Mahindra & Mahindra Ltd. introduced its new EV brands (XUV and BE) in the United Kingdom last year. The company has now announced that it will launch five new electric SUVs in India by 2026. These upcoming products will be based on Mahindra’s state-of-the-art INGLO EV platform.

  • In July 2023, The Kia announced that it would launch the next generation Carnival premium MPV and the EV9 electric SUV in India in the next two years. The company plans to launch three new models in the country out, two of which will be electric vehicles by 2025. The company offers EV6 as its only car in India.

  • In January 2022, Hero Electric signed a strategic contract with Mahindra Group. Under this partnership, Mahindra will manufacture two of Hero Electric’s most popular electric scooters – the Optima and NYX – at its Pithampur plant in Madhya Pradesh. The Mahindra Group has been pioneering electric three- and four-wheelers for many years while driving the transition to EV across the consumer and B2B segment.

  • In January 2022, Bajaj Auto announced the launch of a new EV production unit in India, which can manufacture 5 lakh EVs per year at total capacity. The new Bajaj Chetak EV will be built with localized components to reduce dependence on imported parts. The new Chetak could launch with an affordable price tag compared to the current Chetak.


The research report provides a detailed India electric vehicle market analysis and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

An Infographic Representation of India Electric Vehicle Market

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Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 22.4% from 2024 to 2032


Value (USD Billion)


By Platform

  • Two Wheeler

  • Three Wheeler

  • Four Wheeler

Four Wheeler By Vehicle Type

  • Passenger Cars

  • Commercial Vehicles

 By Four Wheeler By Propulsion Type

  • (BEV) Battery Electric Vehicle

  • (HEV) Hybrid Electric Vehicle

Frequently Asked Questions

Fortune Business Insights says the market was valued at USD 8.03 billion in 2023 and is projected to reach USD 117.78 billion by 2032.

The market is expected to register a CAGR of 22.4% during the forecast period 2024-2032.

A rapid increase in demand for Two Wheeler in urban areas has made the segment grow the fastest.

Tata Motors dominates the domestic Electric Vehicle market

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