The sales volume of the Indian electric car market is on track to hitting 376,000 units by 2030, rising from 37,792 units in 2022 at a 33.3% CAGR, as per P&S Intelligence.

This is primarily owing to the growing construction of manufacturing plants, increasing foreign direct investment, and strong push to improve the charging infrastructure.

Due to Reducing Battery Prices, BEVs Outsell All Other Variants

• With a share of about 88%, the BEV category held the largest share in 2022, and the same situation is predicted to sustain its position in the years to come. This is due to the growing preference for EVs over ICE vehicles, decreasing battery prices, and accessibility of several BEV models.
• Based on product, the category of SUVs is predicted to register the highest growth rate, of about 36%, in the years to come. This is due to the increasing disposable income and growing requirement for premium cars.
• Under the battery segment, the LFP category holds the largest market share, and it will continue to do so owing to the lower costs and longer life of LFP batteries.
• Moreover, the >201 Ah battery capacity category accounts for the larger market share, and it is predicted to achieve the faster growth in the coming years. This is owing to the preference of consumers for cars with a longer range.
• The category of personal users leads the market, and it is predicted to stay on this path till 230 because of the growing affordability of such cars and surging disposable income.

Most Sales of Electric Cars Take Place in Uttar Pradesh

Due to a large client base and a huge number of suppliers along the whole EV supply chain, Uttar Pradesh dominated the market in 2022. The Uttar Pradesh EV Manufacturing and Mobility Policy 2022 would help drive the sale of electric cars for both personal and commercial purposes.

Similarly, Maharashtra is expected to witness a significant growth rate during the forecast period. In July 2021, to boost the demand for EVs, the state government introduced a comprehensive policy, under which a USD 2,029.1 (INR 1.5 lakh) incentive is provided and consumers are also eligible for early-bird incentives.