EV industry in India: A positive disruptor

Abstract

India’s electric vehicle (EV) industry is rapidly evolving and emerging as a significant disruptor in the automotive sector. With the Indian government's ambitious target of achieving 30% electric vehicle adoption by 2030, alongside increasing environmental consciousness and technological advancements, the industry is poised for substantial growth. In the first half of 2024, the Indian EV market expanded by 155% compared to the same period in 2023, according to the Society of Manufacturers of Electric Vehicles (SMEV), indicating strong momentum in the sector. The Indian government’s support has been crucial in this expansion, as evidenced by the 2024 Union Budget allocation of INR 8,000 crore (approximately USD 1 billion) towards subsidies for EV manufacturers and buyers and INR 2,500 crore (approximately USD 310 million) for the development of charging infrastructure. Despite these positive strides, the industry faces several critical challenges that must be addressed to sustain growth and achieve widespread adoption.