TL;DR
India's EV market is entering an accelerated growth phase, with strong two and three-wheeler adoption, but faces critical challenges in scaling charging infrastructure and ensuring grid resilience.
India's electric vehicle (EV) market is progressing from an early adoption phase to a crucial 'take-off' stage, as highlighted by Ashim Sharma, Senior Partner and Business Unit Head at Nomura Research Institute. Despite this positive momentum and accelerated adoption across various segments, passenger EV penetration remains below 5 percent. Sharma predicts a stronger EV uptake in the coming years, primarily fueled by increased demand for two- and three-wheelers, coupled with enhanced government backing for buses and commercial vehicles.
However, the rapid scaling of EV adoption faces significant hurdles, notably in charging infrastructure and grid resilience. These bottlenecks are critical and necessitate substantial upgrades in localized power networks to effectively support future EV demand. Industry leaders and policymakers at the fifth Global Electrification Mobility Summit (GEMS) echoed these sentiments, emphasizing the need for robust charging infrastructure, strengthened domestic manufacturing, and cohesive policy coordination across various sectors.
India's decarbonization efforts are not solely reliant on EVs; a multi-technology approach, including hybrids, CNG, and flex fuels, is also being pursued to cater to diverse use cases and consumer preferences. Despite the challenges, the market shows strong acceptance, with EV registrations nearing 2 million units in FY24-25, predominantly driven by two-wheelers.
