Development of the electric vehicle market in India

1. Indian government's supportive policies for the development of electric vehicles

In order to support the popularization of electric vehicles, the Indian government has launched a number of plans. Among them, the FAME (Fast Adoption and Manufacturing of Electric and Hybrid Vehicles) plan is one of the most important driving forces. The plan was launched in 2015 and is currently in its second phase (FAME II), with plans to invest 100 billion rupees (about US$1.2 billion) by March 2024. In addition, the Indian government is also working with private companies to accelerate the construction of charging stations.
      In terms of taxation, India currently taxes electric vehicles at only 5%, while hybrid vehicles are taxed at 43%, slightly lower than gasoline vehicles at 48%.

2. Sales of electric vehicles in India

Supported by a series of government policies, the Indian electric vehicle market has shown a rapid growth trend in recent years. According to data released by the Federation of Automobile Dealers Associations of India, India's electric vehicle sales will be about 90,000 units in fiscal 2023-2024 (April 1, 2023 to March 31, 2024), nearly doubling from the previous fiscal year. According to a report released by Canalys, Tata Motors sold 34,000 electric vehicles in the first half of 2023, accounting for 72% of the market share in India. The most popular Tata Nexon is priced from 1.32 million rupees (about 114,800 yuan).
In addition, data from research firm Counterpoint Research shows that India's electric vehicle sales will almost double in 2023, and are expected to grow by 66% in 2024, reaching 4% of total passenger car sales. By 2030, electric vehicles in India are expected to account for nearly one-third of the Indian market.

3. Laying of charging piles in India

As the infrastructure for charging electric vehicles, the laying of charging piles plays a vital role in the development of electric vehicles. According to data released last year, there were only 350 charging stations in India in 2017, and by the end of 2022, India had only 2,700 public charging stations and 5,500 charging piles.
     As of February 2024, India has made significant progress in electric vehicle (EV) charging infrastructure. There are 12,146 public EV charging stations in operation across the country, mainly in Delhi, Gujarat and Maharashtra.
      Indian research institutions pointed out that India needs to invest US$3.2 billion to build about 63,000 chargers in the next five years and 230,000 chargers in the next 10 years to meet the development needs of electric vehicles.

In summary, with the support of government policies, the growth of market demand, and the innovation and application of technology in the future, the penetration rate of chargers in India is expected to increase significantly, and there is still room for development in the Indian electric vehicle market.