By FY30, the overall mobility market in India is expected to reach US$ 1.2T, with electric mobility accounting for about 20% of this market.
India faces critical air quality challenges, with 14 cities among the top 20 most polluted globally and ranks third worldwide in greenhouse gas emissions per square kilometer. This highlights the necessity for advanced clean mobility initiatives to improve air quality and reduce emissions.
As India stands on the cusp of a transportation revolution, the focus on electric mobility is driving transformative changes across the nation. With the government and private sectors investing heavily in sustainable transportation, India is emerging as a leader in the electric mobility movement. The “ELECTRIFY30” (Electric Mobility Report) by Praxis Global Alliance highlights India’s significant advancements in electric vehicles (EVs) and the development of supporting ecosystems. The report highlights how clean mobility solutions paving the way for a more efficient and sustainable future.
The report explores India’s dynamic push towards electrifying India’s transportation network, highlighting key policies and strategies that support the adoption of EVs and the development of essential infrastructure. It also provides a detailed analysis of the EV landscape, showcasing significant opportunities for EV adoption in the two wheeler (2W) and three-wheeler (3W) segments, alongside substantial growth potential in passenger and commercial vehicle categories.
Amidst the ongoing challenges faced by the global EV market due to geopolitical shifts and fluctuating manufacturing costs, India remains a beacon of resilience. The country’s strategic positioning, coupled with favourable domestic conditions and a robust policy framework, creates an environment conducive to rapid electric mobility adoption. India’s emphasis on developing an integrated electric mobility ecosystem not only boosts EV adoption but also fosters innovation in supporting industries, such as charging infrastructure, battery technology, and sustainable supply chains.
Key Highlights:
- Product and services ecosystem:
– Product opportunity: Electric mobility product opportunity is projected to hit ~US$ 94B, with overall penetration rising significantly to ~23% by FY30. This includes passenger vehicles such as 2W, 4W, commercial vehicles, and components for OEMs and aftermarket, as well as charging solutions.
– Services opportunity: Electric mobility services opportunity in India stood at ~US$ 26B in FY24, with more than 80% of the opportunity lying in transportation and logistics services. The electric mobility
service opportunity is expected to grow to US$ 144B by FY30 growing at a CAGR of ~33%. The services ecosystem covers services such as E-Buses, E-Cabs, E3W, etc.
- India’s EV infrastructure: India has an EV-to-charging station ratio of 9:1, and to achieve the globally acceptable standard ratio of 4:1, the government has taken multiple initiatives, including significant allocations in FAME II (over US$ 120M) and reducing GST rates on EV chargers.
- Technological advancements: Rapid improvements in technology, including range, speed, and fast charging, are making electric vehicles more appealing and cost-effective. The software solutions opportunity is estimated at US$ 0.4B in FY24, expected to grow at a CAGR of 27% reaching US$ 1.6B by FY30.
- Emerging opportunities: The report anticipates additional multi-billion-dollar opportunities in areas such as:
– India as a manufacturing hub
– Connected and autonomous vehicles
– Mobility as a Service (MaaS)
– Air taxis
– Used electric cars
– Battery recycling
– EV Exports
– Sustainability and carbon credits
- Investment and growth drivers: There is significant FDI and private equity investment in this sector, which is a key growth driver. The report also highlights aspects of supportive government policies, and changing consumer perceptions are facilitating increased adoption.
This comprehensive report delves into various crucial aspects of the electric mobility landscape in India. It begins with an overview of the global climate crisis and the necessity for a transition to EVs. It further explores the electric mobility ecosystem, highlighting opportunities and challenges in the adoption of EVs. Detailed analyses of electric mobility products and services, including commercial and passenger vehicles, charging infrastructure, and EV financing, provide a thorough understanding of the market. The report also examines the regulatory landscape, consumer perceptions, and technological trends influencing the EV sector. Additionally, it identifies new business opportunities and strategic choices for stakeholders, reviews recent investments, and outlines key implications for various players in the ecosystem. This report serves as a vital resource for comprehending the current state and future potential of clean mobility in India, offering actionable insights for industry participants.
The full Report can be accessed here
Commenting on the launch of the report, Aryaman Tandon, Managing Partner – Mobility, Energy and Transportation, Praxis Global Alliance, said “India’s journey towards electrifying its transportation sector is not just a leap towards a sustainable future but also a significant economic opportunity. Our report highlights that with strategic policies and investments, the electric mobility ecosystem can become a US$ 250+B market by FY30. At Praxis Global Alliance, we are committed to providing insights that drive this transformation and support India’s vision for a cleaner, greener tomorrow.”
