A cumulative investment of over $180 billion (around Rs 12.5 trillion) in vehicle production and charging infrastructure would be required until 2030 to meet India’s electric vehicle (EV) ambitions, according to a recent study.
The independent study, released on Tuesday by the CEEW Centre for Energy Finance (CEEW-CEF) said that India’s electric vehicle market could be worth nearly $ 206 billion (around Rs 14.24 trillion) in the coming decade, if
India were to achieve its 2030 EV ambitions.
The cumulative EV sales in all vehicle segments could cross over 100 million units by FY30, 200 times its current market size. At the end of March 2020, the total number of registered EVs in India stood at only half a million.
Vaibhav Pratap Singh, senior analyst at CEEW-CEF, said that availability and affordability of capital for OEMs, battery manufacturers, charge point operators, and end consumers would be key to determining the pace, efficiency and cost of India’s transition to EVs.
Consistent policy support would also be critical. The recent announcements by the government to set up EV kiosks across 69,000 petrol stations in the country and permit sales and registration of EVs without batteries can give a boost to the sector, Singh added.
The study estimates that realising India’s EV ambitions would require an estimated annual battery capacity of 158 GWh by FY30.