India's EV Market to Surge 12x to 30.4 Million Units by 2032: Report

India's electric vehicles (EV) market is projected to surge 12x to 30.4 million units by 2032 under the high-growth NEV (National EV Target) scenario. The market displays strong growth momentum, with annual sales rising from 2.0 million units in 2024 to 2.6 million units in 2025, representing an approximate 26 per cent sales increase, according to an India Energy Storage Alliance (IESA) report, prepared by Customized Energy Solutions.Higher fuel prices strengthen electric vehicle cost competitiveness, while expanding sports utility vehicle offerings and a wave of new product launches enhance consumer appeal and market visibility.EV Market Share and Segment DominanceAs per the report, EVs accounted for approximately 9.5 per cent of total vehicle sales in India in 2025, up from 8.1 per cent in 2024. This shift underscores the market's continued structural transition toward electrification.In 2025, electric two-wheelers (E2W) continued to dominate sales at 60.1 per cent, with electric three-wheelers (E3W) at 31.6 per cent. Together, these two categories accounted for over 91 per cent of the approximately 2.5 million total EV units sold.According to the report, electric four-wheelers (E4W) grew their share to 7.7 per cent, reflecting accelerating consumer adoption of electric passenger vehicles. Meanwhile, buses held 0.2 per cent and trucks held 0.4 per cent of total sales, supported by public procurement programs and fleet operator commitments.Surging Battery Demand and Policy Impact"In parallel, battery demand is expected to scale sharply, driven both by rising EV adoption and increasing average battery pack sizes, with total demand growing from 19 GWh to 362 GWh over the same period," the report added."The widening gap between BAU and NEV scenarios post-2029 underscores that India's EV trajectory will ultimately be determined by the strength of policy support, the pace of infrastructure buildout, and the momentum in local manufacturing."Battery Consumption BreakdownAs per the report, total battery demand in 2025 reached approximately 19 GWh, which is a significant jump from 13 GWh in 2024. This reflects both volume growth and rising average pack sizes across segments.In a notable structural shift, four-wheelers now lead battery consumption at 40 per cent, followed by three-wheelers at 27 per cent and two-wheelers at 23 per cent. Buses grew to 7.8 per cent of total battery demand, which is disproportionately high relative to their unit sales share owing to the large pack sizes deployed in electric bus fleets. Trucks registered a 1.9 per cent battery demand footprint as electric light, medium, and heavy goods vehicle adoption gradually scales.Component Market Growth and OpportunitiesIndia's electric vehicle component market was valued at Rs 41,000 crore in 2025. It is projected to reach Rs 3,02,000 crore by 2032 under the Business-as-Usual (BAU) scenario, reflecting a compound annual growth rate of approximately 38 per cent.Battery packs dominate the 2025 mix at 52 per cent, followed by motors at 22 per cent, inverters at 12 per cent, battery management systems at 11 per cent, and DC-DC converters at 3 per cent.Localization Challenges and Future OutlookThe report noted that "India's motor and controller localization remains at 30-40%, inverter supply chains are heavily import-dependent, and BMS hardware localization lags well behind software capability.""The Rs 2,61,000 Cr incremental market being created between 2025 and 2032 will disproportionately reward players who establish domestic manufacturing depth in power electronics and drivetrain integration ahead of the demand inflection," the report mentioned. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India's EV Market to Surge 12x to 30.4 Million Units by 2032: Report

Synopsis

According to an IESA report, India's EV market is projected to surge 12x to 30.4 million units by 2032. Annual sales are expected to hit 2.6 million units in 2025, a 26% rise, with E2W and E3W accounting for over 91% of sales.

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