India Energy Storage Alliance (IESA), India’s leading industry alliance on Energy Storage, e-Mobility, and Green Hydrogen has released its 3rd annual edition of the “2021 India Electric Vehicle and Component Market Overview Report 2021-2030”.
According to the survey, the EV industry in India experienced one of the quickest recoveries from the pandemic-induced slowdown in 2020. The e-2Ws (50 per cent market share), followed by the low-speed e-3Ws, accounted for most of the 4,67,000+ annual EV sales in India in 2021
According to the report’s Business as Usual (BAU) scenario, the Indian EV market would expand at a CAGR of 49 per cent between 2021 and 2030 and is predicted to reach annual sales of 17 million units by that time, with almost 15 million of those projected to be electric two-wheelers.
Between 2021 and 2030, the yearly battery demand is anticipated to increase at a CAGR of 41 per cent reaching 142 GWh. The current market size is around 6.5 GWh.
According to the report, the Indian EV market is anticipated to grow quickly after 2024–2025 as the initial costs of EVs are predicted to be comparable to those of ICE vehicles because to falling battery prices, advancements in EV technology, domestic production, sand economies of scale.
Click here for more information on the report
Lead-acid batteries continued to dominate the Indian EV ecosystem in 2021, accounting for 81% of the market; this is due to the high demand for e-rickshaws. The market share of lithium-ion batteries has been steadily growing, and in 2021, for the first time, the demand for these batteries exceeded the 1 GWh threshold. Additionally, among lithium-ion chemistries, Lithium Iron Phosphate (LFP) is chosen option for e-3Ws and e-4Ws whereas Nickel Manganese Cobalt (NMC) is the preferred option for e-2W and e-buses.
According to the report, the main factors propelling the EV market’s expansion in the current decade will be
- Rising consumer awareness
- Rising fuel prices
- Commitments from fleet aggregators and corporations
- Entry of new players
- Advancements in EV technology
- Continued subsidy support from both the Central and State governments
- Anticipated implementation of strict emission standards (CAFÉ norms from 2022)
Also read: IESA To Host India Energy Storage Week 2022
Featured photograph (source: Tata Group) is for representation only
