The Indian passenger car market is booming, projected to reach US$ 54.84 billion by 2027 from US$ 32.70 billion in 2021, showing a CAGR of over 9%. Two-wheelers and passenger cars held significant market shares of 75.04% and 21.38% respectively in FY25.
India's EV market is experiencing rapid growth. Sales hit 100,000 units in CY24, a significant increase from CY23. A study by CEEW Centre for Energy Finance estimates a US$ 206 billion opportunity for EVs in India by 2030, requiring US$ 180 billion in investment.
India aims to increase vehicle exports fivefold between 2016 and 2026. In FY23, total automobile exports reached 47,61,487 units, with two-wheeler exports at 36,52,122 units.
The Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-27. The global EV market was estimated at approximately US$ 250 billion in 2021 and by 2028, it is projected to grow by 5 times to US$ 1,318 billion.
Two-wheelers and passenger cars accounted for 75.04% and 21.38% of market shares, respectively, in FY25*. In FY25 (April-September), the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was 1,56,22,388 units.
India accomplished a significant milestone, with the sale of 1,00,000 EVs in CY24 compared to 82,688 in CY23.
A study by CEEW Centre for Energy Finance recognised a US$ 206 billion opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion investment in vehicle manufacturing and charging infrastructure.
According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance industry is likely to reach US$ 50 billion (Rs. 3.7 lakh crore) by 2030.
A report by the India Energy Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36% until 2026. In addition, the projection for the EV battery market is expected to expand at a CAGR of 30% during the same period.
Indian automotive industry is targeting to increase the export of vehicles by five times during 2016-26. In FY23, total automobile exports from India stood at 47,61,487. Indian automobile exports of two-wheelers stood at 36,52,122 in FY23.
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