In 2024, India’s electric vehicle sector has experienced significant growth with sales rising by 20.88 per cent to 1.39 million units. Primarily driven by technological advancement, this surge is also driven by growing consumer interest, and government incentives. Despite challenges, 2024 has shown promise and progress, setting the stage for a brighter future.
In the electric two-wheeler segment, adoption is steadily increasing, with sales reaching 18 million units. While, the Indian market offers a diverse range of options, including scooters, mopeds, and motorcycles, government initiatives promoting e-mobility, such as the expansion of charging stations, have played a key role in this growth. The shift in public demand towards EVs is driven by their cost-effectiveness, efficiency, and reduced fuel costs, making them an attractive choice for a wide demographic.
Declining Battery Prices
The decline in battery prices can be attributed to several key factors. Technological advancements have led to higher energy density, enabling batteries to store more energy using fewer and cheaper materials, thereby reducing production costs. The industry has also mitigated its reliance on costly raw materials like cobalt by adopting alternative solutions and optimising designs to minimise material usage. Furthermore, battery recycling has facilitated the recovery of valuable materials, contributing to cost savings. The emergence of solid-state batteries promises additional cost reductions, making energy storage solutions more affordable and accessible, and paving the way for a sustainable future.
Technological Changes in the Industry
Advancements in machine learning (ML) and artificial intelligence (AI) are transforming the riding experience. With features like personalised performance tuning, the system adapts braking, power deliver, and acceleration based on individual riding behaviour. Dynamic riding assistance provides real-time feedback, empowering riders to optimize battery current draw in response to changing road conditions. Simultaneously, predictive maintenance analyses usage patterns to forecast potential component failures, such as battery cell capacity depletion, ensuring safety and minimising repair needs.
AI integration in motorcycles is advancing alongside electric vehicle innovations. Inspired by ADAS and AVAS systems, engineers are equipping motorcycles with cameras, radars, and sensors to alert pedestrians. The AI system uses this data to prevent accidents through proactive measures like rider notifications, automatic braking, and throttle adjustments. Adaptive cruise control further enhances safety and efficiency by monitoring surrounding vehicles, assessing road conditions, predicting traffic flow, and suggesting alternative routes.
Evolving Consumer Sentiment and its Impact on Sales
India's electric two-wheeler (E2W) market is poised for significant growth, driven by shifting consumer sentiment and key factors. By 2030, E2W sales are expected to account for 60-70 per cent of new sales, fuelled by Gen Z's demand for tech-savvy features like ADAS and smart connectivity, increasing awareness of ecological sensitivity and sustainable mobility, lower operating costs, and widespread access to electricity with over 90 per cent of households connected to the grid. Additionally, growing adoption of decentralised power generation like rooftop solar has further bolstered electricity access. Considering all these factors, electric two-wheelers are expected to see robust growth in both urban and rural areas, offering convenience and high-quality rides.
Government Policies and Support
The EV industry is poised for rapid expansion by 2025, revolutionising transportation and paving the way for a cleaner, greener future. Government incentives, such as subsidies under FAME-II and the Electric Mobility Promotion Scheme (EMPS) 2024, aim to achieve 80 per cent e2W market share by 2030. Revised policies and schemes, including battery swapping, alleviate range anxiety, boosting EV adoption and affordability. Expanding charging infrastructure and encouraging Battery-as-a-Service (BaaS), the government and private sector are actively collaborating to create a robust ecosystem that will function as a catalyst for widespread e2W usage.
Expanding Charging Infrastructure
India is rapidly expanding its electric vehicle charging infrastructure to support the growing adoption of EVs. As per the sources, it is said that the government will be installing 74,300 chargers including 48,400 fast chargers for e-2W/3Ws. The outlay for electric vehicle passenger charging stations (EVPCS) will be Rs 2,000 crore. Both the government and private enterprises are making substantial investments to address range anxiety, ensuring convenient and accessible charging options. Initiatives include expanding charging networks along highways, in urban centres, and at workplaces, all aimed at creating a seamless and user-friendly experience for EV owners.
Additionally, over the next three years, we anticipate significant disruptive growth in the electric three-wheeler (E3W) and electric two-wheeler (E2W) sectors. Concurrently, we will lay the foundation for a robust charging infrastructure to support electric four-wheelers (E4W), which are expected to see substantial growth as this infrastructure is developed.
In conclusion, India's EV industry is on the verge of rapid growth by 2025, revolutionising mobility and advancing sustainability. However, manufacturers face key hurdles, including a limited EV portfolio, inadequate charging infrastructure in rural and Tier III/IV cities, and reliance on costly imported components like lithium-ion batteries.
Addressing these barriers, this is vital to achieving the government's goal of 30 per cent electrification of the transportation sector by 2030. Notably, the electric two-wheeler market, projected to grow from one million units in 2023 to 7–9 million by 2030, and electric three-wheelers, expected to dominate with 65–75 per cent of recent sales, highlight India's potential to lead the global transition to clean mobility.
To support this shift, the conversation has moved from "if and why EV" to "how and when EV". Significant efforts are being made to strengthen infrastructure, with private companies and government authorities collaborating to create a unified national platform for establishing EV charging stations.
This article has been written by Sulajja Firodia Motwani, Co-Founder & CEO of Kinetic Green
