Electric Surge: India's EV Market Poised for Breakthrough

India's electric vehicle market is projected to soar significantly, reaching 30.4 million units by 2032 under the NEV scenario. Strong growth is driven by rising fuel costs, expanding SUV offerings, and new product launches. Battery demand and component market growth highlight the critical role of policy and infrastructure support.

India's electric vehicle (EV) market is on the verge of significant expansion, anticipated to grow 12-fold to 30.4 million units by 2032, as per the National EV Target scenario. A report by the India Energy Storage Alliance, prepared by Customized Energy Solutions, highlights this momentum, with annual sales set to jump from 2.0 million units in 2024 to 2.6 million in 2025, marking a nearly 26% increase.

The report notes that in 2025, electric vehicles accounted for 9.5% of all vehicle sales in India, an increase from 8.1% in 2024. Dominating the market, electric two-wheelers and three-wheelers made up over 91% of total EV sales, while electric four-wheelers showed rising consumer adoption with a 7.7% market share. Additionally, battery demand is poised to soar from 19 GWh to 362 GWh by 2032, driven by larger battery packs and increasing EV adoption.

India's EV component market, valued at Rs 41,000 crore in 2025, is projected to reach Rs 3,02,000 crore by 2032, reflecting a 38% CAGR. However, the report highlights that much of the supply chain remains reliant on imports, underscoring the necessity for localized manufacturing to capitalize on burgeoning market opportunities.