India's Electric Vehicle Market Set for Massive Growth

India’s electric mobility sector is expanding rapidly, propelled by government programmes such as FAME‑II, the Production Linked Incentive scheme and state‑level EV policies. A recent feasibility study notes that major component clusters are emerging in Tamil Nadu, Maharashtra, Gujarat, Karnataka, Telangana, Haryana and Uttar Pradesh.

Industry forecasts project the domestic EV component market to grow eight‑fold by 2032, reaching roughly Rs 3,02,000 crore, while total EV sales could rise twelve‑fold to about 30 million units by the same year. Battery demand is expected to surge from 19 GWh in 2025 to 362 GWh by 2032, with four‑wheelers accounting for 40 % of that consumption. The component mix in 2025 was led by battery packs (52 %), motors (22 %) and inverters (12 %).

Delhi’s newly announced EV policy will ban registration of conventional two‑wheelers from April 2028, though electric penetration in the city’s two‑wheel segment remains low at 7.3 % in FY26. The policy includes up to Rs 30,000 incentives per vehicle for the first year and tax exemptions for electric four‑wheelers, aiming to accelerate adoption despite challenges in supply, financing and charging infrastructure.