India’s EV market to grow 36% by 2026

India’s domestic electric vehicle (EV) market is projected to experience annual growth of 36 per cent between 2019 and 2026, following the implementation of the latest EV incentives scheme in April

December 13, 2019

Government’s FAME II scheme, aimed to boost the EV market through subsidies, is expected to launch up to 1 million EV two-wheelers

In 2018, EV sales increased to 365,920 units, while the EV battery market was valued at US$520 million, as per India Energy Storage Alliance

IESA report forecasts total charger sales rising from 1,000 to 50,000 units by 2026, with an investment of US$520 billion in public charging points

Government of India has sanctioned 5,595 electric buses in 64 cities to facilitate clean mobility solutions for public transport

India’s domestic electric vehicle (EV) market is expected to record an annual growth of 36 per cent between 2019 and 2026, according to a report by the Press Trust of India. The growth will be driven by improved market traction to implementation of the second phase of the EV incentives scheme, FAME II, introduced earlier in the year. 

The second phase of the Faster Adoption and Manufacture of Electric Vehicles (FAME) scheme aims to popularise electric and hybrid vehicles, with subsidies offered for up to 1 million EV two-wheeler, running on the latest technology batteries. 

According to a report by the India Energy Storage Alliance (IESA), a group of 96 stakeholders comprising energy storage manufacturers, research institutes, renewable energy companies, and power electronics companies, the rapid growth of India’s EV market began in 2018. EV sales rose to 365,920 units while the battery market achieved an estimated value of $520 million that year, with both markets projected to grow rapidly within the 2019-2026 forecast period.

With regards to infrastructure requirements of the EV market, the report forecasts total charger sales to rise from 1,000 units in 2018 to 50,000 units in 2026 through an estimated investment of US$520 billion towards public EV charging points. This investment is one of many government initiatives to help develop India’s electric mobility sector as it strives for greater penetration of EVs in public and private sector transportation. 

Most recently, under the second phase of FAME, the government-sanctioned 5,595 electric buses in 64 cities for intracity and intercity operations, to facilitate clean mobility solutions in public transportation. Furthermore, the Ministry of Heavy Industries and Public Enterprises encouraged expressions of interest (EoI) for proposals for the deployment of electric buses in cities with populations larger than 1 million, smart cities, state or union territory capitals, and special category states.