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Indian Electric Vehicle Market to Hit $235 Billion by 2030, Generating 50 Million Jobs
Team Finance Saathi
20/Dec/2024
What's covered under the Article:
- Indian EV market projected to grow to $235 billion by 2030, creating 50 million jobs.
- India requires one lakh electric buses, with production capacity currently at 50,000.
- India's automobile industry has become the third-largest globally, surpassing Japan.
The Indian electric vehicle (EV) market is poised for transformative growth, with projections indicating a staggering market potential of US$ 235.13 billion (Rs. 20,00,000 crore) by 2030. This growth is expected to generate an estimated 50 million jobs across the expansive EV ecosystem, encompassing manufacturing, infrastructure, and allied sectors. Speaking at the '8th Catalyst Conference on Sustainability of the EV Industry - Evexpo 2024', Union Minister of Road Transport & Highways Nitin Gadkari highlighted the critical role of green energy in India’s transport sector transformation.
The Growing EV Financing Market
As part of this remarkable growth, the electric vehicle financing market alone is projected to expand to US$ 47.03 billion (Rs. 4,00,000 crore) by 2030. This significant expansion underscores the need for robust financial frameworks to support the increasing adoption of electric vehicles and the development of associated infrastructure.
Addressing Environmental and Economic Challenges
India’s transport sector is responsible for 40% of the country’s air pollution, according to Mr. Gadkari. A shift to electric vehicles could drastically reduce this environmental burden. Moreover, India’s dependency on fossil fuel imports, which currently costs the economy US$ 258.64 billion (Rs. 22,00,000 crore) annually, further emphasises the importance of transitioning to sustainable energy sources.
Demand for Electric Buses
Highlighting the critical shortage of electric buses, Mr. Gadkari noted that India requires one lakh electric buses, but the current production capacity stands at just 50,000 units. He urged manufacturers to expand their production facilities and prioritise quality assurance to meet the growing demand. This presents a significant opportunity for stakeholders in the EV manufacturing sector to scale up operations and contribute to India's green transport vision.
India’s Automobile Industry Growth
Reflecting on the rapid growth of India’s automobile industry, Mr. Gadkari pointed out its transformation over the past decade. When he assumed office in 2014, the industry was valued at US$ 82.29 billion (Rs. 7,00,000 crore). As of 2024, it has grown to US$ 258.64 billion (Rs. 22,00,000 crore), making India the third-largest automobile market globally, surpassing Japan. By comparison, the US automobile industry is valued at US$ 917 billion (Rs. 78,00,000 crore), and China’s is at US$ 552.55 billion (Rs. 47,00,000 crore).
A Vision for the Future
Mr. Gadkari emphasised the importance of maintaining high standards in electric vehicle production and fostering a sustainable EV ecosystem. He also encouraged stakeholders to invest in research and development to enhance EV technology, ensuring India remains competitive on the global stage.
With the potential to significantly reduce air pollution, decrease fossil fuel dependency, and drive economic growth, the Indian EV market stands as a beacon of hope for a sustainable future.
The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial.
The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro, Newmalayan Steel, Identical Brain Studios.