India’s mobility market is poised for significant transformation, with projections indicating that it will surpass Rs. 51,92,400 crore (US$ 600 billion) by 2030. This remarkable growth, highlighted in a recent Google and Boston Consulting Group report, is driven by the increasing adoption of electric vehicles (EVs) and the rise of shared and connected mobility solutions. The evolving landscape also shows the continued dominance of traditional revenue streams, such as internal combustion engine (ICE) vehicles, finance, and insurance, but the growing share of electric vehicles will be the defining factor in shaping the future of the industry.

By 2030, emerging sectors, including electric shared mobility and connected mobility, are expected to contribute Rs. 8,65,400 crore (US$ 100 billion) to the Indian mobility market. At the same time, the EV sector will play a pivotal role in this transformation, with the share of four-wheeler EVs anticipated to rise from just 2.2% in FY24 to an estimated 15-17% by FY30. Similarly, two-wheeler EVs are projected to see explosive growth, expanding from 5.4% to 35-40% over the same period. This shift reflects not just technological advancements but also changing consumer preferences and growing environmental awareness.

Despite the rapid rise of electric vehicles, the EV market still faces several challenges. According to the report, 51% of respondents cited concerns over the lack of EV charging infrastructure, while 45% pointed to the high upfront costs of EVs as a barrier to adoption. These challenges, however, are being addressed as the industry focuses on building better infrastructure and driving down costs, with increasing government support and private sector investments.

An interesting trend highlighted in the report is the changing consumer behavior in the EV market. For four-wheeler buyers, there is a strong preference for vehicles with advanced technology and sophistication. In contrast, two-wheeler buyers are more focused on practicality and affordability. Another key observation is the growing influence of women in the decision-making process. Women now account for 52% of EV purchasing decisions, surpassing their role in the traditional ICE vehicle segment. This reflects broader societal shifts and the increasing awareness of sustainable transportation options.

In addition to the rise of electric vehicles, connected vehicle features like infotainment systems, real-time parking assistance, and other high-tech solutions are becoming an essential part of consumer demand. These features underscore the importance of technological innovations in meeting the diverse needs of consumers as the market matures.

Overall, India’s mobility industry is set for a remarkable evolution, with electric vehicles driving much of the growth, along with the expansion of shared and connected mobility services. The 2030 projections reflect a changing landscape, where technology, sustainability, and consumer preferences will all play critical roles in shaping the future of mobility in India.

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