Research from US EPA indicates that 65% of the global carbon dioxide emissions come from burning fossil fuels, which contributes to rising temperatures and climate change. To counter this, developed countries are embracing “Net Zero” emission goals with laws to encourage zero-emission solutions in energy and transportation. The Government of India has also strongly endorsed Net Zero, as evident in the Prime Minister’s commitment in COP26 to reduce India’s carbon intensity by 45% by 2030 and achieve net zero by 2070. In response to escalating environmental concerns, governments worldwide are instituting deadlines to completely phase-out of new fossil fuel-powered road vehicles.

The global electric vehicle (EV) sector is currently experiencing an unprecedented surge, poised for an annual growth rate of 15.9% from 2023 to 2035. By 2035, the sector is expected to achieve a significant milestone, with sales projected to reach 51.6 million units. This accelerated growth underscores the mass electrification of the global transport industry, signalling a significant transition from conventional internal combustion engine (ICE) vehicles.

India, in particular, has undergone a remarkable transformation in its EV sector. In a relatively short timeframe, EV registrations in India have surged from 1.25 lakh units in 2020 to an impressive 10.25 lakh in 2022, with the figure nearing 10 lakh in 2023. This notable shift is corroborated by the 2022-23 Economic Survey, which outlines ambitious goals for the Indian EV market, projecting a robust 49% Compound Annual Growth Rate (CAGR) from 2022 to 2030, with the aim of achieving annual EV sales of one crore units by 2030.

Technological advancements fuelling growth: 

Technological advancements are driving the growth of the EV market, with innovations improving battery efficiency, driving range, and safety features. Integration of Advanced Driver Assistance Systems (ADAS) and semi-autonomous driving capabilities enhance safety, while Connected Car Technology, with over 60% year-on-year growth in India, improves the driving experience. 

EVs today are tech marvels with advance features that are, at times, par with luxury brands. From first of its kind in India, app stores, on-the-move to over the air software updates, consumers have an hassle-free ownership experience. Technologies like V2L (Vehicle to load) and V2V (Vehicle to Vehicle) charging have also made inroads in this market.

Evolving consumer trends: 

Consumer behaviour is significantly shaping the automotive industry, with a notable shift towards sustainability as a key criterion for purchasing decisions. Heightened environmental consciousness has propelled interest in EVs and other sustainable transportation alternatives, alongside considerations such as safety, brand reputation, and cost. Despite persistent challenges like range anxiety and charging infrastructure limitations, the growing consumer demand for sustainable options is fuelling industry innovation, presenting opportunities to meet the evolving needs of an environmentally conscious market.

Additionally, EVs are also attracting women buyers, with one in every four EV purchases now made by women. The fuss-free driving experience offered by EVs, attributed to their engineless design, reduced vibrations, and low maintenance requirements, adds to their appeal. As the adoption EVs continues to surge, the charging infrastructure too is rapidly evolving to cater to changing consumer demands. The diverse array of charging stations across various settings including urban areas, highways, workplaces, and residential complexes, have led to remarkable reductions in charging times, notably with the introduction of fast-charging stations.

Looking Ahead: 

A major transition lies ahead for the EV market. By 2030, battery costs are expected to reduce drastically. As these costs fall, EVs will become more competitive across all automotive segments. The main benefits for consumers will be the reduced operating costs, lower fuel prices and easier maintenance. Additionally, the acceptance of EVs in India will be driven by leading businesses that take the first step towards committing to the transition in collaboration with the Central as well as various state Governments, which will serve as the backbone in providing the necessary infrastructure to drive demand for EVs. Expanding charging networks, advancements in battery tech, and affordability measures will further accelerate India's transition to electric mobility.