Indian EV market potential likely to touch Rs 20 trillion by 2030: Gadkari

Union Minister Nitin Gadkari forecasts India's EV market could hit Rs 20 trillion and 10 million annual sales by 2030. He expects the sector to create 5 million jobs

Union Minister Nitin Gadkari on Tuesday predicted that the Indian electric vehicle market potential is likely to touch Rs 20 trillion by 2030 across the entire EV ecosystem while hitting 10 million units annual sales.

Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), the Minister for Road Transport and Highways highlighted the automobile sector’s potential to generate 50 million jobs. He further forecasted that the market for electric vehicle (EV) financing could expand to an estimated Rs 4 trillion by 2030.

Presently, there are 30 lakh electric vehicles registered in India with two wheelers making up 56 per cent of total sales. In 2023-24 there was a 45 per cent increase in sales of EVs, the minister noted.

During his address, Gadkari also asked the automakers to boost their efforts in promoting old vehicle scrappage. While some companies are currently offering discounts of up to 3 per cent on new vehicles for those who scrap their old ones, Gadkari said that more is expected from the industry.

Earlier, Gadkari had said that the cost of EVs is expected to match that of petrol and diesel vehicles within the next two years.

In March, the Centre approved a policy for the EV sector to attract investments in domestic manufacturing. As part of the policy, companies that are willing to set up manufacturing facilities for EV in India, will be allowed limited imports of cars at lower customs duty. This along with several other initiatives is being taken to leverage the growth of the EV sector in India, which is part of the Centre’s broader strategy to expand the sector and integrate it with the renewable energy industry.

The focus on the renewable energy sector is part of India’s commitment to a healthier planet by adopting eco-friendly practices in its development goals. The adoption of EVs in the country remains modest, with penetration rates at roughly 2 per cent for passenger vehicles and 6 per cent across all vehicle categories.