India is poised to become the world’s fourth-largest electric car manufacturer by 2030, trailing only China, the European Union, and the United States, according to a new report by the Rhodium Group. The country’s electric four-wheeler production capacity is expected to surge tenfold to 2.5 million units, up from just 0.2 million in 2024.
⚡ India’s EV Growth Trajectory
The report highlights that India’s projected production capacity will exceed domestic demand by 1.1 to 2.1 million units, creating a strong case for EV exports. However, to compete globally—especially with China—cost reduction and supply chain efficiency will be critical.
“This push aligns with the government’s strategy to ‘Make in India for the world’,” the report noted.
🚗 Domestic Demand and Market Share
- India’s EV demand is projected to reach 4–14 lakh units by 2030, up from 1 lakh in 2024
- EV penetration in four-wheelers could rise to 7–23% of total car sales
- Domestic EV leaders Tata Motors, MG Motor, and Mahindra currently hold a combined 90% market share
🔋 Battery and Component Manufacturing
India is also emerging as a key player in battery module production, with significant capacity under construction. While its cell production will lag behind China, the EU, and the US, India is expected to outpace Japan and South Korea in module output.
🛡️ Policy Support and Trade Strategy
India’s EV growth is driven by a mix of industrial policy, consumer subsidies, and protectionist trade measures, including import tariffs of up to 100% on fully built EVs. These policies have helped boost local manufacturing but also limit consumer choice and affordability.
Stay tuned for updates on India’s electric mobility revolution.
