5 crore electric vehicles on Indian roads by 2030: KPMG report

The total number of electric vehicles (EVs) on Indian roads is likely to touch 5 crore by 2030, presenting an enormous opportunity for players in the charging ecosystem, according to a report by consultancy firm KPMG.

A large increase in electric vehicles sales is anticipated in India due to favourable factors on demand, supply and regulatory front despite a low penetration level of about 1% currently, KPMG said in its report – ‘Electric vehicle charging the next big opportunity’.

According to the report, India’s electric mobility story is rapidly evolving, with EVs gradually entering the mainstream, resulting in a three-fold rise in EV sales over the last fiscal year. The growth is currently being led by two-wheeler (2W), three-wheeler (3W), and bus segments.

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“As of March 2022, the number of EVs on Indian roads had surpassed one million. This number is likely to grow to 45-50 million EVs on road by 2030,” it said.

This presents an enormous opportunity for players in the EV charging ecosystem.

“Currently, only about 1,700 public charging stations are operational across the country which is inadequate to support the EV growth,” the report added.

There has been a strong government push to improve penetration of charging networks and increasing interest from public and private players, which is likely to bring in the much-required investments in this space, it said.

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The charging infrastructure market is slated for exponential growth with a mix of factors expected to determine the volumes and type of charging solutions required.

In terms of growth potential in the charging business, the KPMG report said in the two-wheeler segment a 15-20% growth is expected by 2025, which is slated to rise even further to 50-60% by 2030.

As for personal passenger vehicles, by 2025 the charging business is expected to grow by 8-10% and 35-40% by 2030, while in four-wheeler commercial vehicles, the growth is to be likely at 15-20% by 2025 and 60-65% by 2030.

For electric bus charging, the report said the expected growth is 10-12% by 2025 and 45-50% by 2030. The same for three-wheelers is 45-50% by 2025 and 90-95% by 2030, the report added.

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It, however, pointed out that India’s charging infrastructure demands are unique, considering that the vehicle mix is dominated by two-wheelers and three-wheelers, as opposed to advanced countries where four-wheelers is the dominant segment.

In the short-term, the report said home/workplace and fleet charging solutions show maximum potential with a shift to take place to public charging as the market matures in the future.