India’s EV market set to reach USD 191 billion by 2034

India's electric vehicle market is witnessing rapid growth, with EV sales increasing 46-fold since 2016. The government projects the market to reach USD 191.04 billion by 2034, supported by rising investments, battery production, charging infrastructure and growing exports

New Delhi: India’s shift to electric vehicles is becoming a key economic driver, with EV sales rising 46-fold from about 50,000 units in 2016 to 2.3 million units in 2025 and the market is projected to grow to $191.04 billion by 2034 at a CAGR of 54.94 per cent, the government said on Wednesday.

India’s growth has outpaced global trends, where EV sales increased roughly 20 times- from 9.18 lakh in 2016 to 18.78 million in 2024, an official statement said.

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The EV battery market is likely to grow from $2.71 billion in 2025 to $15.90 billion by 2034 at a CAGR of 21.70 per cent. India aims for 30 per cent of all vehicle sales to be electric by 2030 and plans 1.32 million charging stations by 2030 to strengthen the ecosystem.

India’s EV penetration rose from about one‑fifth of global levels in 2020 to over two‑fifth in 2024 and much of the growth has been driven by motorised two‑wheelers (12.8 lakh units) and three‑wheelers (8 lakh units) sold in 2025.

Further, Indian EVs have begun making strong headway in international markets and exports have risen from $1.2 million in 2020 to $84 million in 2024.

Top export destinations were Nepal, Indonesia and Japan, the statement said.

On the infrastructure side, India’s public EV charging network is expanding rapidly. According to Bharat Heavy Electricals Limited (BHEL), 16,561 of the 52,718 public charging stations available as of July 2026 are equipped with fast EV charging facilities.

The statement said investment activity remains strong, with the sector raising about $1.4 billion in FY25, nearly 27 per cent higher than 2024.

EV manufacturers attracted the bulk of this funding, securing around $1.2 billion and Delhi emerged as the top city for EV investments.

The government has been driving electric mobility since 2015 with multiple schemes for the auto industry such as FAME, PLI scheme for Advanced Chemistry Cells and battery localisation.