India's Electric Future: EV Penetration Set to Surge by 2030

India's electric vehicle market is poised for significant growth, with EV penetration expected to reach 9% by FY30. The transition to sustainable mobility is crucial for meeting future fuel efficiency norms. The auto industry is focusing on affordable EV models and innovations to drive adoption and sustainability.

Electric vehicles (EVs) in India are predicted to rise sharply, reaching a 9% penetration by fiscal year 2030, up from the current 2%, as detailed in a Nomura report. This progress is pivotal to India's sustainable mobility ambitions.

The report notes passenger vehicle EV penetration has been stagnant at roughly 2% for the past two years, but it's expected to climb to around 5% by 2027 and 9% by 2030. Similarly, electric two-wheeler adoption is forecasted to increase from 5.8% in FY25 to 10% by FY27, culminating at 20% by FY30.

Bolstering EV success is vital for automakers to meet evolving Corporate Average Fuel Efficiency (CAFE) standards. Efforts are underway to produce affordable, market-ready EV models. The Bharat Mobility Expo 2025 highlighted a significant shift toward electric mobility, with automakers showcasing eco-friendly and advanced technology.

The Auto Component Expo highlighted breakthroughs in Advanced Driver Assistance Systems (ADAS) and EV components. The industry's focus on premium features and innovations, such as integrated axle solutions, promises to enhance EV efficiency and affordability.

This report underscores a transformative decade ahead for India's auto industry, centralizing electric mobility as a keystone for a sustainable future.

(With inputs from agencies.)