Electric vehicles will consume up to 8.7 per cent of India's total electricity by 2035. The electric vehicles in India have been witnessing a rapid surge in demand, sales and fleet volume. The EVs will consume a significant share of India's electricity by the middle of the next decade, ranging between six per cent and 8.7 per cent.

Investment management firm IKIGAI Asset Manager Holdings has claimed in its report that this power consumption by electric vehicles reflects the growing adoption rate of EVs across the country and their impact on the power grid. The report also highlighted that globally as well, electric vehicles are witnessing an increasing level of adoption by consumers. In 2023, electric vehicles made up 18 per cent of total car sales worldwide, with China contributing to more than 50 per cent of those sales. This rapid increase in the use of electric vehicles is expected to have a significant impact on global electricity consumption as well.

The report further forecasted that with the rising penetration of electric vehicles, their share in global electricity consumption will see a significant rise. This growth is expected to be 0.5 per cent in 2023 to between 8.1 per cent and 9.8 per cent by 2035, the report projected.

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India needs robust energy infrastructure to support EV ecosystem

The study also pointed out that to support the bulging EV ecosystem, India needs to build a robust energy infrastructure, as the demands are rising fast. As more consumers buy and own electric vehicles, the country's power sector will need to expand production capacity to meet the new electricity requirement efficiently.

The Indian electric vehicle market is expected to grow from $3.21 billion recorded in 2022 to $113.99 billion by the end of this decade, registering a CAGR of 66.52 per cent. To support the bulging EV market, the electric vehicle battery market in the country too is projected to surge from $16.77 billion in 2023 to $27.70 billion by 2028.

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