The Indian electric vehicle industry has so far been dominated by electric two-wheelers and three-wheelers. While the adoption of EVs in the country’s passenger vehicle segment has grown significantly in recent years, it still lags behind electric two-wheelers. However, this is expected to change in the coming years, with the Indian passenger vehicle market projected to see EV penetration rise to nine per cent by FY30.

Currently, electric vehicles make up two per cent of the Indian passenger vehicle market, a figure that has remained stagnant over the last two years. By FY30, this share is expected to increase to nine per cent, according to a report by Nomura. The study also highlighted that the rise in EV adoption is part of India's broader shift toward sustainable and eco-friendly mobility solutions. It further stated that the adoption of electric two-wheelers is expected to grow from 5.8 per cent in FY25 to 10 per cent by FY27 and 20 per cent by FY30.

The report emphasized that success in the electric vehicle sector is essential for automakers to meet future Corporate Average Fuel Efficiency (CAFE) norms and maintain long-term competitiveness in the market. As a result, auto companies are now focusing on developing affordable, production-ready EV models to drive adoption. The recently concluded Bharat Mobility Global Expo 2025 showcased the shift towards eco-friendly, technologically advanced vehicles, while the Auto Component Expo highlighted innovations in areas like Advanced Driver Assistance Systems (ADAS) and EV components.

The report also noted that the content per vehicle is expected to increase significantly, with the addition of premium features and innovations, including advanced lighting systems, touch-based switches, interior plastics, gear shifters, and more sensors for ADAS.

India's automotive industry is poised for a transformative decade, with electric mobility playing a pivotal role in shaping a sustainable future.

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