Electric vehicle sales in India likely to surpass one core per year by 2030: Economic Survey
According to Economic Survey 2022-2023, India’s electric vehicle (EV) market is expected to grow its annual sales to 1000 units by 2030 and create 50,000 direct and indirect jobs.
The survey presented in Parliament on Tuesday said that, in December 2022, India became the third largest auto market, surpassing Japan and Germany in sales.
“The auto industry is expected to play an important role in the transition to green energy. The domestic electric vehicle (EV) market is expected to grow at a compound annual growth rate. year (CAGR) is 49% from 2022 to 2030 and is expected to reach one unit of annual revenue by 2030,” it said.
According to industry estimates, total electric vehicle sales in India will reach around 10,000 units by 2022.
Furthermore, the survey said, “The electric vehicle industry will create 5000 jobs directly and indirectly by 2030. To support and nurture this growth, the government has taken many steps”.
The pre-budget document also highlights that the automotive sector is a key driver of India’s economic growth.
“In December 2022, India became the 3rd largest auto market, surpassing Japan and Germany in terms of sales,” it added.
In 2021, India is the largest producer of two- and three-wheelers and the fourth largest producer of passenger cars in the world.
“The importance of the industry is measured by the fact that it contributes 7.1% to the overall GDP and 49% to the manufacturing GDP while creating direct and indirect jobs of 3.7 million by the end of 2021. ,” the report said.
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Under the government’s Faster Electric Vehicle Adoption and Production (FAME) II plan, from 2019 to 2024, with a spending budget of $10,000 crore, the survey said the program has encouraged 7,1 lakh EVs, sanctioned 7,210 e-buses, of which 2,172 e-buses have been deployed until December 2022.
The scheme was expected to support 1 million two-wheelers, 0.5 million three-wheelers; 55,000 cars and 7,090 buses.
The survey also pointed to increasing sales of auto parts.
According to the Indian Automobile Components Manufacturers Association (ACMA), the auto components industry witnessed a growth of 34.8% compared to $2.65 lakh crore in the first half of 2022-23, based on domestic demand, especially from the passenger vehicle segment.
During this period, exports of components increased by 8.6% to 10.1 billion USD ( $79.03 lakh crore), while imports increased 17.2% to 10.1 billion USD ( $79.8 lakh crore).
Industry achieved revenue $4,20,621 crore in 2021-22, up from $3,40,733 crore in 2020-21.
Date of first publication: January 31, 2023, 16:07 pm IST