India's EV sales to hit 22M units by 2035
What's the story
India's electric vehicle (EV) market is set for a major transformation, with sales projected to reach a staggering 22 million units by 2035. This would mean that over half of all vehicles in most segments would be electric. The prediction comes from a recent KPMG India report, which credits government support, improved economics, and the rapid expansion of charging infrastructure as key drivers behind this growth.
Market dynamics
Two-wheelers dominate current EV sales
The KPMG report highlights that two-wheelers are currently leading the EV sales race, accounting for about 80-85% of total sales. It also notes a growing demand for premium electric cars with long ranges. The surge in charging points across India is making it easier than ever to go electric, further driving this market shift toward sustainable transportation.
Challenges
Need to boost domestic lithium mining, recycling
Despite the optimistic projections, the KPMG report also highlights a major challenge: India's heavy reliance on imported minerals like lithium for EV batteries. To ensure smooth operations and sustain this growth trajectory, the country will have to ramp up domestic mining and recycling efforts. It will also need to collaborate globally to secure a steady supply of these critical materials.
Opinion
KPMG expert stresses on securing raw materials
Rohan Rao, Partner, Automotive and Lead-Electric Mobility at KPMG in India, emphasized the importance of securing the raw material backbone for India's EV ambitions. Meanwhile, Raghavan Viswanathan, Partner at Deal Advisory, said that strategic investments in exploration, refining and recycling would be vital to ensure a long-term competitiveness in the global EV ecosystem.