EVs in India might grow 12x to 30.4M by 2032
What's the story
India's electric vehicle (EV) market is projected to grow 12 times by 2032, according to a report by the India Energy Storage Alliance (IESA). The study, prepared by Customized Energy Solutions (CES), predicts annual unit sales will reach an astounding 30.4 million units under a high-growth National Electric Vehicle (NEV) scenario. This growth is expected to be driven by stronger policy measures, localization efforts, and expansion of charging infrastructure.
Market leaders
Dominance of 2- and 3-wheelers
In 2025, electric two-wheelers continued to lead the market with a whopping 60.1% share of total EV sales.
They were followed by electric three-wheelers which contributed some 31.6% to the market.
Together, these two segments accounted for over 91% of nearly 2.5 million electric vehicles sold during that year, highlighting their dominance in India's growing EV landscape.
Market growth
Battery demand to surge
The report also predicts battery demand will jump from 19 GWh in 2025 to a whopping 362 GWh by 2032.
This is mainly due to rising EV volumes and increasing battery pack sizes across vehicle segments.
India's EV component market, worth ₹41,000 crore in 2026, is also expected to grow into a massive ₹3.02 lakh crore industry by the same year under the business-as-usual scenario.
Market hurdles
Localization challenges remain
Despite the projected growth, the report highlights significant localization challenges across the supply chain.
It notes that India's motor and controller localization remains at 30-40%, inverter supply chains are heavily import-dependent, and battery management systems (BMS) hardware localization lags behind software capability.
However, it also adds that companies investing early in domestic manufacturing of power electronics, battery systems, and drivetrain integration technologies could capitalize on an incremental ₹2.61 lakh crore market opportunity by 2032.