According to a recent report by Nomura, India’s electric vehicle (EV) market is expected to reach 9% penetration by FY30. The report highlights that EV adoption in passenger cars has remained at around 2% over the past two years, but predicts a rise to 5% by FY27 and 9% by FY30. To meet future Corporate Average Fuel Efficiency (CAFE) standards and remain competitive, auto manufacturers are currently focusing on affordable, production-ready EV models.
The report emphasizes that success in the EV market is crucial for long-term sustainability. The Bharat Mobility Expo 2025, which was held recently, demonstrated India’s shift towards electric mobility, with exhibitors showcasing advanced, eco-friendly vehicles. The event also showcased progress in technologies such as Advanced Driver Assistance System (ADAS) and EV components.
EV suppliers are now focusing on integrated solutions, such as 3-in-1 and 5-in-1 axles, which are expected to improve both efficiency and affordability. The report by Nomura also suggests that vehicle content is expected to increase with the introduction of premium features such as advanced lighting, interior plastics, touch-based switches, and more sensors for ADAS.
Overall, the report suggests that India’s electric vehicle market is set to experience significant growth in the coming years, driven by the need for more sustainable transportation solutions and the increasing adoption of premium features.