BDO India, a prominent professional services firm and a part of the global BDO network, has released a new publication titled Electric Vehicles – Green Roads Ahead: Steering Through India’s Electric Mobility Journey. This report provides an in-depth analysis of India’s electric vehicle (EV) sector, examining emerging trends, investment opportunities, funding flows, and a roadmap for navigating the industry’s growth.
In 2023, India became the third-largest recipient of EV investments worldwide. The country saw a remarkable 45% increase in EV sales, with 1.8 million vehicles sold in FY24. The Indian government has accelerated EV adoption through targeted subsidies, full Foreign Direct Investment (FDI) support, and enhanced efforts to build a comprehensive charging infrastructure. As India aims to become a $7 trillion economy by 2030, the automotive industry represents a potential $500 billion opportunity.
Samir Sheth, Head of Deal Advisory Services and International Liaison Partner at BDO India, commented, “With record growth in EV investments, technological advancements, and strong policy backing, the sector is set for transformative expansion. This will create valuable opportunities for investors, manufacturers, and consumers. The rising investment sizes and the government’s proactive stance ensure that India’s EV industry is poised to lead the global shift to sustainable transportation.”
Ashish Bagadia, Corporate Finance and Investment Banking Partner at BDO India, added, “The phase of experimenting with business models is coming to an end. The focus now shifts to operational efficiency, innovation, and sustainable growth. As the EV revolution accelerates, India is becoming a key player on the global stage, with each sector seeing consistent funding.”
India, the world’s sixth-largest trucking market, holds immense untapped potential in the electric truck segment. Collaboration with Original Equipment Manufacturers (OEMs) and other key stakeholders can significantly boost operational efficiency, fostering industry growth. Additionally, adopting sustainable practices and adhering to Environmental, Social, and Governance (ESG) standards are crucial for driving market expansion and attracting investments in this evolving sector.
India’s automobile industry has long been known for delivering global features at affordable prices, and this will continue to be central to the EV narrative. With a per capita income one-eighth of the global average, low-cost two-wheelers play a vital role in the country’s transportation landscape. E-commerce companies are increasingly adopting electric two-wheelers for last-mile delivery to reduce costs and improve profitability.
The evolution of the Indian EV sector will be driven by companies that scale sustainably, adopt omnichannel strategies, and innovate to meet consumer demands. As the market matures, funding increases, and sustainability becomes a focus, the sector is entering an exciting phase of transformation.
India stands on the brink of a revolutionary shift in electric mobility, where innovation and sustainability intersect. As investor confidence grows and the government solidifies its support through favorable policies, the EV sector is not just an opportunity—it’s the future of transportation.
