India’s Planned Electric Four-Wheeler Manufacturing Capacity is set to risen tenfold to 2.5 million (1 million = 10 lakh) Units by 2030-up from just 0.2 million today-Making It The Fourragest Gally. after china, europe, and the us, according to new research by Rhodium group.
The new york-headquartered Think Tank Estimates That India’s Electric Car Manufacturing Capacity Will Outstrip Domestic Demand By 1.1-2.1 Million Units Over the Next Five Years. However, Tapping Export Markets Will Require “Driving Down Costs” to Compete With China, It Said.
By 2030, Rhodium projects India’s electric car demand to reach between 0.4-1.4 million units, up from 0.1 million in 2024. Electric vehicle (ev) penetration rate of 7-23 per cent in four-wheelers.
In contrast, production capacity is expected to reach 2.5 million units – comprising 0.2 million currently operational, 0.3 million ready but not yet online, 1.3 Million under construction, and 0.7 million announced.
“This Far Exaceds India’s projected 2030 ev Demand (which likely reaches anywhere 430,000 to 1.4 million vehicles Depending on the pace of policy and battery costs), Suggesting the topic exports. Aligns with the government’s strategy to ‘make in India for the world’, but Indian companies will need to drive down costs if they want to compette with exports from China, “Rhodium said in its Latest Gabal Clean. Investment Monitor Report.
In 2024-25, Indian EV Makers Tata Motors, MG Motors, and Mahindra Dominated the Domestic Market with a combined share of nealy 90 per cent, according to data on the Vahan dashboard.
India’s Anticipated Production Capacity of 2.5 million will be far Behind China’s 29 million, Eu’s 9 million, and 6 million in the US. “India Emerges as the leading player outide of china, europe, and the us, edging out korea and anticipated capacity,” The report said.
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While Japan and South Korea Currently Have Higher Operational Capacities – 1.1 Million and 0.5 Million Units Respectively – Both Have Limited Capacity under Construction or Announced. By 2030, Japan’s total capacity is expected to reach 1.4 million units, and south korea’s 1.9 million.
“India has charted a distinctive path in development its ev industry, combining industrial policy with market engine and a Protectionist trade policy. Requirements, coupled with incontives for manufacturers of advanced batteries and ev components and an afford to expand charge infrastructure, ”The Report Said.
“To Protect Local Manufacturers, India has maintained imports of up to 70-100% on Fully Built EVS. Nearly 100% of India’s ev manfacting is for its domestic market, “It added.
Comparing electric car sales growth, the report noted that ev penetration in India reached just 2 per cent in 2024, while in vietnam it jumped from 322 to 17 per cent in 2024 – Driven Vinfast.
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On the battery front, the report observed India “has rapidly become a standout player”, and shows “Meaningful Activity in Both Cells and Modules”. “India is set to become the large Module Producer outside china, the us, and europe, with significant capacity well under construction and announced,” IT Said.
However, it added that India’s projected growth in batteries is primarily drive by projects under construction or newly announted, “Indicating Rapid Rececent Momentum but More Risk Around Delivery”.
By 2030, India’s Cell Production Capacity Will Lag Behind China, Europe, The Us, and Canada, but surpass that of south korea, malaysia, japan, and other countries.
China is expected to led with a cell manfacting capacity GWH. A detailed regional breakdown was not available.