The Indian government has set a target of 30% EV sales by 2030 through the PLI mechanism and government incentives, indicating that the market is expanding at an unprecedented pace. The number of registered EVs has surged to 5.67 million units, and the charging station network continues to expand. However, the infrastructure imbalance remains a major strategic challenge, opening up opportunities for Thai EV battery and parts manufacturers, with the electric motorcycle segment having a high growth opportunity.
December 9, 2568 – Information from the Thai Embassy in Mumbai (India) states that India is entering a rapid transport transformation phase. With an ambitious policy goal of pushing for electric vehicles (EVs) to account for 30 percent of all vehicle sales by 2030, this drive is being actively supported by the central government, local governments and industry, with a focus on creating a cleaner transportation ecosystem.
As of February 2568, the latest data clearly confirms the market expansion, with the cumulative number of EV registrations reaching approximately 5.675 million units, representing a share of 1.44% of the total number of vehicles in the country (389.77 million units).
The market that is prominent and spearheading the transition is the electric two-wheeler (e-2W) and electric three-wheeler (e-rickshaws and e-carts) segments due to their high economic viability for daily commuting and transportation.
- Group of e-rickshaws/e-carts: In fiscal year 2567-68, there will be a total of more than 540,000 vehicles sold and registered.
- Electric 4-wheeler group (e-4W): There were approximately 116,000 registered vehicles, an increase of approximately 15% from the previous year.
- Electric 2-wheeler group (e-2W): Showing the highest growth rate with an expansion rate of 57% from the previous year.
The rapid growth in the two- and three-wheeler segment reflects that the EV market is transitioning from a niche alternative to passenger cars to a mainstream transportation solution by the end of the decade, with lower operating costs being a key motivator.
The expansion of EVs in India is being driven not only by sales volumes but also by government efforts to build a domestic supply chain and significant public investments.
The Indian government has implemented the Production-Linked Incentive (PLI) scheme to enhance domestic production capabilities and reduce reliance on imports, particularly in batteries and advanced EV components. For example, the PLI for Advanced Chemistry Cells (ACC) aims to increase battery production capacity by approximately 50 GWh with a $2.02 billion subsidy to establish a domestic battery manufacturing base.
While key states such as Maharashtra, Gujarat, and Tamil Nadu are offering tax incentives, subsidies, and production support to attract investment in electric vehicles and batteries, stimulating the expansion of the ecosystem.
The rapid growth of EVs is creating demand for batteries, chargers, power electronics, and EV supporting components that is growing faster than domestic supply, opening up opportunities for international trading partners. Between January and September 2568, India's imports of electric motorcycles (HS 871160) were valued at US$1.96 million, a 5.93% year-on-year increase, with China being the leading importer (78.94% of the total value).
Although Thailand ranks 14th and has limited import value, its market share has expanded remarkably from 0.97% to 1.72% (a proportional increase of 77.3%), significantly exceeding the global total growth rate. This figure highlights strategic opportunities for Thai businesses to expand exports of battery components, knocked-down/skold-to-skold (CKD/SKD) assemblies, and charging solutions.
However, India's transition to EVs still faces significant structural challenges that hinder widespread adoption, including:
Infrastructure and initial costs
Charging infrastructure: The current public charging station network comprises approximately 29,277 stations (as of August 2568), which to some extent alleviates long-distance driving anxiety in urban areas. However, the imbalance in the distribution of charging stations, particularly in rural/outer areas, and the inadequacy of high-speed charging points remain structural bottlenecks.
High initial cost: The initial purchase price of EVs, particularly passenger cars, remains higher than that of internal combustion engine vehicles, limiting acceptance among price-sensitive consumers, even though long-term operating costs are lower.
Supply chain and regulatory challenges
Foreign dependence: India remains dependent on foreign manufacturers for advanced technology, raw materials, and skilled personnel.
- Raw material and recycling challenges: The battery recycling system urgently needs improvement, and raw material limitations are factors that must be addressed to ensure sustainability in the supply chain.
- State-level policy uncertainty: Diverse policies and benefits from state to state can affect market predictability.
Despite the costs and challenges, the expansion of EVs will bring economic and environmental benefits:
- Environment and Climate Goals: EVs contribute to reducing exhaust emissions, leading to improved air quality in major cities, aligning with India's climate goals in 2030.
- User operating costs: Users benefit from lower charging costs, reduced component wear and tear, and lower maintenance costs, making EV ownership worthwhile in the long run.
- Pressure on the power grid: The rapid expansion of EVs may place a burden on local power distribution systems, particularly in urban areas, requiring significant investment and upgrading of electrical infrastructure.
India has built a strong policy and investment foundation for the transition to electric vehicles, with the PLI program and the expansion of charging stations being key drivers. However, achieving the 30% EV target by 2030 still depends on addressing three main challenges:
1) Reducing the initial cost of batteries (through PLI investment)
2) Expanding charging stations to provide sufficient coverage to meet demand (strategic).
3) Planning to support the electrical load in the grid system
For Thai businesses, the growth of the e-2W/e-3W import market share to 77.3% is a clear signal of strategic opportunities to expand exports or form partnerships (Joint Ventures/OEM) focusing on components and assemblies to meet continuously growing demand and reduce reliance on imports from China in the Indian market.
Read news related to All situations surrounding Asia can be found here.
