India Electric Car Market COVID-19
Impact Analysis By Segmentations, Key
Company Profiles & Demand
“21 of the world's 30 cities with the worst air pollution are in India”, says the headline of a
February 2020 article published on the website of CNN. This is not an exaggeration, as an air
quality index (AQI) in the mid-200s is common in Delhi, Mumbai, Bangalore, and other
metropolises in the country. Considering that the transportation industry plays a major role in
the emission of carbon dioxide (CO2) and other greenhouse gases (GHG), the government is
now promoting electric vehicles (EV), by offering purchase subsidies and bearing a major part
of the research and development (R&D) expenditure.
Request to Get the Sample Report: https://www.psmarketresearch.com/market-
As per P&S Intelligence, government support will propel the Indian electric car market from
$71.1 million in 2017 to $707.4 million by 2025, at a massive 34.5% CAGR between 2018
and 2025. In this regard, the FAME India scheme, launched in 2014 with an initial investment
of INR 795 crore, which was later revised to INR 895 crore, is the most-important step. In
2019, the second phase of the scheme was launched with a funding of INR 10,000 crore,
which will be spent on subsidizing electric vehicles and helping companies with R&D for
cost-effective electric propulsion.
The recent decline in the prices of batteries used in electric cars is a key reason for the
growing demand for electric cars in India. Since India is a developing countries, the
disposable income of people was not allowing a lot of people to invest in these vehicles.
However, now because of technological advancements, the prices of batteries have reduced,
thereby decreasing the overall cost of the vehicle. This is resulting in the rising adoption of
electric cars in the country.
The division is further expected to dominate the market during the forecast period,