Global EV market projected to hit $2,108 billion by 2033: Axis Securities report

The global electric vehicle (EV) market, currently valued at $255 billion as of 2023, is expected to soar to $2,108 billion by 2033, according to a recent Axis Securities report. This remarkable growth will be driven by a compound annual growth rate (CAGR) of 23% from 2024 to 2033, reflecting a significant rise in global demand for sustainable mobility solutions.

Key Drivers of EV Market Growth

The report highlights several key factors fueling this expansion:

Government Policies: Various government initiatives and subsidies are playing a crucial role in promoting EV adoption.

Product Launches: The introduction of new and innovative EV models is attracting more consumers.

Technological Advancements: Rapid advancements in EV technology are making these vehicles more efficient and affordable.

Cost Reduction: The decreasing cost of the bill of materials (BoM) is contributing to lower manufacturing costs.

India’s EV Market on the Rise

The Indian EV market is poised for substantial growth, with Axis Securities forecasting that it could reach 10 million units annually by 2033, up from 1.7 million units in the financial year 2023-24. India is expected to lead the EV revolution over the next decade, with significant adoption across various vehicle categories, including three-wheelers (3W), two-wheelers (2W), electric buses, and passenger vehicles.

Government Support and Infrastructure Development

To support this growth, the Indian government has allocated a total of ₹10,900 crore in subsidies over the next two years. This funding aims to promote the adoption of EV two-wheelers, three-wheelers, and buses. The scheme targets the sale of 24.79 lakh two-wheelers, 3.16 lakh three-wheelers, and 14,028 e-buses by March 2025. Subsidies of ₹10,000 per two-wheeler and ₹50,000 per three-wheeler are part of this initiative.

Additionally, ₹500 crore has been allocated to increase the adoption of electric trucks and ambulances, with incentives linked to scrappage certificates from approved scrapping centres. Another ₹500 crore is designated for the deployment of e-ambulances, including hybrids.

Enhancing EV Charging Infrastructure

A critical aspect of promoting EV adoption is the development of charging infrastructure. The Indian government has committed ₹2,000 crore to establish public EV charging stations across the country. This investment aims to support the installation of:

22,100 fast chargers for EV four-wheelers

1,800 chargers for EV buses

48,400 chargers for electric two-wheelers and three-wheelers

Favorable Tax Rates for EVs

In an effort to make EVs more affordable, the Indian government has introduced favorable tax rates for electric vehicles. Electric cars are taxed at 5%, compared to 28% for hybrid vehicles and 49% for internal combustion engine (ICE) vehicles.

The Axis Securities report underscores the significant potential of the global and Indian EV markets over the next decade. With strong government support, technological advancements, and growing consumer demand for sustainable mobility solutions, the EV market is set for substantial growth, transforming the future of transportation.