BDO India, one of India’s leading professional services organisations, part of BDO International, the 5th largest network globally with a presence in 166 countries and territories, launches ‘Electric Vehicles – Green Roads Ahead: Steering Through India’s Electric Mobility Journey’ publication which offers a deep dive into India’s electric vehicle (EV) ecosystem, transformative trends, funding patterns, and investment opportunities, as well as provides a roadmap for navigating this ecosystem. 

In 2023, India became the third-largest recipient of EV funding globally. The country reported a 45% year-on-year surge in EV sales, with 1.8 million vehicles sold in FY24. The Government of India has accelerated the adoption of EVs through targeted subsidies, 100% FDI permission, and an increasing focus on building a robust charging infrastructure. As India aspires to become a USD 7tn economy by 2030, the automotive industry presents an opportunity of ~USD 500bn.

Samir Sheth, Head of Deal Advisory Services, also the International Liaison Partner, at BDO India, says, “With record-breaking growth in EV funding, advancements in technology, and strategic policy support, the sector is poised for transformative expansion, creating significant opportunities for investors, manufacturers, and consumers alike. With investor conviction evident in the rising cheque sizes and the Government’s proactive policies, India’s EV industry is well-positioned to lead the global transition to sustainable transportation”

Ashish Bagadia, Corporate Finance and Investment Banking Partner at BDO India, says, “The era of experimentation with various business models is drawing to a close. The focus is now on operational efficiency, innovation, and sustainable growth. As the EV revolution gains momentum, India has emerged as a key player in the global ecosystem. With key players consistently scaling their operations and demonstrating growth, each segment within this sector is securing regular funding.”

Expert Recommendations from the Publication:

1. India, the sixth-largest trucking market globally, has significant untapped opportunity in e-trucks which should be capitalised on.

2. Collaboration with OEMs and other players will strengthen operational efficiency.

3. Sustainable practices and ESG compliance are essential for market growth and attracting investments. 

Offering global features at affordable prices has been a hallmark of India's automobile industry and will remain central to its EV narrative. India’s per capita income being one-eighth of the global average, low-cost two-wheelers play a crucial role in the country’s transportation landscape. E-commerce companies are increasingly turning to electric two-wheelers for last-mile delivery to reduce costs and boost profitability. Indian EV sector’s evolution will be driven by companies that demonstrate sustainable scaling, adopt omnichannel strategies, and consistently innovate to meet user needs. With a maturing market, increased funding, and a growing emphasis on sustainability, the EV sector is passing through an exciting phase of transformation.

India is at the cusp of an electric mobility revolution, where innovation and sustainability converge. As investors double down and the Government lays a solid foundation with policy incentives, the EV sector is no longer just an opportunity—it’s the future of transportation.