Operational Electric Vehicles In India To Reach 28M By 2030

India is witnessing a significant shift towards decarbonization, with the electric vehicle (EV) market growing rapidly, fueled by a combination of demand and supply incentives, rising consumer awareness, and ongoing infrastructure development. The India Energy Storage Alliance (IESA) recently projected that the number of operational electric vehicles in the country would surpass 28 million by 2030. This surge in EV adoption is expected to be driven by several factors, including increasing environmental consciousness, advancements in battery technology, and the accessibility of charging stations across the country.

The total sales of electric vehicles in India crossed 4.1 million units during fiscal 2023-2024, demonstrating an upward trend of increasing consumer demand for cleaner modes of transportation. According to the IESA's forecast, e-2wheelers will be India's most sold, accounting for as much as 83% of the sales. A sales volume of about 10% will consist of e-4wheelers and 7% of the commercial vehicles, including three-wheelers, trucks, and buses.

The rise in electric vehicles is also contributing to a surge in electricity consumption. India’s electricity usage reached 1,543 TWh in 2023-2024, reflecting a 7% increase from the previous year. This is coupled with a substantial increase in the energy consumed by public charging infrastructure, which saw a jump from 204 GWh in 2022-2023 to 465 GWh in 2024. As the majority of EV users prefer home charging, the energy demand for EVs is expected to continue its upward trajectory, with estimates suggesting a demand of 4,000 GWh in FY 2024-2025, which could rise to 38 TWh by FY 2031-2032. This increase is expected to create a significant pressure on the power grid, with the maximum power demand forecasted to reach 366.4 GW by 2032.

To address this surge in energy consumption, the Ministry of Power (MoP) has developed the National Electricity Plan, a strategic roadmap designed to ensure energy security over the next decade. India, being the third-largest producer and consumer of electricity globally, has projected that the country’s total annual power demand will reach 2,133 TWh by 2031-32. Of this, the IESA estimates that EV charging alone will contribute approximately 3% to the total demand.

The growth of India’s electric vehicle market will necessitate a substantial increase in power generation capacity. The total installed capacity of India’s power grid, which stood at 466 GW in January 2025, will need to rise to 900 GW by 2032, with 500 GW of this coming from renewable sources like wind and solar. To support the growing demand for EV charging infrastructure, the National Electricity Plan aims to increase the number of charging stations across the country to 100,000 by 2030, a substantial rise from the current 34,000 stations.

One of the key challenges in managing the growing demand for electricity from EVs will be addressing peak energy usage during off-peak hours. It is anticipated that about 70% of e-4wheelers and e-2wheelers will be charged during off-peak periods, particularly after 8 p.m., while electric trucks are expected to be charged mostly during the day. In the case of electric buses, which mostly operate at night for intercity travel, daytime charging will be preferred. Overall, peak charging demand is expected to occur between 9 p.m. and 5 a.m. and from 12 p.m. to 2 p.m.

The IESA report highlights an important concern for grid capacity: the peak energy demand will occur when renewable energy sources, such as solar and wind, are unavailable. This underscores the necessity of integrating Battery Energy Storage Systems (BESS) to store excess renewable energy and help meet peak demand. The grid will require an additional 47 GW/237 GWh of BESS capacity, along with 26 GW of pumped hydro storage, to ensure reliable power supply during peak times.

To help achieve energy security and meet the needs of the growing EV market, the Ministry of Power is also focusing on initiatives such as the Integrated Local Energy Systems project, which involves integrating various energy sources, including electricity, heating, cooling, and waste management. This initiative, in partnership with the European Union, aims to optimize energy use by leveraging batteries and electric vehicles, making them integral components of the grid.

Another significant development in the energy sector is the promotion of “smart charging” for electric vehicles, which is based on the Vehicle-to-Grid (V2G) concept. This technology allows electric vehicles to interact with the grid, either charging or discharging in response to signals or dynamic pricing. The integration of such technologies will play a crucial role in balancing energy demand and ensuring grid stability as India moves toward its ambitious goals of EV adoption and energy transition.

India’s drive to accelerate EV adoption and enhance its renewable energy capacity is a critical part of its broader strategy to reduce carbon emissions and achieve energy security. The country’s ability to meet the rising demand for electricity, while managing its grid infrastructure and integrating renewable energy sources, will be essential for supporting the rapid expansion of the electric vehicle market and ensuring sustainable growth in the coming decades.