Introduction to the Electric Vehicle (EV) Market

The electric vehicle (EV) market represents one of the most transformative and rapidly
evolving sectors in the global automotive industry. Driven by a growing emphasis on
sustainability, climate change mitigation, and the transition to renewable energy, EVs are
reshaping how people think about transportation. The market includes a wide range of
vehicles—from compact electric cars and two-wheelers to buses and trucks—powered
primarily by electric batteries rather than traditional internal combustion engines.

Governments worldwide are implementing policies and incentives to accelerate EV adoption,

while advances in battery technology, charging infrastructure, and vehicle performance
continue to enhance their appeal. Major automotive manufacturers, as well as startups, are
investing heavily in EV production, aiming to meet the increasing consumer demand for
cleaner and more efficient mobility solutions.

As the EV market expands, it plays a critical role in reducing greenhouse gas emissions,
lowering dependency on fossil fuels, and paving the way for a more sustainable future.

Conceptual Framework and variables of EVs

In recent years, many existing automobile manufacturer and new dedicated companies have
put a remarkable effort in transforming the conventional vehicle into an Electric Vehicle that
provides green and reliable solution. In terms of market share, EV demand is raising . It starts
replacing conventional vehicle In USA, Europe and Asia. With revolutionized perspective
and competitive price (Entry range), EV is a smart choice for any end user, however, an extra
effort is required to enhance the range of autonomy and vary applications . A vehicle which is
propelled by one or more electric motors and draws power from onboard electric source is an
electric vehicle. They are more durable and mechanically simpler than gasoline powered
vehicles. They produce less pollution than gasoline-powered vehicles. While HEVs tend to
reduce the emissions from internal combustion vehicles as a result of greater fuel efficiency,
they do not completely solve the problem. Electric vehicles on the other hand are much more
energy efficient, produce absolutely no tail pipe emissions and requires less maintenance as
compared to the conventional internal combustion engine (ICE) vehicles . However, the
reason the automotive industry has not gone pure electric or able to compete favorably with
existing gasoline cars, lies in the inherent problem of existing battery technologies.
The advantages of using electric vehicles over gasoline powered engines are as follows-
1. They do not create any pollution.
2. They are noise free.
3. They help us save fossil fuels.
4. They have high starting torque.
5. They can be charged at home without going to stations.
The above advantages have made electric cars popular in market and their numbers are
increasing day by day. The most common electrical energy storage device used in vehicles is
a battery. Batteries have been the technology of choice for most applications, because they
can store large amounts of energy in a relatively small volume and weight and provide
suitable levels of power for many applications. Shelf and cycle life have been a problem/
concern with most types of batteries, but designers have learned to tolerate this shortcoming
due to the lack of an alternative. In recent times, the power requirements in a number of
applications have increased markedly and have exceeded the capability of batteries of
standard design. An electric vehicle stores its energy on board- typically in batteries, but
alternatively with capacitors or flywheel storage devices. A more recent development is the
hybrid electric vehicle (HEV), which uses both an electric motor or motors and a gasoline or
diesel engine, which charges the batteries in order to extend the car's range and often to
provide additional power . Regardless of the energy source, an electric car needs a controller,
which is connected to the accelerator pedal, for directing the flow of electricity from the
energy source to the motor. This paper presents the brief overview on the concept of electrical
vehicle with its types. In last section we discussed about the evolution of electric vehicle.

TYPES OF ELECTRIC VEHICLE

Choosing a new vehicle can be difficult at the best of times, but it is even harder if you are
trying to get to grips with all of the different types of hybrid vehicles that are on the market.
The different types of vehicles are explained below-
Plug-in Hybrid Electric Vehicles (PHEV) vehicles also combine an electric motor with a
traditional internal combustion engine. However, plug-in electric motors are charged up by
plugging the vehicle into a special power station. These vehicles can work as both electric as
well as gasoline powered vehicles. When they are used for long range driver can switch it to
fuel powered when motor stops giving power. The average range for these vehicles when
they are being used in electric mode is around 35 miles. When the vehicle is being used in
electric power mode, there are no tailpipe emissions; however emissions levels are standard
when the car is being driven in traditional fuel mode. This type of vehicle is ideal of city
driving, because they are most efficient when they are being driving in this environment.
Battery Electric Vehicles (BEV) consist of an electric motor which is power by a battery
connected to it. Battery is the internal source of energy in these vehicles. Battery gives these
vehicles advantage of operating with zero emission. A technology named ‘energy recovery’
technology is used in them. In this electric motor works as both a propulsion source as well as
a generator when braking and when vehicle moves down a slope and moves freely under
gravity. This increases the efficiency of vehicle . In traffic BEVs proves to be a good option
because of high torque of the electric motor that is transmitted to the wheels and the smoother
acceleration (and deceleration) compared to vehicles with internal combustion engines (ICE –
Internal Combustion Engine). BEVs are noiseless while operating the electric motor and they
don't produce pollutant emissions. These aspects make BEVs the ideal vehicles to be used in
cities and/or urban areas. But besides the above advantages, there are some disadvantages to
using BEVs:
1. High production costs.
2. Reduced overall size (compared to vehicles equipped with ICE).
3. Limited autonomy and top speed.
4. Large recharging time or the need for special charging places.
5. The lack of electric motor noise can cause traffic accidents (persons with hearing
disabilities,pedestrians,cyclists etc).
Development of commercial Electric Vehicle
Nissan Alliance reached 200,000 all-electric vehicles delivered globally, representing a 58%
share of the global light-duty all-electric market segment. The world's top selling all-electric
cars in 2014 were the Nissan Leaf (61,507), Tesla Model S (31,655), BMW i3 (16,052), and
the Renault Zoe (11,323). Accounting for plug- in hybrids, the Leaf and the Model S also
ranked first and second correspondingly among the world's top 10 selling plug-in electric
cars. All-electric models released to the retail customers in 2014 include the BMW Brilliance
Zinoro 1E, Chery eQ, Geely-Kandi Panda EV, Zotye Zhidou E20, Kia Soul EV, Volkswagen
e-Golf, Mercedes-Benz B-Class Electric Drive, and Venucia e30. The world's top selling
highway-capable electric car in history became the Nissan Leaf with over 200,000 units sold
in 2015. The Tesla Model S, with global deliveries of more than 100,000 units, is the world's
second best selling all- electric car of all-time. The Model S ranked as the world's best selling
plug-in electric vehicle in 2015, up from second best in 2014. Talking about the recent
developments Tesla Model 3 was unveiled on 31 March 2016. With pricing starting at
US$35,000 and an all-electric range of 215 mi (346 km), the Model 3 is Tesla Motors first
vehicle aimed for the mass market. Retail deliveries of the Chevrolet Bolt EV began in the
San Francisco Bay Area on 13 December 2016. In December 2016, Nissan reported that Leaf
owners worldwide achieved the milestone of 3 billion km (1.9 billion miles) driven
collectively through November 2016, saving the equivalent of nearly 500 million kg (1,100
million lb) of CO2 emissions. Global Nissan Leaf sales passed 250,000 units delivered in
December 2016. The Tesla Model S was the world's best-selling plug-in electric car in 2016
for the second year running, with 50,931 units delivered globally. In February 2017
Consumer Reports named Tesla as the top car brand in the United States and ranked it 8th
among global carmakers. Global sales of the Nissan Leaf achieved the 300,000 unit milestone
in January 2018.
Data showing comparison of sales share of plug-in hybrids and fully electric cars
worldwide.
EV Market analysis of India .
In a significant transformation, electric vehicles (EVs) are emerging as the future of
transportation in India. While Europe and the US grapple with uncertainty over EV adoption,
India’s EV market is forging ahead, following China’s lead by implementing supply- and
demand-side measures to kickstart the movement.

Currently, India’s EV market is relatively small, accounting for about 2.5% of all cars sold in
2024, with high prices and a limited charging network deterring potential buyers. However,
we anticipate rapid expansion driven by more affordable EVs, an extensive charging
infrastructure, and a shrinking price gap between traditional vehicles and EVs. The Indian
government has set an ambitious target for EVs to make up 30% of total passenger vehicle
sales by FY 2030, supported by plans for subsidies, financing options, and infrastructure
development. S&P Global Mobility estimates that India’s 2024 passenger EV production has
increased by 22.5% year-over-year, to about 125,500 units.

Government Initiatives Aimed at Accelerating EV Adoption.

The Indian government has launched several initiatives to promote EV adoption. One of the
most significant is the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles
in India (FAME) scheme, introduced in 2015. The FAME II program, which started in April
2019, focused on electrifying public and shared transportation.

Another key initiative, the Production Linked Incentive (PLI) scheme, launched in September
2021, aims to boost domestic manufacturing of advanced automotive technology products
and attract investments in the sector.

In March 2024, the government took a significant step by reducing EV import duties to
encourage local manufacturing. India slashed the import duty for EVs priced over US$35,000
from 100% to just 15%, so long as manufacturers commit to making substantial local
investments.

To bolster domestic manufacturing of lithium-ion (Li-ion) batteries and enhance EV

technology, the Indian government extended basic customs duty exemptions in the Union
Budget 2025 to 35 additional capital goods essential for EV battery production.

2025 sales surge for the Indian EV market.

Automakers in India are gearing up to launch a multitude of new EV models in 2025 that
promise longer driving ranges and faster charging times. BYD, Hyundai, JSW MG Motor,
Maruti Suzuki, M&M, Mercedes-Benz and Tata showcased their innovations at the Bharat
Mobility Global Expo 2025 in response to stricter emission requirements set to take effect in
2027.

We project that in 2025, production of battery-powered passenger vehicles in India will soar
by 140.2% year-over-year to approximately 301,400 units. This figure will account for about
6% of the estimated 5.16 million passenger vehicles India expects to produce this year.

The Future of EV Adoption in India,

With a strong emphasis on sustainable mobility, the Indian government has established
ambitious targets supported by industry participation and favorable policies, creating an
environment conducive to innovation and growth.

We expect total electric passenger vehicle production in India to surge to approximately 1.33
million units by 2030, accounting for about 20% of total passenger vehicle production in the
country.
Challenges to Meeting India’s 2030 EV Goals.

1. India’s journey toward achieving a 30% EV market share by FY 2030 is fraught with
challenges. The current EV penetration rate in India has seen modest growth of
approximately 200 basis points annually from FY 2021 to FY 2024. To meet the 2030
target, this rate must nearly double to 380 basis points per year.

2. Several state EV policies are nearing expiration, which threatens sustained investor
confidence. Moreover, the lack of a cohesive, long-term strategy has further derailed
momentum, leaving India far from its envisioned EV revolution.

3. The Electric Mobility Promotion Scheme (EMPS) 2024 aimed to boost electric two-
and three-wheelers but did not include electric passenger vehicles and buses. The
government's recent approval of two major incentive schemes marks a crucial step in
promoting electric buses and trucks, but the continued exclusion of electric passenger
vehicles from subsidy schemes raises questions about the government’s commitment
to achieving its FY 2030 target.
 4. The fleet electrification segment, which constitutes 15% of the total industry EV
portfolio, remains essential. However, after the government withdrew support, the
number of electric passenger vehicles used in the commercial fleet segment declined
sharply.

5. High initial costs present another significant barrier for consumers, because EVs are
typically priced 20% to 30% above their internal combustion engine (ICE)
counterparts. Coupled with India’s reliance on imported components and batteries,
these cost dynamics hinder the growth of the EV sector. Despite government efforts to
promote localization through various policies, the localization rate is not increasing as
expected.

6. Moreover, the lack of adequate charging infrastructure continues to pose a formidable

challenge. Although the number of public charging stations has risen dramatically,
disparities persist, particularly in Tier-2 cities and rural areas. This uneven growth
contributes to range anxiety among potential buyers, further complicating the
transition to electric mobility.

Analysis of EV Market of USA.

The US Electric Vehicle Market size was valued at USD 38.18 Billion in 2023 and the total
US Electric Vehicle Market revenue is expected to grow at a CAGR of 25.4% from 2024 to
2030, reaching nearly USD 233.46 Billion by 2030.
The U.S. electric vehicle industry has experienced remarkable growth in recent years, with
electric car sales expanding from a mere 0.2 percent of total car sales in 2011 to an
impressive 4.6 percent in 2021. Despite an overall contraction of the new vehicle market by
approximately 8% in 2022, EV sales outpaced the industry, reaching over 800,000 units for
the first time, marking a substantial 65% increase from 2021. This surge in EV adoption is
expected to continue, with estimates suggesting that the market is on track to surpass 1
million units by November 2022.

In the United States, new electric car registrations totalled 1.4 million in 2023, increasing by
more than 40% compared to 2022. While relative annual growth in 2023 was slower than in
the preceding two years, demand for electric cars and absolute growth remained strong.
The outlook for electric vehicle sales in the United States reflects a mixed landscape of
challenges and opportunities. Amidst the headwinds of negative press and a slowdown in the
growth rate, the trajectory remains upward. Major automakers such as Ford and General
Motors have scaled back production targets in response to softening demand, a trend that
mirrors the global market situation.
Approximately 80% of electric vehicle charging takes place at home, but access to reliable
and convenient workplaces and public charging stations is crucial in supporting EV
customers, which significantly boost the US Electric Vehicle Market growth. As of the close
of 2022, the United States boasted around 136,000 EV charging ports. By year's end 2023,
this figure had risen by 21%, reaching an estimated total of 165,000 charging ports
distributed across more than 61,000 stations nationwide.

US Electric Vehicle Market Competitive Landscapes:

The U.S. electric vehicle market is undergoing significant changes, driven by a combination
of Tesla's continued dominance and the emergence of new players targeting niche markets.
Tesla, with a staggering US electric vehicle market cap of over $760 billion, stands out as the
undisputed leader. The company's ability to consistently lower prices and maintain a strong
US electric vehicle market position is attributed to its unique supply chain strategy, in-house
software management, limited SKUs, and manufacturing agility. Tesla's use of silicon
carbide in its EV chips further distinguishes its technology.

Rivian, a California-based company, has successfully carved out its niche in the EV market
with a market cap of $18 billion. Notably, Rivian's strategic deals, such as the partnership
with Amazon for electric delivery vehicles, contribute to its success. The introduction of
innovative features like "camp mode" for electric trucks also showcases Rivian's commitment
to meeting diverse customer needs. Other automakers, including Hyundai, Kia, Mercedes-
Benz, Volvo, and BMW, are making strides in the U.S. EV market, gaining traction with
consumers to increase US Electric Vehicle Market demand.

General Motors (GM) aims to achieve profitability in its North American US Electric Vehicle
Market portfolio by 2025, anticipating a surge in EV adoption. The company plans to
aggressively pursue EV leadership, introducing multiple EVs in key segments and launching
a digital retail platform with U.S. dealers to enhance customer experience and reduce costs.

GM is strategically utilizing five assembly plants, BrightDrop's EV and software solutions,

and its battery cell joint venture Ultium Cells to secure a leading position in the EV market.
The company has also secured raw materials and focused on sustainability, all while
maintaining profitability in traditional vehicle segments. GM's comprehensive strategy
positions it as a strong contender in the competitive US Electric Vehicle Market.
Comparison and outlook of EV market of India and USA.

Market overview:-
1. India has an estimated sales of 2 million units whereas USA has reported a sales
figure of around 1.3 million units for the fiscal year of 2024.
2. India’s total market share of EV comprises of 7.7% of total vehicle sales and USA
comprises of 8.1% of total light vehicle sales.
3. The year on year growth of the Indian EV market is 25.4% and that to of United
States is 7.3%.
4. Current market size of the Indian EV market is $8.49 billion and United States is $70
billion.

Market Capitalization with regards to vehicle segment.

1. India sold 1.3 million EV’s which were two wheelers due to critical high motorcycle
usage whereas US dominates the passenger car market led by Tesla Ford and GM.

2. India comprises of the largest global market for three wheelers which is used for
logistics and last mile transport, whereas US mainly focuses on rapidly growing
segment of Suv and Truck, comprising of Ford f150 , Rivian

3. The passenger car market for EV in India is still nascent, which only comprises about
one lakh units sold, whereas the two and three wheeler market of US is very small
compared to India

Key drivers of growth for EVs for India and USA.

INDIA USA
Government schemes: FAME II, PLI, GST Federal & state EV tax credits (up to $7,500).
reduction
Rising fuel costs and pollution concerns. Climate policies encouraging zero-emission
vehicles.
Affordable electric scooters and rickshaws. Consumer demand for innovation and tech
features.
Domestic manufacturing push (e.g., Ola Electric, Automaker investments (GM, Tesla, Ford, Rivian).
Ather)
Major challenges faced by both nations in developing the EV
Infrastructure.
1. Charging infrastructure of India is limited, especially outside Metro city, whilst in
United States. It is improving but inconsistent in rural areas.
2. Affordability of electric vehicles is still pricier than that of internally combustible
engines in India, whereas high upfront cost is incurred by public despite incentives
provided by the government in US.
3. Consumer awareness of EV is growing in India, but it’s uneven, whereas USA has a
higher awareness but range anxiety exists
4. India faces supply chain issues regarding Battery materials and components, whereas
US is completed dependent on China for key minerals, such as lithium diode.

Future outlook of India and USA in developing EV sector.

1. India is pushing to expect a CAGR of 40% in EV market till 2030 and United States
is expected to make up a 50% of new vehicle sales to comprise of EV by 2030
2. Strong growth in electrical vehicles of two wheelers and three wheelers is expected in
India, whereas continued innovation in autonomous and connected EV’s is aimed to
be developed in United States
3. Focus on Battery swapping and make in India initiatives for the EV market in India
and push towards domestic battery production and recycling, and lessening the burden
of key materials from China is the main focus of United States.
4. Major Automotive entering EV segment such as Tata , Mahindra and Maruti in India,
whereas growth in Electric pickups and commercial fleets is the rising concern of
United States.