India to Become World’s Fourth-Largest EV Producer by 2030: Rhodium Group Report

India is on track to become the world’s fourth-largest producer of electric cars by 2030, according to a new report by U.S.-based consultancy Rhodium Group. With a projected annual manufacturing capacity of 2.5 million electric four-wheelers, India is expected to rank behind only China, the European Union, and the United States in the global electric vehicle (EV) manufacturing landscape.

The report highlights a significant jump from the current production capacity of just 200,000 EV units per year. This projected growth is backed by a strong policy push from the Indian government, robust investment interest, and rising domestic demand. India’s National Electric Mobility Mission and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme have played a central role in accelerating this transition.

In a bid to attract global automakers, the Indian government recently announced a major tariff reduction. Import duties on completely built EVs priced above $35,000 have been cut from 70% to 15%, provided the manufacturer commits to setting up local production facilities with a minimum investment of USD 500 million within three years. This has prompted several international and domestic companies to consider expanding their EV portfolios in India.

Market research firms are bullish on India’s EV outlook. According to IMARC Group, India’s EV market is expected to grow at a compound annual growth rate (CAGR) of over 57% and reach a valuation of USD 164 billion by 2033. Another estimate by Grand View Research projects a CAGR of 41.7% until 2030, forecasting the Indian EV market to reach USD 8.5 billion by the end of 2024.

State-level policies are also driving momentum. Uttar Pradesh, for example, has introduced subsidies, road tax exemptions, and funding for charging stations to create a more EV-friendly environment.

Experts believe this shift is being fueled by several factors: rising fuel costs, improved battery efficiency, expanded charging infrastructure, and increased environmental awareness among consumers.

With these developments, India is rapidly emerging as a global hub for electric mobility. If current trends hold, the country’s EV sector will not only boost manufacturing and job creation but also play a pivotal role in achieving climate goals and reducing urban air pollution.