According to a new analysis released on Tuesday, the clean mobility ecosystem in the nation is predicted to develop at a compound annual growth rate (CAGR) of 38% and reach $250 billion by FY30 as the government steps up its efforts to promote sustainable and clean transportation.
According to a survey by Praxis Global Alliance, the Indian mobility market is estimated to reach $1.2 trillion by FY30, with clean and electric mobility making up roughly 20% of the total market.
“India’s electrification of its transportation sector is a major economic opportunity as well as a step towards a sustainable future,” stated Aryaman Tandon, Praxis Global Alliance’s Managing Partner for Mobility, Energy, and Transportation.
In India, the ratio of EVs to charging stations is 9:1. The government has taken several steps to attain the 4:1 globally recognized benchmark ratio, including lowering the GST rates on EV chargers and making large FAME II appropriations (more than $120 million).
The survey stated, “India remains a beacon of resilience despite challenges faced by the global EV market due to geopolitical shifts and fluctuating manufacturing costs.”
The strategic location of the nation, in conjunction with favorable domestic conditions and a strong policy framework, fosters an atmosphere that is favorable to the swift adoption of clean mobility.
The results show that India’s focus on creating an ecosystem for clean transportation that is integrated not only increases the adoption of EVs but also encourages innovation in related areas including sustainable supply chains, battery technology, and charging infrastructure.
It continued, “This sector is seeing significant private equity and foreign direct investment (FDI), which is a key growth driver.”
Clean mobility product prospects are expected to reach $94 billion by FY30, with a significant increase in overall penetration reaching 23%.
In FY24, India will have a $450 billion opportunity in mobility services, of which more than 80% would come from logistics and transportation services.
The software solutions potential size is estimated in the research to be $0.37 billion in FY24 and is projected to rise at a compound annual growth rate (CAGR) of 27% to $1.58 billion by FY30.
