'EV market may cross 1 crore annual sales by 2030'

New Delhi: India's electric vehicles (EV) market is expected to grow to one crore units annual sales by 2030 and create 5 crore direct and indirect jobs, according to the Economic Survey 2022-23.

The survey tabled in Parliament on Tuesday said that in December 2022, India became the third-largest automobile market, surpassing Japan and Germany in terms of sales.

"The automotive industry is expected to play a critical role in the transition towards green energy. The domestic EV market is expected to grow at a compound annual growth rate (CAGR) of 49 per cent between 2022 and 2030 and is expected to hit one crore units of annual sales by 2030," it said.

As per industry estimates, the total EV sales in India stood at around 10 lakh units in 2022.

Further, the survey said, "The EV industry will create 5 crore direct and indirect jobs by 2030. To support and nurture this development, the government has undertaken multiple steps". The pre-Budget document also highlighted that the automobile sector is a key driver of India's economic growth. "In December 2022, India became the 3rd largest automobile market, surpassing Japan and Germany in terms of sales," it added. In 2021, India was the largest manufacturer of two-wheeler and three-wheeler vehicles and the world's fourth-largest manufacturer of passenger cars.

"The sector's importance is gauged by the fact that it contributes 7.1 per cent to the overall GDP and 49 per cent to the manufacturing GDP while generating direct and indirect employment of 3.7 crore at the end of 2021," it said.