India's electric car penetration to surge to 9 per cent by FY30: Nomura Report

The penetration of electric cars in India is projected to rise significantly, reaching 9 per cent by FY30 from the current 2 per cent, according to a report by Nomura.

This shift is part of the country's broader transition toward sustainable and eco-friendly mobility solutions. The report highlighted that electric vehicle (EV) penetration in passenger cars has remained stagnant at around 2 per cent over the past two years. It said "EV penetration in cars, which has been around approximately 2 per cent over the past two years, it is expected to grow to 5 per cent by FY27 and further to 9 per cent by FY30.

Similarly, the adoption of electric two-wheelers (2Ws) is predicted to rise from 5.8 per cent in FY25 to 10 per cent by FY27 and 20 per cent by FY30.

The report emphasised that success in the EV segment is crucial for automakers to meet future Corporate Average Fuel Efficiency (CAFE) norms and maintain long-term competitiveness and sustainability.

Companies are now focusing on developing production-ready, affordable EV models to drive adoption. The recently concluded Bharat Mobility Expo 2025 showcased India's evolving automotive landscape, signaling a clear shift toward electric mobility. Exhibitors demonstrated a strong commitment to eco-friendly and technologically advanced vehicles, setting the stage for a greener and more connected future in Indian mobility.

It said "As the Indian automotive market evolves, launches at recently Bharat Mobility Expo 2025 signal a dynamic shift toward eco-friendly and technologically advanced vehicles”. Additionally, the Auto Component Expo underscored advancements in newer technologies such as Advanced Driver Assistance Systems (ADAS) and EV components. The report noted that the content per vehicle is expected to increase significantly due to premium features and innovations. These include advanced lighting systems, interior plastics, touch-based switches, gear shifters, and more sensors for ADAS

For EVs, suppliers are focusing on integrated solutions, such as 3-in-1, 5-in-1, and 7-in-1 axles for both four-wheelers and two-wheelers. These innovations are expected to enhance efficiency and affordability, further boosting EV adoption.

The report highlights that India's automotive industry is gearing up for a transformative decade, with electric mobility taking center stage in shaping a sustainable future.