India sees Electric Car Sales Surge amid Iran War and Future Emissions Regulations
Interest in electric vehicles has increased in India as concerns about rising fuel costs related to the war in Iran force consumers to look for alternatives, and future emissions standards are expected to maintain this momentum after the current crisis ends, Nikkei reports.
In March, sales of electric vehicles increased by 82% year-on-year to 24,148 units, increasing annual sales to 233,246 units, up 87% from the previous year, thanks to new model launches, discounts and low taxes. Despite this, electric vehicles accounted for only 5% of total car sales in India, well below the double-digit figures in Thailand, Vietnam, and Indonesia, reflecting persistent obstacles such as the limited number of models available, weak charging station infrastructure, low resale value, and concerns about mileage.
Analysts note that the real long-term incentive will be stricter emission standards, which are due to come into force in April next year. They will require automakers to drastically reduce average carbon emissions in their fleets, and to set even tougher targets by 2032. To meet these requirements, the share of electric vehicles in sales could be about 10% by fiscal year 2028 and about 19% by 2032, potentially increasing annual sales of electric vehicles to half a million units within a few years and at least a million later. Therefore, automakers are accelerating the release of new models, but mass distribution will still depend on lower prices, as most Indian electric vehicles remain expensive SUVs, while cheaper liquefied natural gas vehicles continue to attract buyers who keep an eye on costs.