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India's EV Sales Could Reach 22 Million Units By 2035: Report
India's EV Sales Could Reach 22 Million Units By 2035: Report
Electric vehicle (EV) sales in India could reach 22 million units by 2035, with EV penetration crossing 50 per cent across most vehicle segments, a report said on Monday.
New Delhi: Electric vehicle (EV) sales in India could reach 22 million units by 2035, with EV penetration crossing 50 per cent across most vehicle segments, a report said on Monday. This growth will be supported by favourable demand dynamics, strengthening supply chains, and progressive regulatory drivers positioning India firmly on the path to a cleaner, more sustainable future.
KPMG India, in its report, highlighted that India can transform potential supply chain risks into opportunities for leadership in sustainable mobility. With demand for critical raw materials such as lithium, nickel, cobalt, and rare earth elements set to rise sharply, one of the big four global professional services networks noted that India should think of strategies for building resilience and competitiveness in the nation's EV ecosystem.
EVs use six times more minerals than conventional vehicles, hence demand for lithium, nickel, cobalt and rare earths has exponential growth potential amid a surge in global EV adoption. According to the report, over 70 per cent of global refining capacity for critical minerals is concentrated in a few geographies, creating geopolitical and trade risks.
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Meanwhile, exploration of reserves in states such as Jammu and Kashmir (J&K), coupled with domestic processing and recycling initiatives, can reduce import dependence. The report pointed out that in such a scenario, imperative policies, including incentivising domestic refining, securing long-term supply contracts, and investing in R&D for alternative chemicals, can turn out to be critical steps.
“India's EV ambitions hinge not just on manufacturing capacity but on securing the raw material backbone. Without resilient supply chains, the transition risks being delayed or derailed," said Rohan Rao, Partner, Automotive and Lead–Electric Mobility, KPMG in India.
India's EV success story will depend on how effectively the nation addresses the raw material challenge, the report emphasised.
By combining domestic initiatives with global collaborations, India can secure its supply chain, reduce vulnerabilities, and position itself as a leader in sustainable mobility.
Raghavan Viswanathan, Partner, Deal Advisory, KPMG in India, noted, “Strategic investments in exploration, refining, and recycling will be pivotal. India must act now to build partnerships and capabilities that ensure long-term competitiveness in the global EV ecosystem.”
Source: ZeeNews
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