How big
is the opportunity?
In FY24, India’s electric mobility market accounted for
only 5% of India’s ~US$ 650B mobility market. This share is
expected to increase 7x to ~US$
240B by FY30. Beyond vehicle sales, ecosystem solutions like charging, financing,
and leasing are also expanding quickly, signalling a broader transformation in
how vehicles are powered, financed, and managed.
Exhibit 2: Electric mobility
ecosystem opportunity in India
The products segment is expected to become ~US$ 94B
(40%) opportunity by FY30, led by auto components. Services segment represents
an additional ~US$ 144B (60%) opportunity, led by ecosystem solutions. A
detailed breakdown of these opportunities is shown below (Exhibit 3):
Exhibit 3: Electric mobility
ecosystem opportunity in India (FY30)
Where is
the profit?
While the opportunity is large and growing, profits are
not evenly distributed across segments. India’s electric mobility sector is
expected to generate US$ 25-30B in profit in FY30. The profit pool is
expected to shift from traditional vehicle sales to high-margin areas such as
services, infrastructure, and digital platforms.
Among products, auto components are set to lead, followed
by two-wheelers. On the services side, transportation will be the largest
contributor, followed by logistics. Software platforms for fleet and battery
management will also emerge as a strong profit engine, with high EBITDA margins
of 30-40% (Exhibit 4).
Exhibit 4: EV ecosystem profit
pool (FY30)
What does
the EV transition mean for stakeholders?
Stakeholders across the value chain, such as OEMs,
component manufacturers, fleet operators, financiers, and others, will need to
realign their strategies to unlock value in the evolving EV landscape. OEMs
must transition to comprehensive EV portfolios, localise production, invest in
R&D, and brand-building while expanding into adjacent areas like financing
and battery services. Component manufacturers need to modernise production
capabilities and scale export capacity while preparing for battery recycling
and aftermarket demand.
Logistics and fleet operators should prioritise EV fleet
adoption while building supporting tech and infrastructure. Financial
institutions must adapt by developing tailored EV loan products, improving risk
models using real-time data, and adopting new-age solutions such as leasing
models to meet demand. For ecosystem players, including charging, leasing, and
software providers, the focus must be on rapid innovation, capital access, and
scaling early in areas like B2B mobility and energy services. Long-term profits
will accrue to those who act early and align with the evolving ecosystem.
Conclusion
As India approaches its 2030 electrification goals,
electric mobility is transitioning from a policy-driven to a market-led sector.
Segments such as electric two-wheelers, EV financing, leasing,
software platforms, and battery solutions are emerging as growth and profit
engines. Over the next five years, leaders will be those who invest early,
localise capabilities, scale operations, and integrate across vehicle, energy,
and service layers. The future of profitability in Indian mobility will be both
electric and ecosystem driven.
For a deeper dive, refer to the full report- Electrify30:
The Future of Mobility