Page 23 - Insurance Times May 2023

Electric Vehicle

Insurance in

India - A New
IIRM, Hyderabad Associate Professor

Ms. Ruchita. A
Dr. C. Vijendra
Student
Mileage IIRM, Hyderabad

The Indian electric vehicle market is expected to reach US$47 billion by 2026. The Indian
government is encouraging the use of electric vehicles through policies and incentives. India aims
to increase electric vehicle sales by 30% by 2030 and has introduced several incentive programmes,
including one for local battery manufacturing.

Overview of EVs in India According to the Economic Survey 2023, the domestic
electric vehicle market will grow at a compound annual
Electric vehicles (EVs) are rapidly gaining popularity around
growth rate of 49% between 2022 and 2030, with 10 million
the world due to their environmental friendliness and low
annual sales by 2030. General insurance companies, such
cost. India, one of the world's largest automobile markets,
as Bajaj Allianz General and HDFC ERGO, have set up
has seen an increase in the adoption of electric vehicles in
dedicated portals that offer specialised services for electric
recent years. Because of the increased adoption of electric
vehicles. The following graph1 below shows the predication
vehicles, India's insurance industry has had to evolve and
of India's electric vehicle market size from 2018 to 2040 in
adapt to meet the unique needs of electric vehicle owners.
USD Billion.
India saw a 404% increase in the sales of electric two-wheelers
between April and September 2022, and a 268% increase in
the sales of electric automobiles in H1 FY 2022-23.

The Indian electric vehicle market is expected to reach
US$47 billion by 2026. The Indian government is encouraging
the use of electric vehicles through policies and incentives.
India aims to increase electric vehicle sales by 30% by 2030
and has introduced several incentive programmes, including
one for local battery manufacturing.India electric vehicle
market is projected to grow from $3.21 billion in 2022 to
$113.99 billion by 2029 at a CAGR of 66.52% in forecast
period, 2022-2029.

The Insurance Times May 2023 21