Volkswagen expects 1 in 4 cars in India to be an electric by 2030

German auto giant Volkswagen expects one in every four cars to be sold in India to be an electric by the close of this decade, against a share of less than 1.5% in 2022, and is chalking out plans to drive in a series of greens to cash in on the trend.

The company plans to introduce an India-assembled version of its ID.4 electric car over the next one year, following which it will launch a highly localised electric car that will be targeted at the mass market, VW country brand head Ashish Gupta told reporters. “We expect the Indian market to grow at a CAGR of 5-6% over this decade, and close 2030 with annual sales between 5 million and 5.6 million. Electrics will be 25-30% of this, and the volumes can be anywhere between 1.5 million and 1.8 million units,” Gupta further said.

In 2022, electrics were under 1.5% of the total car market of 3.8 million, and Tata Motors was the dominant brand and accounted for most of the sales. But with central and state governments continuing to push for electrics, companies are now going aggressive on the category with brands such as MG, Hyundai, Kia, Maruti and VW-Skoda also planning new models.

Gupta said the testing of the ID.4 has already begun in India, and plans are to get the car through the ‘parts and components’ or the local assembly route. “My ambition is to get in the car for under Rs 50 lakh.” Volkswagen had in March released a global concept of an affordable electric car called ID.2all in Germany, and a version of the same is likely to be worked out for India by 2026-27 when it gets a worldwide launch.