Indian Mobility Market Expected to Double and Exceed USD 600 Billion by 2030, According to Google-BCG Report

The Indian mobility sector is projected to grow significantly, potentially exceeding USD 600 billion by 2030, according to a report from Google and Boston Consulting Group. The Think Mobility Report highlights that emerging areas like electric, shared, and connected mobility could contribute USD 100 billion to this market. However, the bulk of revenue will still come from traditional sources such as internal combustion engine vehicles, finance, and insurance.

Representative image

Electric vehicles (EVs) are gaining traction among consumers, with one in three considering them for their next purchase. Preferences differ between electric four-wheelers (E4W) and electric two-wheelers (E2W). E4W buyers seek advanced technology and exclusivity, while E2W buyers prioritise practicality and affordability.

Growth in Electric Vehicle Market

The share of electric four-wheelers is anticipated to rise to 15-17% by FY30 from 2.2% in FY24. Meanwhile, electric two-wheelers are expected to increase their market share to 35-40% from 5.4% during the same period. This growth reflects a shift towards more sustainable transportation options.

Despite the positive outlook, there are concerns among consumers regarding EV adoption. Approximately 51% of respondents cited the lack of charging infrastructure as a major issue. Additionally, 45% were worried about high vehicle costs, 31% about battery life, and 20% about the limited variety of models available for four-wheelers.

Consumer Preferences and Influences

The report also notes a significant shift in decision-making influence within the EV space. Women now account for 52% of decision-making in this sector, surpassing the 38% influence they have over internal combustion engine vehicle purchases. This change indicates a growing female influence in automotive decisions.

In India, there is an approximately 80% demand for features like infotainment systems, real-time parking assistance, and anti-theft measures. However, interest in globally popular connected features such as remote controls remains relatively low among Indian consumers.

Technological Advancements and Consumer Expression

As the market continues to evolve, high-tech solutions are increasingly seen as tools for personal expression. These technologies are designed to meet the varied preferences of different consumer segments. This trend underscores the importance of catering to diverse consumer needs through innovative solutions.

The Indian mobility industry is on a unique trajectory towards substantial growth by 2030. While traditional revenue sources remain dominant, emerging sectors like electric mobility are set to play a crucial role in shaping the future landscape of transportation in India.