According to a report by IKIGAI Asset Manager Holdings, an investment management firm, electric vehicles (EVs) in India are expected to account for a substantial portion of the nation’s electricity consumption by 2035.
The electric vehicles (EVs) in India are poised to consume a substantial portion of the country’s electricity by 2035, according to a report by IKIGAI Asset Manager Holdings, an investment management firm. The report predicts that EVs will represent between 6 and 8.7% of India’s total electricity consumption by that year, indicating the increasing adoption of EVs and their significant impact on the national power grid.
The study also noted that on a global scale, the uptake of EVs is accelerating. In 2023, EVs constituted 18% of total car sales worldwide, with more than half of these sales occurring in China. This surge in EV utilization is expected to notably affect global electricity demand.
It is estimated that as EVs continue to penetrate the market, their contribution to global electricity consumption will grow from 0.5% in 2023 to between 8.1% and 9.8% by 2035.
This escalation in EV usage underscores the necessity for countries, including India, to enhance their energy infrastructures to accommodate the rising demand. With an increasing number of people turning to electric vehicles, the power sector must bolster its capacity to efficiently meet these new electricity requirements.
Furthermore, the report sheds light on another pressing challenge for India—the escalating demand for cooling devices, especially air conditioners (ACs). With more frequent extreme temperatures across the nation, there is an expected sharp rise in the need for cooling solutions.
Data suggests a significant growth in the penetration of household appliances, particularly ACs, in India over the coming decade.
The demand for ACs in India is anticipated to double by 2030, propelled by the increase in extreme heat. As temperatures continue to climb, an increasing number of households are expected to invest in cooling devices, which will further elevate the overall electricity consumption within the country.
