Electric vehicle sales in India could reach 22 million units by 2035, with EV penetration expected to exceed 50 per cent across most vehicle segments, according to a report by KPMG India released on Monday.
The report said growth would be driven by strong demand, improving supply chains and supportive regulatory policies.However, it cautioned that India’s progress will depend on how effectively it addresses supply chain risks linked to critical raw materials such as lithium, nickel, cobalt and rare earth elements, which are used in far higher quantities in EVs than in conventional vehicles. The report noted that more than 70 per cent of global refining capacity for these minerals is concentrated in a few regions, posing geopolitical and trade risks.KPMG said India could reduce import dependence through domestic exploration, including reserves identified in Jammu and Kashmir, along with investments in processing and recycling. It added that policies promoting local refining, long-term supply agreements and research into alternative materials would be crucial.“India’s EV ambitions hinge not just on manufacturing capacity but on securing the raw material backbone,” said Rohan Rao, Partner, Automotive and Lead–Electric Mobility at KPMG in India. Raghavan Viswanathan, Partner, Deal Advisory, said strategic investments in exploration, refining and recycling would be key to ensuring long-term competitiveness in the global EV ecosystem.
