Sales of plug-in electric vehicles (PEVs) in India have been minimal due to a myriad of factors, the report notes: little domestic production; the high cost of vehicles; a lack of government commitment; an often unstable power grid; and almost no formal charging infrastructure.

With years of investment required from the public and private sector, the growth of the market will be limited in the short term. The government’s sporadic support for EVs has caused many companies that began to produce EVs to halt production, and in some cases cease operations, the report notes.

Yet, trends in the country’s demographics, traffic patterns, and natural resources suggest enormous potential. India is projected to add a staggering 352 million people by 2035. Meanwhile, the significantly younger population is expected to propel the country’s share of global gross domestic product (GDP) from its current 5% to 11% by 2035. In addition, estimates by the Indian government and industry foresee India becoming the third-largest market for cars in the world by 2020. The country’s dense urban centers and short yet congested commutes make it a natural fit with the relatively low power density of electric drivetrains.

—“Electric Vehicles in India”