Report: Electric vehicles will cost 6 to 9 percent of total electricity generation by 2035

New Delhi| Electric vehicles (EVs) in India will consume a significant portion of the country’s electricity by 2035 according to a report by investment management firm IKIGAI Asset Manager Holdings. EVs are expected to reach 6 to 8.7 percent of India’s total electricity consumption by 2035, the report said. This shows the increasing use of EVs and their impact on the power grid.

“EVs in India, that is, electric vehicles, will consume about 6 to 8.7 percent of electricity by 2035”, the report said. The report also states that there is an increase in EV adoption globally. In 2023, EVs made up 18 percent of all car sales worldwide. China’s share in this was more than half. This rapid increase in EV use is also expected to have a significant impact on global electricity consumption.

The report predicts that with increased access to EVs, their share of global electricity consumption will increase from 0.5 percent in 2023 to between 8.1 percent and 9.8 percent by 2035. This increase in EV usage sends a message that countries like India need to prepare their infrastructure to meet their growing electricity demand.
As more people adopt electric vehicles, the power sector will need to expand capacity to efficiently meet new power needs.

The report also highlights another important issue for India – the increasing demand for cooling devices, especially air conditioners (ACs). With extreme temperatures continuing to rise across the country, demand for cooling solutions is expected to increase rapidly.

“Extreme temperatures in India are increasing the need for more cooling devices”, the report said. According to the data, India is expected to see a sharp increase in penetration of home appliances, especially ACs, in the next decade. The report notes that AC demand in India is projected to double by 2030 due to increased extreme heat. As temperatures continue to rise, more and more households are likely to invest in cooling equipment, increasing total electricity consumption in the country.