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Driven by conducive government policies and incentives towards a green future, India now has more than 150 two-wheeler electric vehicle (EV) startups, a new report said on Wednesday.

According to an analysis by global investment advisory firm Bernstein, the Indian EV segment is expected to grow 15-20 times to reach annual sales of 15-20 million units over the next decade.

“Around 85 per cent of the 65 models launched last year were such products -- high-speed as against speed and range-constrained products, which used to be a feature of the startups,” according to the Bernstein report.

“The average battery capacity for new launches increased from 2.3 kWh (kilowatt-hour) in 2022 to 3 kWh,” the analysis noted.

TechCrunch was first to report on the Bernstein analysis. The new EV manufacturing policy, announced by the Central government last week, aims to not only attract global players to India but also stress on domestic value addition.

The new policy sets the stage for a vibrant future-mobility global manufacturing hub in the country.

The policy fixes a minimum investment of Rs 4,150 crore for foreign companies who want to set up EV manufacturing facilities in the country.

The Indian EV market is experiencing notable expansion, with a particular focus on meeting the surging demand for cleaner transportation, which is also necessitating a parallel expansion of charging infrastructure to cater to escalating demand.

The country may see 1 crore EV sales annually by 2030, generating nearly 5 crore jobs, according to Nitin Gadkari, Union Minister of Road Transport and Highways.