India’s demand for electric cars will drive half of all growth in the global car market between now and 2030, according to a new report by Morgan Stanley.

The figures suggest India will rival China — which now accounts for more than half of all global sales of electric cars according to the International Energy Agency’s Global EV Outlook 2018.

About 2.2 per cent of China’s car sales are electric right now — but the Asian powerhouse is aiming to increase that to 40 to 50 per cent by 2030.

There are about 3 million electric cars in the world right now — but if “policy ambitions continue to rise to meet climate goals”, that number could hit 220 million by 2030 — including 130 million electric and 90 million hybrids, the agency says.

India is regarded as having less co-ordination in its electric car policies, though the country is aiming for 30 per cent of car sales to be electric by 2030, the agency reports.

In a new report, Morgan Stanley now expects half of the cars on India’s roads will be electric by 2040.

India’s adoption of battery-powered cars will accelerate due to environmental concerns and growing population.

“The drive toward cleaner air could be setting the stage for the transformation of mobility in India and the auto industry worldwide,” Morgan Stanley reports.

The pivot to electric — along with factors such as autonomous driving — “could potentially help drive half of the incremental global car demand over 2017-30 and position India as a key player in the evolution of auto manufacturing.”

That’s good news not only for the local population — but for ASX-listed explorers focused on battery metals such as lithium, cobalt, nickel and graphite – given that electric and hybrid cars are now the biggest driver of the battery market.

“To confront the ongoing challenges of pollution and urbanisation, India will need to transition to electric vehicles, shared mobility and autonomous driving,” said Ridham Desai, head of India research.

Morgan Stanley predicts 30 per cent of new vehicle sales in India could be electric-powered by 2030 compared to zero in 2017.

Meanwhile, 36 per cent of cars sold in India will be autonomous by 2040.