India, the world’s third-largest automobile market, contributes nearly 7% to GDP through the automotive sector. As part of its climate and energy transition, India is pushing electric mobility. By 2024–25, EVs accounted for 7.5% of total vehicle sales, signalling momentum, though still far behind global leaders like China.
Current status of EV adoption in India:
- EV Penetration: EVs formed 7.5% of total vehicle sales by 2024–25, driven by incentives and rising fuel costs.
- Segment-wise Growth: Electric two-wheelers dominate at 60%, due to affordability and urban suitability.
- Public Transport: Government plans 14,000 e-buses by 2026 while states like Delhi, Telangana, Karnataka scaling fleets.
- Policy Push: FAME II and transition to PM E-DRIVE have also boosted adoption of EVs.
- Manufacturing Focus: PLI for Advanced Chemistry Cells (₹18,100 crore) aims to build domestic battery capacity.
Key challenges hindering EV adoption:
- High Upfront Costs: EVs cost 20–30% more than ICE vehicles while affordable model options remain limited.
- Charging Infrastructure Gap: Only 1 public charger per 135 EVs vs global norm of 1:6–20.
- Battery Import Dependence: More than 90% lithium-ion cells are imported, exposing supply-chain and forex risks.
- Policy Uncertainty: Transition from FAME II to PM E-DRIVE and shifting import-duty rules affect investor confidence.
- Range Anxiety: Sparse fast-charging and long charging durations deter buyers.
- Low Awareness: Limited consumer awareness, weak resale markets, and constrained credit access.
Government Initiatives to Promote EVs:
- PM E-DRIVE: ₹10,900 crore; includes ₹2,000 crore for 72,000 chargers; BHEL as nodal agency with unified EV super-app.
- EV Manufacturing Policy, 2024: ₹4,150 crore minimum investment; reduced import duties with 50% domestic value addition in 5 years.
- PM e-Bus Sewa: 10,000 e-buses via PPP.
- GST Reduction: 5% on EVs and charging equipment.
Way Forward:
- Scale Battery Ecosystem: Accelerate domestic cell manufacturing and invest in solid-state, sodium-ion, and recycling.
- Expand & Standardise Charging: Build interoperable, rural-inclusive charging and promote battery swapping & BaaS.
- Policy Stability: Harmonise Centre–State EV policies and resolve GST inversion on components.
- Global Partnerships: Secure critical minerals such as Argentina for lithium.
- Integrate Green Hydrogen: Pilot fuel-cell EVs under the National Green Hydrogen Mission.
Conclusion:
A coordinated push combining stable policy, domestic manufacturing, charging expansion, and targeted electrification can turn EVs into a cornerstone of India’s energy security, climate action, and industrial growth.
‘+1’ Value Addition:
- EVs convert 60% of energy to wheels vs 17–21% for ICE vehicles.
- Even with coal-heavy grids, EVs emit 3× less CO₂ than petrol cars over lifecycle.
- China crossed 50% EV share in new car sales in 2024 via scale and infrastructure.
- Germany’s ELISA e-highway shows viability of electrified freight corridors.
- EV value chains can create 10 million jobs by 2030 as per NITI Aayog estimates.
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