New Delhi: The 2030 sustainability goal appears increasingly challenging due to the slow adoption of electric vehicles (EVs) in India. According to a recent study conducted by Deloitte, affordability and gaps in charging infrastructure are acting as significant hurdles for EV penetration among consumers in the domestic market. About 54 per cent of Indian consumers still consider ICE (Internal Combustion Engine) vehicles as their preferred fuel type over EVs or hybrids, stated Deloitte’s 2025 Global Automotive Consumer Study – India report. The Centre has set an ambitious target of achieving 30 per cent EV penetration in the passenger vehicle segment by 2030. “I think, for two-wheelers, it is possible, for three-wheelers we will obviously hit it, but for four-wheelers, it is going to be tough. At just 3 per cent in 2025, we don’t have a strong base — achieving 30 per cent in five years is a 10x leap, which is difficult,” said Rajat Mahajan, partner and automotive sector leader, Deloitte India, during the media roundtable on Tuesday.
The central government has introduced several schemes, including subsidies, easy financing options and focus on EV infrastructure development, to promote their uptake among consumers.
Hurdles for EV Adoption
According to the findings, over a third of Indian buyers cite high vehicle costs and battery replacement expenses as additional barriers. Charging time, lack of infrastructure, and limited driving range remain the key concerns for Indian consumers considering a switch to electric vehicles.
As per the report, a smoother path toward electrification may lie in hybrid vehicles. Interest in hybrids (HEVs + PHEVs) currently accounts for 33 per cent, with HEVs (Hybrid Electric Vehicles) at 21 per cent and PHEVs (Plug-in Hybrid Electric Vehicles) at 12 per cent. Despite various initiatives by the government and automakers, BEVs (Battery Electric Vehicles) make up only 8 per cent of the market.
Global Hybrid Trends
Globally, BEV sales declined over the past year, while hybrid adoption surged in countries like Japan and the US. India and China have recorded steady demand for BEVs in the past two years though in Japan and US, it has declined.
“This is very interesting because we do believe that more and more hybrids are going to become the bridge between ICE and BEV. The future may not necessarily be a complete BEV future as fast as we want it to be. Maybe hybrids are going to play that role,” said Atul Jairaj, partner – automotive sector, Deloitte India.
India currently offers limited hybrid models and imposes a higher GST rate — EVs are taxed at 5 per cent, while hybrids fall under the 48 per cent GST slab. India’s hybrid portfolio currently includes models like the Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder, Toyota Innova Hycross, Toyota Camry, among others.
Notably, 75 per cent of customers in the country expect to spend less than Rs 25 lakh on their next vehicle, yet many are open to paying more for an EV. This could be a positive signal for the EV market.
