India’s automotive industry is in a renaissance, driven by innovation and a commitment to sustainable mobility. Recognising its role in reducing carbon emissions, India has made significant commitments under the Paris Agreement and COP26.
As a leading global automotive manufacturer, India plays a crucial role in shaping the future of passenger and goods transportation, which accounts for 12 per cent of its energy-related CO2 emissions. Under the EV30@30 vision, India aims to have 8 crore EVs on the road by 2030, promoting domestic production to boost self-sufficiency. However, according to the Ministry of Commerce, in 2024, ~44 lakh EVs were registered across vehicle segments in the country.
In 2024, EVs accounted for over 7 per cent of India’s total vehicle sales, primarily driven by electric three- and two-wheelers, with sales penetration at 21.4 per cent and 6.2 per cent , respectively. In contrast, passenger cars and commercial vehicles lagged at 2.5 per cent and 1.7 per cent , despite record sales.
According to Deloitte’s Global Automotive Consumer Survey, the time required to charge (cited by 39 per cent of respondents), lack of public charging infrastructure (38 per cent ) and driving range (35 per cent ) remain significant challenges for EV adoption in India. These issues could be mitigated by developing sufficient charging stations and robust infrastructure, drawing lessons from countries such as Norway, where infrastructure expansion outpaced EV adoption, and EV penetration for new car sales was 89 per cent in 2024. The government played a key role by implementing public tenders through a state enterprise, creating a network of chargers with capacities exceeding 50kW along highways.
Another example is the Netherlands, where government policies have supported the rapid adoption of smart charging to optimise charging times, ease grid pressure and utilise renewable energy. The Netherlands is embracing renewable-linked smart charging, dynamic tariffs and advancing towards bi-directional charging (V2G) and is on track to 100 per cent of public transport buses being zero-emissions by 2030.
As targeted by the government, if the EV car sales penetration reaches around 30 per cent by 2030, this will necessitate the deployment of ~56–58 lakh public chargers. Nearly 18–20 per cent of these chargers need to be fast chargers. India has established just over 25,000 Electric Vehicle Public Charging Stations (EVPCs). Countries globally are significantly ramping up charging infrastructure, with China planning a 2:1 vehicle-to-charger ratio, Europe seeking to achieve a vehicle-to-charger ratio of less than 10:1 by 2030 and the US currently at 20:1 with most EV owners depending on home chargers. India is likely to be somewhere in the middle, where a significant number of owners use public charging with a decent home charging penetration as well.
To make EVs more cost-effective and encourage adoption, reducing reliance on imports and focusing on local production of battery cells contribute to more than 40 per cent of an EV’s total cost. The EV battery pack is a key concern due to insufficient domestic manufacturing of lithium-ion cells, high production costs and lack of technological expertise. The PM E-Drive scheme, with an outlay of ₹2,000 crore (double the allocation of FAME II), is dedicated to developing public charging infrastructure, including subsidies to cover upstream infrastructure costs. While the government has taken steps to improve charging infrastructure, schemes around advanced battery technology PLI and waiving off import duties on battery components will accelerate localisation and hence reduce the overall cost of the battery.
A pincered approach is essential for increased EV adoption across the ecosystem. Strengthening charging infrastructure could see the rise of public-private partnerships, while improved battery technology could alleviate concerns around charging time and driving range. Adopting global best practices at a policy level will enable the automotive industry to accelerate towards customer acceptance and achieve India’s sustainability goals.
