India is deeply committed and resilient towards mitigating climate change impact, effects of environmental issues, carbon-free transportation, and mobility through a mass transition from conventional mobility operators to electric based vehicle system. In this regard, India has rapidly embraced the adoption and adaptation of electric vehicles (EV). India’s pathways towards green, clean, and affordable transportation are realized through the launch of electric vehicles backed by significant investments, production linked schemes, adaptable consumption, financed manufacturing and worldwide sales.
In recent times, the electric vehicles market has drastically magnified. According to the Press Information Bureau, the number of registrations of electric vehicles have increased to almost 16 per cent from July 2024 (Ministry of Heavy Industries, 2024). Some of the major driving forces for heightened demand for electric vehicles include proposed incentivizing, shifts in consumer choices, global commitments towards carbon-neutral efforts and differential EV adaptation in urban areas. Increase in demand has been attributed to the government induced incentivizing of electric vehicles under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) which subsidizes the purchase of electric scooters, cars, and bikes, thereby increasing consumer readiness towards effective EV adoption (Admin, 2024).
Additionally, the spread of Eco-consciousness among Indian consumers through greater environmental campaigns has led to influx of electric vehicles into the vehicle markets in India, altering vehicle options and consumer choices. Moreover, financing of carbon-neutral technologies, electricity-based projects and battery advancements through effective policy making have prompted adoption of EV. This is clear from the promotion of the E-Vehicle Policy attracting duration-based investments in innovative technologies in green mobility (Ministry of Heavy Industries, 2024). Finally, there has been noticeable differences in adaptation of EVs between primary and secondary cities, wherein the latter transcended the earlier ((Business Standard, 2024). For instance, Jaipur consumers have purchased almost 2,300 electric cars in 2023 exceeding the metropolitan cities (Business Standard, 2024).
India’s EV landscape includes automotive industry hubs, automobile manufacturing units, businesses, and start-ups. Tamil Nadu covers about 70 per cent of the overall EV production including scooters, cars, and bikes, enabling a production potential of 10 million units through industry collaborations, government partnerships and using production linked schemes (Business Standard, 2024). Examples include, the approval of the scheme for manufacturing of electric passenger cars in a large scale to transit the public transportation ecosystem through reduced public utility charges, EV charging costs and ease of licensing process (Ministry of Heavy Industries, 2024). Moreover, with boosted consumer readiness for electric vehicles, the EV Industry is forecasted to grow approximately 40 per cent by 2027 and sales exceeding over 10 million by 2030 (Economic Times, 2024). The EV landscape in India paves the future of sustainable mobility, green public transportation, and carbon-neutral technological systems.
Despite, high investments, boosted sales, subsidized production costs and skyrocketing demand for EVs, the EV ecosystem in India faces production constraints, infrastructural limitations, prolonged charging time and inhibited consumer confidence on EV. Some of the impediments to ease of adoption and adaptation of EVs in India include.
- Production Constraints: One of the key components in EV production include batteries based on critical minerals such as Lithium, Nickel, Cobalt, and Silicon chips which are currently imported to manufacture EVs from China, Korea and Taiwan (S. Kumar, 2022). The Production Linked Incentive Scheme which has proposed to fund for local manufacture of batteries starting from 2025, has price differentials leading to imperfect EV market and the global supply chain disruptions have resulted in halt of imports of primary parts such as ion batteries, chips and technologies significantly impacting the production (S.Kumar, 2022). Additionally, India’s source of production of electricity depends on coal, questioning the sustainability of production of EV (Bharadwaj, 2023).
- Prolonged Charging Time: Comparable to a traditional operating system, EVs take 8 hours to charge from 7Kw starting point to reach full capacity depending upon the battery size (Correspondent et al., 2023). While the traditional vehicles charge through Petrol, Diesel, and Compressible Natural Gas (CNG) at the fuel stations, EVs rely on charging stations, leading to a restrained charging points and charging time have impeded the potential and refueling capacity of EV (Correspondent et al., 2023)
- Infrastructural Limitations: The source point for EVs is EV refueling stations, also commonly called as Public Charging Stations. According to the Ministry of Heavy Industrials, India currently equips about 16,244 EV charging stations (Ministry of Heavy Industrials, 2024). India needs to fasten the increase of EV charging infrastructure, especially in public spaces, national highways, Outer Ring Roads, distant villages, rural areas, and tertiary cities (Agarwal, 2023). Several startups and automotive industry leaders have expanded their business towards building EV infrastructure along with the EV manufacturing (Correspondent et al., 2023). Despite the integration of EV charging systems into conventional fuel stations, the accessibility of charging stations in remote locations is questioned.
- Inhibited Consumer Confidence: Even with the skyrocketing sales of EV in India, the confidence of consumers in adapting EVs has seen a slow growth. Areas include the fear of exhaustion of battery, finding charging stations, and charging time have dampened the trust of consumers (Correspondent et al., 2023). Moreover, public safety has been an issue of concern with the increased reports of fire accidents and battery malfunctions (Correspondent et al., 2023). On top of that, consumers also ponder on the exchange value of EV, EMI options and service charges which are more and in-affordable compared to conventional vehicle operating systems.
India’s EV landscape has significant potential and scope for boosting green mobility, generating employment, achieving high level energy efficiency, proposing convenient fueling options and investment in research and development specifically in battery technologies. Prominent areas of prospects are outlined below.
- Scope for investments in Research & Development: Collaborations, partnerships and establishment of institutional frameworks such as creation of inbuilt battery ecosystems, promotion of EV education through engineering, technical and non-technical institutions, establishment of battery related startups reduce high import costs incurred on raw materials, testing labs, mining of critical minerals and fundamental parts of the EV structure (S.Kumar, 2022). Since, India’s most of the import expenses cover oil procurement from the Middle Eastern countries, transition and research funding in battery development could reduce import cost by USD 14 billion by 2030 (Arthur D. Little, 2022).
- Accelerating Indigenous Industries and Economic Growth: EVs boost local manufacturing hubs and industries such as automobile, automotive technology, electricity, engineering sectors, industrial machinery providers, and mining sectors, thereby potentiating in-house production of EVs, battery parts, semi-conductors and other electrical components through alternative raw materials such as Steel substituting for Lithium, Nickel, Cobalt (Arthur D. Little, 2022). With India requiring 800 Gwh number of batteries to drive the EV market, it also plans to set up lithium-ion battery manufacturing hubs through subsidies worth USD 2.3 billion supporting battery manufacturing systems and allied industries (Arthur D. Little, 2022).
- Convenient Refueling Systems: In addition to the existing traditional fuel stations, EVs could be charged at home, building trust, convenience, and affordability for the consumers. This also reduces the waiting time in the fuel stations, traffic congestion, shaping the future of urban mobility. Moreover, consumers can plan the time, duration, and location of EV charging in advance and offers efficient fuel options. One of the key benefits of EV charging option include multiple and varied fuel techniques such as fast battery chargers, battery swapping and at-home charging options reducing the fuel charging time (Eride E-Mobility Company – Electric Vehicle Manufactures, Suppliers, 2023). Additionally, EVs incur lower service costs due to limited vehicle components.
- Attaining Climate Goals through Improved Energy Efficiency: EVs are highly energy efficient than conventional vehicles systems, as the former are electricity generated. The traditional vehicle systems use fossil fuels, and natural resources for transportation, while EVs take electricity and power to travel the same distance as that of other vehicle operating systems. The sources of production of EVs can be renewable energy such as wind, solar, thermal and hydro-electricity aligning with India’s goal of adoption of renewable energy across all the sectors (Eride E-Mobility Company – Electric Vehicle Manufactures, Suppliers, 2023).
Given the commitment to achieve Net Zero Targets by 2070, India’s key climate change initiative include improving the e-mobility ecosystem. With the target to grab a share of 30 per cent in the EV market by 2030, India has the potential to standardize e-mobility initiatives carving a sustainable future (Ministry of Heavy Industries, 2024).
EV has the capabilities to address crucial climate change issues such as noise pollution, carbon dioxide emissions (CO2), poor air quality and resource draining consumption. One of the main causes of dampened air quality include emission of harmful gases such as methane, CO2 , nitrogen oxide, Sulphur dioxide and other greenhouse gases. EVs function on electricity emitting almost zero air quality degrading gases promoting clean air quality (Eride E-Mobility Company – Electric Vehicle Manufactures, Suppliers, 2023).
Moreover, EVs reduce noise levels in urban spaces as EVs operate without engines, silencers, and gears. While, conventional vehicles emit huge amount of black smoke from silencers, and compose intensified noise, EVs make almost zero noise and works in a quiet manner (E-Amrit, n.d). India being the third largest CO2 emitter globally, EVs reduce CO2 emissions significantly playing a key role in reaching Net Zero goals. Moreover, EVs transform individuals into eco-citizens through interventions such as EV education, Eco-consciousness, and increased adaptability towards sustainable solutions.
To conclude, Electric Vehicles have the potential to disrupt the green mobility ecosystems significantly challenging conventional vehicle system in terms of CO2 emission reduction, improving air quality, aligning with the climate change mitigation goals, and altering consumer consumption patterns. With corporate financing, capital investments, large scale intervention through production incentives, purchase subsidies, India effectively leads the EV landscape multiplying market share, achieving realistic carbon-neutral goals, and fostering global collaboration.
Written by- Venkatesan Sai Taruni
Edited by- Rimzim Purohit
