India's Electric Surge for Eco-Friendly Transportation

Electric two-wheeler (e-2W) sales reached 11.49 lakh units, an increase of 21% compared to last year’s 9.48 lakh.

The Indian Government aims for a 30% EV adoption rate by 2030, in line with the global EV30@30 initiative.

India aims for a bold green future, targeting a reduction of projected carbon emissions by 1 billion tonnes by the year 2030.

India seeks to reduce the carbon intensity of its economy to under 45% by 2030 and ultimately become a net-zero country by 2070.

What are Electric Cars?

An electric vehicle (EV) uses an electric motor, rather than an internal-combustion engine that produces power through the combustion of fuel and gases.

Consequently, this type of vehicle is viewed as a potential substitute for modern cars to tackle problems like increasing pollution, climate change, diminishing natural resources, and so forth.

Obstacles in Embracing

High Upfront Expense: The initial expense of acquiring an electric vehicle in India is considerably greater than that of conventional internal combustion engine vehicles.

This expense encompasses the vehicle itself along with the expense of batteries.

Insufficient Charging Infrastructure: The presence of charging facilities continues to be a major obstacle to EV adoption in India.

Range Anxiety: The fear of depleting battery power before arriving at a charging station, known as range anxiety, is a common worry for Indian consumers contemplating EVs.

Battery Technology and Supply Chain: India depends significantly on imported lithium-ion batteries, leading to higher expenses and making EVs susceptible to supply chain interruptions.

Consumer Awareness and Education: A significant number of consumers in India are unaware and lack comprehension of electric vehicles, encompassing their advantages, technology, and the models that are available.

Government Programs

National Electric Mobility Mission Plan (2020) and FAME-I: NEMMP was implemented to promote the uptake and manufacturing of electric vehicles (EVs).

To support this mission, the FAME India Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) was carried out from 2015 to 2019 to promote the use of electric and hybrid vehicles.

FAME II (Faster Adoption and Manufacturing of Electric Vehicles) — Phase II: Initiated in 2019, this program aims to enhance EV adoption, grow the e-bus network, and bolster the charging infrastructure.

Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Sector in India (PLI-Auto): Introduced in 2021, this scheme seeks to enhance local production of Advanced Automotive Technologies (AAT).

Key companies such as Tata Motors and Mahindra & Mahindra have increased their investments in EV production substantially.

A primary requirement is that businesses must achieve a minimum of 50% domestic value addition (DVA) to be eligible for incentives.

PM E-Drive: The program was initiated in 2024 and is ongoing until 2028.

The main goal is to accelerate the shift to electric vehicles by providing initial incentives for EV buys and promoting the growth of charging infrastructure.

Plan for Advancement of Electric Passenger Car Manufacturing in India 2024 (PAEPCM): To attract international automakers to invest, the plan provides approved applicants a five-year period to import Completely Built Units (CBUs) of electric four-wheelers (e-4W) priced at a minimum CIF (Cost, Insurance, and Freight) of USD 35,000 with a notably lowered customs duty of 15%.

India Electric Mobility Index (IEMI): In 2025, NITI Aayog introduced the India Electric Mobility Index (IEMI). It aims to monitor, assess, and evaluate the advancement of States and Union Territories in achieving their electric mobility goals.