The role of EVs in accelerating India’s transition to a sustainable mobility future

India is entering a defining phase in its mobility evolution as the movement toward electric vehicles shifts from early adoption to a clear national direction. The push for a sustainable mobility model stems from several overlapping pressures that are now impossible to ignore. Worsening air pollution, a rapidly expanding oil import bill, rising congestion in cities and firm climate commitments have created an environment where deep decarbonisation is no longer optional.

India’s journey toward sustainable mobility depends on coordinated progress in technology, affordability, infrastructure and policy. Electric vehicles accelerate this transformation by addressing long standing issues while offering new possibilities in industrial innovation and national competitiveness.

Electric vehicles offer the strongest pathway to respond to these long standing issues while preparing India for sustained competitiveness in the global mobility market. National ambition is reflected in the 2030 targets that aim for 30 percent of private cars, 70 percent of commercial vehicles, 40 percent of buses and 80 percent of two and three wheelers to run on electric power. These goals point to the presence of nearly 80 million EVs on Indian roads during the coming decade and signal a shift that carries both environmental and economic significance.

Demand Surge

The rise of EVs is becoming increasingly evident as consumer interest strengthens across all major categories. India registered EV sales of 1.97 million units in FY25, which represents a 16.9 percent increase compared to 1.75 million in FY24. Two wheelers maintained their lead with 1.15 million registrations and recorded growth of 21.2 percent. Electric passenger cars crossed the 1 lakh mark and expanded at 18.2 percent. Three wheelers, which serve as a backbone for mobility in many urban and semi urban regions, closed in on 7 lakh units and posted a 10.5 percent rise. This broad based growth demonstrates that EVs are no longer appealing only to niche groups and are steadily becoming a preferred mobility option for a wide range of users. The planned introduction of nearly a dozen new electric passenger cars in 2025 further shows that automakers view electrification as the next major battleground for competitiveness.

Cost Advantage

India’s mobility shift cannot gain large scale traction unless EVs deliver meaningful economic benefits for consumers. This is where electric vehicles fundamentally reshape the economics of transportation. A study conducted by the Council on Energy, Environment and Water highlights how the total cost of ownership now favours electric vehicles in segments with high daily usage. Electric two wheelers operate at around INR1.48 per km compared to INR2.46 per km for petrol models. Electric three wheelers run at INR1.28 per km while petrol variants cost INR3.21 per km. Commercial taxi operators also experience substantial long term savings as fuel forms a significant portion of their lifetime spending. These financial advantages make the switch to EVs not just environmentally progressive but also economically logical for millions of users, especially for those who rely heavily on daily mobility.

Infrastructure Expansion

The pace of India’s electrification will depend heavily on the strength and availability of charging infrastructure. The country had 12,146 public charging stations functioning as of February 2024, with Maharashtra and Delhi emerging as the leading contributors. The Confederation of Indian Industry estimates that the nation will require nearly 13.2 lakh chargers by 2030. Achieving this target will require annual installation numbers to rise above 4 lakh units.

Government plans are aligned with this objective as there is a target to deploy roughly 72,000 new chargers by FY26, including 22,100 fast chargers specifically designed for electric cars. Accessible and reliable charging points are essential for reducing range anxiety, supporting commercial fleet electrification and helping EVs integrate into everyday travel routines across cities and towns.

Policy Continuity

India’s shift to sustainable mobility is strengthened through consistent policy support that spans several ministries and schemes. The Government has renewed its commitment to achieving 30 percent electric mobility by 2030 and has offered customs duty exemptions on capital goods and machinery used in lithium ion battery production. In August 2025, an allocation of more than INR1,062 crore was made for 85 civil depot projects and 88 power development projects while INR475 crore was provided to states to expand infrastructure and improve affordability.

NITI Aayog’s proposal for a national EV policy marks a transition toward mandate driven measures and disincentives rather than heavy dependence on subsidies. FAME II, with a budget of INR11,500 crore, has supported 16.29 lakh EVs. This includes 14.35 lakh two wheelers, 1.65 lakh three wheelers, 22,644 four wheelers and 5,165 buses. Public charging stations installed under FAME II stand at 8,885 out of the sanctioned 9,332 units.

Local Manufacturing

Local manufacturing plays a central role in ensuring that India’s EV ecosystem grows in a resilient and sustainable manner. The Phased Manufacturing Programme directs incentives only to vehicles that meet domestic value addition benchmarks. The six month programme launched in 2024 with a budget of ?778 crore supported 3,72,215 vehicles. This included 3,33,387 two wheelers and 38,828 three wheelers that featured advanced battery systems. The initiative has now been merged into PM E DRIVE which continues to deliver incentives while raising the emphasis on local sourcing. This approach strengthens India’s energy independence, lowers reliance on imported components and positions the country as a major hub for global electric mobility manufacturing.

Sustainability Impact

India’s transport related emissions are set to rise sharply if the vehicle population continues to expand at current rates. Projections indicate that the national vehicle base could more than double by 2050 under a business as usual scenario. Electric vehicles provide a direct route to cut emissions, enhance air quality, reduce noise pollution and lower dependence on imported fossil fuels. Electrification of buses and freight vehicles, which is being tested through new proposals for 100 percent electrification, can deliver significant environmental improvements as these segments contribute heavily to pollution in major cities. The combination of rising clean energy production and expanding domestic manufacturing strengthens the sustainability profile of EVs and builds a transport system that is greener as well as more economically stable.

Growth Potential

India’s EV growth outlook is supported by forward looking projections that show steady long term momentum. EV penetration is expected to exceed 7 percent of total vehicle sales by FY28 as long as model availability improves and rare earth supply chains become smoother. Battery demand is expanding rapidly as the EV battery market grows from USD 16.77 billion in 2023 to USD 27.70 billion in 2028. The broader EV market which was valued at USD 2.36 billion in 2024 is projected to jump to USD 164.42 billion in 2033 at a compound annual growth rate of 57.23 percent. These numbers show that electric vehicles represent a large industrial ecosystem that can generate new employment, attract new investment and create opportunities for exports.

Future Path

India’s journey toward sustainable mobility depends on coordinated progress in technology, affordability, infrastructure and policy. Electric vehicles accelerate this transformation by addressing long standing issues while offering new possibilities in industrial innovation and national competitiveness. The combined effect of cost efficiency, growing consumer acceptance, rising domestic production and stable government support provides a solid foundation for India to leap ahead of conventional mobility pathways. A future in which EVs form the core of India’s transport system is within reach and carries strategic importance for the nation. Continued collaboration among government authorities, industry and users will ensure that the electric mobility movement leads to a cleaner, more efficient and more resilient future for India.