Silent Wheels, Loud Opportunity: Why India Must Accelerate its EV Transition

The NITI Aayog's report 2025, ‘Unlocking a $ 200 Billion opportunity:Electric Vehicles in India’ is a blueprint that calls for urgent policy interventions, cross-sectoral coordination, and public engagement for EV adoption. India’s EV adoption, was just 7.6% in 2024, reflects modest progress but falls far short of the 30% target set for 2030. The country must increase EV sales by 22.4 percentage points over the next six years. This means India must more than quadruple its current share of EV sales in a relatively short time frame, a steep climb that demands accelerated policy action, robust financing models, expanded charging infrastructure and widespread consumer awareness. India’s sluggish progress in electric vehicle adoption becomes even more evident when compared to global trends, where countries like China, the United States and the European Union have achieved significantly faster and more comprehensive penetration across multiple vehicle segments especially car, bus and trucks.

In India, the electric vehicle sector is facing numerous constraints in its overall development, including manufacturing, infrastructure, financing, and consumer adoption. Beyond structural limitations, the transition is hindered by policy inertia, limited financing options, and a serious lack of public awareness, while conventional internal combustion engines continue to dominate the roads. One of the most significant barriers is the high upfront cost of electric buses and trucks, which are typically two to three times more expensive than their diesel counterparts, making them financially unviable for many small-scale operators. Charging infrastructure, often considered the backbone of the EV ecosystem, is another area that shows how unprepared India is to adopt EV transition. While thousands of public charging stations have been installed, their utility remains hampered by poor strategic placement, land access issues, regulatory hurdles, and inadequate power supply. Furthermore, the absence of an integrated digital platform for discovering, booking, and paying for charging stations reflects a fundamental gap in the consumer experience. Without improving the visibility, affordability and convenience of charging, particularly in residential complexes and high traffic corridors, public confidence in EVs will remain subdued in India.

The report rightly advocates for a shift from a purely incentive-driven approach to a more assertive framework combining mandates and disincentives. While financial incentives played a crucial role in attracting early adopters and investors during the initial market entry phase, their continued

effectiveness has diminished over time. India has already spent over ₹40,000 crore through initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) I and II schemes, which were launched to subsidize the purchase of electric vehicles and support charging infrastructure. Despite these efforts, the country has achieved only a modest share of its electric mobility targets, indicating the need for a more robust regulatory push. To speed up adoption, the report suggests going beyond financial incentives and putting stronger policies in place. This includes setting specific targets for key vehicle types such as public transport, shared mobility services like auto-rickshaws (paratransit), and vehicles used for goods delivery in cities (urban freight) because these have the highest potential to reduce pollution and drive meaningful change. Another key recommendation is to focus on achieving full EV adoption in select areas rather than spreading efforts too thinly across the entire country. This will create tangible impact on the ground and henceforth serve as working models for other urban centres. A visible, functioning EV ecosystem in selected cities will generate confidence among consumers, investors, and policymakers alike.

Battery technology is one of the core subjects of the EV revolution, and India should not be left out of this strategically important area. Currently, battery technologies remain dependent on imported minerals such as lithium and cobalt. To make this dependency fall and to augment energy density, a huge national effort needs to be directed at research and development. Industry-academia-government collaborations, supported by the Research and Innovation Fund, should focus on next-generation battery chemistries that may utilize more abundant and sustainable materials such as sodium. In this way, India would not only be self-reliant but could aim at becoming a global leader in battery manufacturing.

Charging infrastructure developments along highways and urban freight corridors should be precisely planned and delivered with institutional support in India. Setting up charging hubs in areas with heavy traffic especially where vehicles already stop frequently or where goods are regularly transported will improve their usefulness and make them more financially sustainable. Awareness building is another support column of the EV transition. Myths about battery fires, range constraints, and resale value remain obstacles to penetration for potential EV buyers. An extended, multiplatform public awareness campaign, combined with consumer-friendly digital tools for cost comparisons, station finders, and vehicle health monitoring, is needed to form the adoption of EV among consumers.

The scope of EVs in India is not limited to mobility; it intersects with clean energy, city planning, public health, and industrial competitiveness. It presents a $200 billion opportunity and a prospect of jumping into a sustainable future. But to unlock this potential, the nation needs to change gears from intention to action. This requires a whole of government and whole of society approach, coordinated, well-funded, and inclusive approach. As global markets advance and the urgency of climate change intensifies, India cannot afford to remain behind in the transition to electric mobility. Now it’s the time to drive the electric revolution. The journey will be long, perhaps, but each quiet wheel revolving today can drive the roar of a cleaner, resilient tomorrow.

(Writers are Anjali P K and Shamna T C, Department of Economics, Assistant Professors, in Christ University, Bengaluru)