Friday, 20 Jun, 2025
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Electric vehicle adoption continues to grow despite challenges such insufficient charging infrastructure, battery durability concerns, and resale value uncertainties. Addressing these through investments in networks, technology, and resale assurance is vital for mass adoption
India is poised for a transformative shift in its mobility landscape, with the number of electric vehicles (EVs) likely to grow eight-fold by 2030, Prime Minister Narendra Modi said on January 17. Highlighting the government’s focus on creating a self-reliant ecosystem for the auto industry, the PM noted that the auto sector attracted more than $36 billion in Foreign Direct Investment (FDI) in the last four years, a trend expected to grow. The Centre’s policies, including the FAME-2 scheme, have been crucial in driving this shift, offering over Rs 8,000 crore in subsidies to support the adoption of 16 lakh EVs, including 5,000 electric buses, and building critical charging infrastructure.
India’s electric vehicle (EV) market achieved remarkable growth in 2024, with sales rising 26.5 per cent year-on-year to 19.4 lakh units, according to Vahan data from the Ministry of Road Transport and Highways. This surge pushed EV penetration to 7.46 per cent, up from 6.39 per cent in 2023, signalling the sector’s steady progress towards mainstream adoption.
However, the market remains dominated by petrol vehicles, which constituted 73.69 per cent of the 2.6 crore total vehicles sold, followed by diesel at 10.05 per cent and alternative fuel variants, including CNG and hybrids, at 9.87 per cent. While EVs are narrowing the gap with combustion engine vehicles, the dominance of petrol and diesel underscores the challenges of achieving widespread electrification in the near term, despite growing momentum.
Notably, the growth in EV adoption continues despite lingering challenges, including inadequate public charging infrastructure, concerns about battery longevity, and uncertainties around vehicle resale value after a few years. These factors emphasise the need for accelerated pumping in money into charging networks, advancements in battery technology, and robust resale value assurance to build consumer confidence and drive mass adoption of EVs.
EV sales in 2024 saw major variations, shaped by policy changes and seasonal demand. The year began strongly, with January and February recording 1,45,064 and 1,41,740 units sold, respectively. Sales went up in in March to 2,13,068 units, marking the year’s first peak, but fell sharply in April to 1,15,898 units—the lowest of 2024—because of price hikes after the FAME-II scheme ended on March 31. A recovery followed in May (1,40,659 units), with stability in June (1,40,137 units).
The second half performed stronger, peaking in October at 2,19,482 units, fuelled by festive demand and the PM E-DRIVE scheme launch. While November and December saw sales dip to 1,92,575 and 1,32,302 units (as of December 29), monthly figures consistently exceeded 1,00,000 units throughout the year, reflecting resilient demand for EVs despite market challenges.
Industry analysts predict significant EV sales growth this year, fueled by high-profile launches from major automakers. Maruti Suzuki is set to debut in the EV market with the eVitara, which will also be supplied to its tech partner Toyota. Hyundai plans to introduce an electric version of its popular Creta SUV. Meanwhile, Mahindra and Mahindra will roll out two all-new electric models, the BE6 and XEV 9e, aiming to generate substantial demand for these EV-exclusive offerings. These launches are expected to bolster consumer interest and accelerate EV adoption across India.
As India continues its push toward greener, more sustainable technologies, one of the central challenges remains the sluggish adoption of electric cars. Despite the centre’s strong support for electrification, with initiatives like the FAME scheme, the transition has been slower than expected. To address this gap, New Delhi is all set to expand its EV incentives for automakers, offering enhanced fiscal support and policy adjustments designed to catalyse the shift toward electric mobility.
The upcoming adjustments to the EV policy are particularly focused on attracting foreign investment, with an emphasis on global giants like Tesla.
