World EV Day: Automakers Assess India’s Electric Mobility Road Ahead

On World EV Day, automakers in India are taking stock of the country's electric mobility journey. The mood is cautiously optimistic, but the road ahead is full of potholes.

India's electric vehicle market is growing, but from a small base. In the last fiscal year, EVs made up just over 6% of total vehicle sales, with electric two-wheelers leading the charge. Passenger electric cars lag behind, accounting for less than 2% of car sales.

Automakers point to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, now in its second phase, as a key driver. But they also note that subsidies are tapering off. The government has reduced support for electric two-wheelers, and the industry is bracing for a similar pullback in other segments.

"The policy push has been helpful, but we need sustained support to build a self-sustaining market," says a senior executive at a leading EV manufacturer, speaking on condition of anonymity.

Infrastructure remains the biggest hurdle. India has roughly 12,000 public charging stations, a fraction of what is needed. Most are concentrated in urban centers, leaving highways and rural areas underserved. Range anxiety is still a top concern for potential buyers.

Battery costs are another sticking point. While lithium-ion prices have fallen globally, India still relies heavily on imports. The government's production-linked incentive scheme for advanced chemistry cells aims to boost local manufacturing, but results will take time.

Despite these challenges, automakers are investing heavily. Tata Motors, the market leader in electric cars, plans to launch several new models. Mahindra & Mahindra is betting on its Born Electric platform. Hyundai and Kia are expanding their EV lineups. Startups like Ola Electric and Ather Energy are ramping up two-wheeler production.

"The consumer is ready, but the ecosystem is not," says an industry analyst. "We need more charging points, better battery technology, and affordable financing."

Financing is a hidden barrier. Interest rates on EV loans are often higher than those for petrol or diesel vehicles, reflecting perceived risks. Insurance premiums are also steeper. These costs eat into the savings from lower fuel and maintenance expenses.

On the positive side, India's renewable energy push could make EVs cleaner. The government targets 500 GW of non-fossil fuel capacity by 2030. As the grid gets greener, the carbon footprint of EVs will shrink.

But the transition will not be smooth. The auto industry employs millions, and a sudden shift could disrupt supply chains and jobs. The government is walking a tightrope, balancing environmental goals with economic realities.

World EV Day serves as a reminder of the progress made and the work ahead. India has set an ambitious target: 30% electric vehicle sales by 2030. Meeting that goal will require more than policy announcements. It will need investment, innovation, and patience.

For now, automakers are watching the market closely. They see demand in cities like Delhi, Mumbai, and Bengaluru, where fuel prices are high and pollution is a concern. But they also see a vast hinterland where charging points are scarce and electricity supply is unreliable.

"The next few years will be critical," says the executive. "If we can get the basics right, India can leapfrog to a cleaner future. If not, we risk being stuck in the slow lane."