India’s electric vehicle (EV) industry is witnessing an unprecedented transformation, marked by exponential growth in adoption and production. And recent figures highlight this momentum. A remarkable 1,675,800 EVs were sold between April 1, 2023, and March 31, 2024, translating to an average of 4,591 units per day.
The country has cumulatively sold 3.95 million electric vehicles, reflecting a clear shift toward sustainable transportation solutions. This growth spans across segments, with two-wheelers and three-wheelers leading the charge due to their affordability and widespread adoption in urban and semi-urban areas.
Passenger and commercial EVs are also gaining traction, driven by advancements in battery technology and consumer awareness. India is not just a growing market for EVs, but the country is rapidly emerging as a manufacturing hub, with increased production of both vehicles and supporting components, including batteries and chargers.
Bridging the gap: Policy support for growth
India’s EV ecosystem has gained tremendous momentum, thanks to a series of well-planned policies and initiatives. These measures have provided financial incentives, bolstered infrastructure development, and encouraged innovation in EV manufacturing.
Among the notable recent initiatives is the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme—introduced in October 2024—with an outlay of Rs 10,900 crore.
This programme focuses on upfront subsidies to reduce EV purchase costs, the establishment of charging infrastructure, and support for advanced manufacturing, making EVs more accessible and fostering domestic production.
Complementing earlier schemes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), the PM E-DRIVE initiative emphasises demand creation for vehicles, including two-wheelers, three-wheelers, e-ambulances, and e-trucks, while promoting environmental benefits and technological advancements.
Additionally, initiatives like the GO ELECTRIC campaign—launched in 2021—have increased public awareness about EV adoption and charging infrastructure. These schemes helped build a robust charging infrastructure to address range anxiety and promote widespread EV adoption, funding allocation to improve battery technologies, and long-lasting batteries that enhance vehicle performance and reliability.
Moreover, these initiatives provided much-needed confidence and an initial boost to entrepreneurs and startups, which promotes innovation in the EV sector. However, much development is still required to address financial and technological barriers.
Real-world problems on the way
Despite decent progress, the EV industry is facing several challenges. The lack of financing options remains a barrier for many potential buyers, particularly in rural and semi-urban areas.
Additionally, there are insufficient EV charging stations, with rural, hilly, and highway areas still underserved, contributing to persistent range anxiety. The disposal and recycling of used EV batteries also pose environmental and logistical concerns, given the hazardous materials involved.
Lastly, high upfront costs and limited after-sales service networks make it difficult to achieve mass adoption across all segments. Addressing these issues will be crucial to sustaining the EV revolution.
Role of technology
Technology is at the heart of the EV revolution, with innovations continuously driving progress. Artificial Intelligence (AI) and Machine Learning (ML) are enhancing Battery Management Systems (BMS) for better performance and predictive maintenance. Real-world applications, like Tesla’s over-the-air (OTA) software updates, allow vehicles to gain new features remotely, setting benchmarks for efficiency.
In India, advancements in solid-state battery technology promise higher energy density and longer lifespans, reducing dependence on imports. Additionally, fast-charging networks are expanding with ultra-rapid chargers that can recharge a vehicle in under 30 minutes.
Innovations like battery swapping technology for two- and three-wheelers are improving convenience for urban mobility. These advancements make EVs more accessible, reliable, and efficient for users.
In conclusion, India’s e-mobility journey exemplifies the power of collaboration between governments, private sectors, and consumers. Policies have set the stage for growth, while technological advancements and entrepreneurial innovation continue to drive adoption.
However, sustained effort is needed to address challenges like affordability, infrastructure gaps, and battery recycling. By fostering inclusivity, innovation, and sustainability, India can not only secure its position as a global leader in electric mobility but also set an example for a greener, cleaner future for the world.
Abhinav Kalia, CEO and Co-Founder of ARC Electric.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
