India’s EV Race: Miles Behind China, America, Despite Big Push

Auto News: Electric vehicle sales have grown rapidly in India in the last few years, but this pace is still much lower than that of China, the US, and many European countries. In 2024, electric vehicles contributed only 7.6 percent to total vehicle sales in India, which is much lower than the government's target of taking the share to 30 percent by 2030.

This has been revealed in a report by the government's think tank, Niti Aayog. Although there has been a tremendous increase in the sales of electric two-wheelers in India, the pace is much lower for electric cars, buses, and large vehicles. Niti Aayog believes that a National EV Policy is needed in India to increase sales in these segments.

Suggestion made in the report

The report, titled “Electric Vehicles in India: Unlocking USD 200 Billion Opportunity,” lays out a roadmap for promoting electric vehicles (EVs) in the country. It highlights key challenges and calls for strict measures to achieve the target of 30% EV sales by 2030. The report also suggests investments and reforms to accelerate EV adoption.

India lags behind other countries in adopting EVs

According to the report, India's EV sales have increased from 50,000 units in 2016 to 28 lakh units in 2024. At the same time, EV sales have increased from 9.18 lakh units in 2016 to 1.878 crore units in 2024 worldwide. In 2024, the share of EVs in India's total vehicle sales was only 7.6%, which is much less than the 30% target set for 2030. It has taken India about 10 years to get this 7.6% share, but it will have to increase it to more than 22% in the next 5 years. According to the report, India is doing well in EV two-wheelers and three-wheelers; there has been some progress in buses as well, but the pace in electric cars is slow, and long-distance electric trucks have almost not started.

The way forward

The report has recommended strict regulations to promote the adoption of electric vehicles beyond incentives. It has suggested a plan to convert the fleet of buses, paratransit, and freight vehicles to electric in 5 big cities so that the impact can be clearly seen. It has suggested creating a common fund with international cooperation to reduce the initial cost of electric buses and trucks and developing a strong charging network on 20 major freight routes. Along with this, it has been said to create an EV charging app across the country, which will make charging and payment easier.