As the government incentivises electric vehicles, the infrastructure needed to support this segment is also seeing growth.
The EV (electric vehicle) revolution has long been viewed as a game-changer for India’s automotive sector. A growing need to curb pollution and reduce dependence on oil imports has strengthened the case for widespread EV adoption.
Post-liberalisation in the early 90s, India has seen rapid urbanisation, economic growth, and migration, which in turn has contributed to severe traffic congestion and deteriorating air quality in major metropolitan areas. In 2024, India was ranked the third most polluted country in the world, with an average Air Quality Index (AQI) of 111, ranging from poor to unhealthy levels.
The health impact is staggering. A 2024 study in The Lancet Planetary Health linked air pollution to 1.5 million deaths annually in India. Long-term exposure to PM2.5 pollutants—emitted by vehicles and fuel combustion—has been associated with respiratory illnesses, heart disease, and other chronic conditions, placing a significant burden on public health systems.
Beyond environmental concerns, India is also trying to cut its crude oil imports, which reached 4.84 million barrels per day in 2024, a 4.3% increase from the previous year. With EVs offering a sustainable alternative to fuel-burning ICE (internal combustion engine) vehicles, the transition to cleaner mobility is now a national priority.
There’s great potential for the EV sector in India. However, EV adoption requires strong and robust EV infra: without it, there will be hurdles on both the demand and supply side. A 2020 report from KPMG highlighted that the development of the battery industry, local supply chains, and charging technology are key to accelerating EV adoption. With the government rolling out new initiatives, EV adoption is expected to surge, especially with improvements in charging infrastructure.
Let’s take a look at the landscape and the potential ahead.
A snapshot of the EV market in India
In India, two-wheelers dominate EV sales, given their economic viability, both in terms of price and fuel economy. But the 2025 outlook for four-wheelers looks more than promising, with 18 new EV launches planned for the year, surpassing that of diesel and petrol cars.
Some of the launches to watch out for include:
- Maruti Suzuki’s first electric SUV, the eVitara, by March 2025. The eVitara will offer two battery options, providing a range of up to 500 km.
- Tata Motors Harrier EV, which will feature electric-specific updates and offer a range of up to 500 km.
- BYD’s Sealion 7, an electric SUV with a range of 567 km, at the Bharat Mobility Global Expo 2025.
- Even Elon Musk has also confirmed Tesla’s plans to manufacture a $25,000 (INR 21 lakh) electric car in India by 2025
India’s EV market is set for rapid expansion, with projections indicating a 43% CAGR, reaching 932,000 units by 2030. A significant 61% of this demand is expected to come from electric SUVs. In contrast, EV sales in 2024 stood at just 107,000 units, while total car sales, including sedans and SUVs, reached approximately 4.3 million across the country.
Some of the major hurdles to EV adoption include the perceived high cost of the vehicles, the long waiting time (largely driven by demand which is outpacing supply), and the perceived lack of charging infrastructure. And this is precisely what the government is trying to change.
EV charging infra in India: Factors affecting it and current state
Here’s a snippet from a 2021 NITI Aayog report titled “Electric Vehicle Charging Infrastructure and Its Grid Integration in India.”
Charging infrastructure is at the heart of India’s electric vehicle (EV) revolution, with its development shaped by several key factors:
- The composition of EVs on the road (types of vehicle)
- Vehicle usage/running patterns (long-distance, inter-city, commercial, passenger etc)
- Terrain and geography
- Urbanisation trends
- Technology of EVs
- Technology of charging equipment and infrastructure
Since these factors are still evolving, there is no universal standard for the ideal number of charging points per EV. However, regional data provides insight into the current state of infrastructure.
As of November 30, 2024, Karnataka leads with 5,765 public charging stations (PCS), followed by Maharashtra (3,728) and Uttar Pradesh (1,989). Other states making significant progress include Delhi (1,941), Tamil Nadu (1,413), Kerala (1,212), and Rajasthan (1,129). Nationally, 25,202 public charging stations had been installed by December 10, 2024, according to the Bureau of Energy Efficiency.
The Ministry of Heavy Industries (MHI) and Ministry of Power (MoP) are driving the electric vehicle (EV) revolution in India through new policies and infrastructure development. To accelerate EV adoption, the government launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme in September 2024, with a ₹10,900 crore investment over two years. This initiative focuses on demand incentives, public charging expansion, and EV procurement.
Key allocations include:
- ₹3,679 crore for demand incentives, supporting over 24 lakh electric two-wheelers (e-2Ws), 3 lakh three-wheelers (e-3Ws), and 14,000 electric buses.
- ₹500 crore for electric ambulances and ₹500 crore for incentives on scrapping old trucks for new e-trucks.
- ₹4,391 crore to procure electric buses for major cities like Delhi, Mumbai, and Kolkata.
- ₹2,000 crore for installing 70,000+ public fast chargers in high-EV penetration areas and highways.
In line with this, the Ministry of Power (MoP) updated its EV charging infrastructure guidelines in September 2024, targeting rapid expansion. By 2030, urban areas will have a charging station in every 1 km², while highways will see fast chargers every 100 km for heavy-duty EVs and every 20 km for smaller vehicles.
Given the vast market potential and the government’s push to drive e-mobility in India, the Ministry of Power has also tasked Energy Efficiency Services Limited (EESL) with spearheading efforts in the EV sector through demand aggregation. EESL, a government-backed entity, plays a key role in deploying sustainable mobility solutions, including electric vehicles, smart metering, and LED adoption programs. In line with this directive, the E-Mobility Programme was officially launched on March 7, 2018, by the Minister of Power, New and Renewable Energy.
Zooming ahead: future outlook and trends
The EV charging market in India is expected to grow to $3.7 billion by 2030, driven by increasing EV adoption. A major trend shaping India’s EV landscape is the growing adoption of battery-swapping technology, especially for two- and three-wheelers. Leading automakers are investing in these solutions to enhance affordability and accessibility, making EV ownership more convenient for Indian consumers.
On the infrastructure front, key developments enhancing EV accessibility and adoption include:
- Integrating renewable energy into charging grids, making EV ownership more sustainable.
- Consolidation of EV charging networks and making chargers and charging points discoverable on a single platform
- Developing CPOs (charge point operators) as a business model, to deploy and manage chargers
- Development of fleet charging hubs, to cater to large electric fleets used in logistics operations
Building a robust charging infrastructure is crucial to accelerating EV adoption in India. And as consumers ponder making the switch to EVs, they will continue to weigh affordability, supportive policies, and cutting-edge technology as key factors. However, with bold initiatives like PM E-DRIVE, expanding investments in charging networks, and advancements in battery-swapping technology, India is on track to emerge as a global leader in the electric mobility revolution.