From leading in three‑wheelers to lagging in long‑haul trucks, India’s EV story shows sharp contrasts, with NITI Aayog urging targeted rollouts and global‑style mandates.
India must more than triple the share of electric vehicles (EVs) in its total vehicle sales within the next five years to meet its 2030 target, according to a new NITI Aayog report released on Monday.
Titled Unlocking a $200 Billion Opportunity: Electric Vehicles in India, the study reveals that EV sales in the country have risen from 50,000 units in 2016 to 2.08 million in 2024, taking India’s EV stock to 5.45 million; about 9% of the global total. In 2024, India accounted for 11% of global EV sales, but penetration stood at just 7.66%, far behind the worldwide average of 16.48%.
By comparison, global EV sales climbed from 918,000 in 2016 to 18.78 million in 2024, raising the global EV stock to 61.21 million.
Segment-by-segment performance
The report finds India leading globally in electric three-wheelers and making steady progress in electric two-wheelers and buses, but adoption in electric cars and long-haul trucks remains slow. In 2024, India sold 6220 electric trucks: 95% of which were under 3.5 tonnes, primarily for urban freight, out of a total of 834,578 trucks sold. Only 280 heavy trucks were sold, despite such vehicles contributing over 34% of transport CO₂ emissions.
Global benchmarks
NITI Aayog placed strong emphasis on China and Vietnam as reference models for rapid EV adoption. China remains the undisputed global leader, selling 12.4 to 12.9 million passenger EVs in 2024: equivalent to 40–50% of its car market, and accounting for 60–65% of global sales. In Q1 2025 alone, it sold 2.5 million EVs, compared with India’s ~35,000. Vietnam, meanwhile, has set an ambitious target of achieving 100% electrification of two-wheelers and buses in urban areas by 2035.
Barriers to scale and how to scale
The study highlights four systemic challenges:
- Financing: E‑buses and trucks cost 2–3× ICE models; 80% of truck owners and most bus operators are small fleet owners with ≤5 vehicles.
- Charging infrastructure: High public charging costs (18% GST vs 0% at home), low utilisation rates, delayed power connections, land acquisition hurdles, and RWA resistance.
- Awareness gaps: Persistent misconceptions on range, safety, resale value; poorly communicated total cost of ownership (TCO) benefits; varied state incentives creating confusion.
- Data and regulatory deficits: Incomplete VAHAN records, no unique battery IDs, and limited battery recycling infrastructure.
It called for a policy shift “from incentives to mandates” with the following key measures:
- Zero emission vehicle (ZEV) targets: Announcing clear adoption goals within a year; progressively tighten production and purchase mandates; expanding CAFÉ norms beyond passenger cars.
- Saturation rollouts: Fully electrifying five cities within five years, then expanding to 20 and 100 cities over the next decade, tailored to India’s cost-sensitive market (75% two-wheelers, only 2% high-end cars).
- Financing mechanisms: Creating a blended public–multilateral fund for e‑buses/trucks; encouraging leasing, battery‑as‑a‑service (BaaS), and battery passport systems.
- Battery R&D: Industry–academia–government partnerships to develop new chemistries, cut costs, and reduce reliance on imported lithium, cobalt, and rare earths.
- Charging network expansion: Identifying 20 freight corridors for e-bus/truck hubs; streamlining charge point operator (CPO) approvals; introducing TOD (time-of-day) pricing, special EV power lines, and a unified national charging app.
- Opex over CapEx: Shifting to service-based fleet models to reduce upfront procurement costs.
- Awareness and data systems: Launching national TCO (total cost of ownership) campaigns; upgrading VAHAN to track EV categories accurately.
- Inter‑agency coordination: Resolving power‑connection delays, GST disparities, and charging‑standard fragmentation.
Additionally, five urgent actions are proposed:
- National EV policy with targets and timelines.
- Phased regulatory mandates for electrification.
- Saturation pilots in five cities.
- Blended finance facility for heavy EVs.
- Inter-ministerial coordination mechanism.
Policy background
The report highlighted India’s target for electric vehicles (EVs) to account for 30% of all new vehicle sales by 2030. To advance this goal, the government established the National Mission on Electric Mobility and rolled out a series of dedicated schemes offering financial incentives for EV adoption.
The first initiative, Faster Adoption and Manufacturing of Electric Vehicles (FAME–I), ran from 2015 to 2019 with an allocation of ₹8.95 billion. It was followed by the far more ambitious FAME–II programme, operational from 2019 to 2024, with a budget of ₹115 billion.
In 2024, the government launched the PM e‑Drive scheme, to run until 2026, with an allocation of ₹109 billion. Together, these programmes have sought to lower upfront EV costs, promote domestic manufacturing, and expand charging infrastructure.
NITI Aayog CEO B.V.R. Subrahmanyam said the report “offers a timely and comprehensive review of current challenges and actionable recommendations to fast‑track the EV transition.”
The report was released by Rajiv Gauba, Member, NITI Aayog, in the presence of B. V. R. Subrahmanyam, CEO, NITI Aayog; Kamran Rizvi, Secretary, Ministry of Heavy Industries; O. P. Agarwal, Distinguished Fellow, NITI Aayog; and Sudhendu Sinha, Programme Director – E‑Mobility, NITI Aayog, along with other dignitaries.
