India’s electric vehicle (EV) industry is witnessing an unprecedented transformation, marked by rapid growth in adoption and production. And recent statistics 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 sold 3.95 million electric vehicles, reflecting a clear shift towards sustainable transport solutions. This growth is spread 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, powered by advances in battery technology and consumer awareness. India is not only a growing market for EVs, but the country is fast emerging as a manufacturing hub with increased production of both vehicle and accessory components, including batteries and chargers.
Bridging the Gap: Policy Support for Development
India’s EV ecosystem has gained tremendous momentum due to a series of well-planned policies and initiatives. These measures have provided financial incentives, strengthened infrastructure development, and encouraged innovation in EV manufacturing.
Among the recent notable initiatives is the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme – introduced in October 2024 at an outlay of Rs 10,900 crore.
The program focuses on upfront subsidies to reduce EV purchase costs, installation of charging infrastructure, and support for advanced manufacturing, making EVs more accessible and promoting domestic production.
Complementing earlier schemes like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), the PM E-DRIVE initiative focuses on demand generation for vehicles including two-wheelers, three-wheelers, e-ambulances and e-trucks. Environmental benefits and technological progress.
In addition, initiatives such as the GO ELECTRIC campaign launched in 2021 have increased public awareness of EV adoption and charging infrastructure. These plans addressed range concerns and promoted widespread EV adoption, allocating funds to improve battery technologies, and longer-lasting batteries that helped increase vehicle performance and reliability.
Moreover, these initiatives provided the much-needed confidence and initial impetus to entrepreneurs and startups, boosting innovation in the EV sector. However, more development is needed to address the financial and technical constraints.
Real-world problems along the way
Despite good progress, the EV industry faces many challenges. Lack of financing options has become a barrier for many potential buyers, especially in rural and semi-urban areas.
Additionally, there are insufficient EV charging stations, with rural, hilly and highway areas still underserved, contributing to continued range concerns. Disposal and recycling of used EV batteries also pose environmental and logistical concerns, including hazardous materials.
Finally, high upfront costs and limited after-sales service networks make it difficult to gain widespread acceptance across all segments. Addressing these issues will be critical to sustaining the EV revolution.
The role of technology
Technology is at the heart of the EV revolution, with innovations driving constant 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 receive new features remotely, setting benchmarks for efficiency.
In India, advances in solid-state battery technology promise higher energy density and longer life, reducing dependence on imports. In addition, fast-charging networks are expanding with ultra-rapid chargers that can recharge a vehicle in less than 30 minutes.
Innovations like battery swapping technology for two and three wheelers are improving urban mobility. These advancements make EVs more accessible, reliable and efficient for users.
Finally, India’s e-mobility journey exemplifies the power of collaboration between government, the private sector and consumers. Policies have set the stage for growth, while technological advances and entrepreneurial innovation continue to take hold.
However, sustained efforts are needed to address challenges such as affordability, lack of infrastructure, and battery recycling. By promoting inclusiveness, 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.)