The electric vehicle industry appears to have a promising future in India, drawing significant attention from the government due to its potential benefits. This focus extends beyond environmental considerations, as India envisions becoming a manufacturing hub for electric vehicles, aiming to create employment opportunities and foster economic growth.

Currently, around 3.97 lakhs electric vehicles are in operation on Indian roads. The lower average prices of these vehicles may pose a barrier to widespread adoption over the next decade. However, efforts by the government to enhance affordability, coupled with initiatives to ensure universal access to electricity, are expected to contribute to increased electric vehicle uptake.

Global statistics indicate a notable rise in electric vehicle sales, projected to grow from 1.1 million in the previous year to 11 million in 2025, with a further surge to 30 million in 2030. The Indian government has mandated the full electrification of new three-wheelers from April 1, 2023, and two-wheelers below 150 cc engine from April 1, 2025.

Despite the higher initial cost of electric cars, the increasing prices of petrol—rising by over 50% in recent years—make the operational costs of fuel-based cars comparatively expensive. The government’s support and the potential for substantial fuel savings suggest that the growing popularity of electric cars in India is imminent. The higher upfront investment in electric vehicles is anticipated to be recoverable within a couple of years through reduced fuel expenses.