The future of electric vehicles in India is in a great position, as the sales are expected to jump over 100 million by 2030. The Indian Government aims for a 100% electric mobility nation by the next decade.
The interest in people towards a cleaner environment and sustainable mobility was seen during the lockdown, as the nation observed a fall in the pollution levels. The switch to electric mobility is seen as a necessity by both the individual and the government.
The Indian Government has taken on an ambitious goal of making 30% of vehicles in India electric by 2030. The switch to electric vehicles in India is happening at a rapid pace aiding the better future of electric vehicles in India. By 2023 the government wants all 3-wheelers to run on batteries, by 2025 this rule is expected to expand to most 2-wheelers.

With the announcement of a manufacturing unit of global EV giant Tesla in India, the interest of millennials and Genz towards electric vehicles is tremendous. Tesla will be launching its electric cars in India for sale in 2021.
Indian government came up with FAME II and Niti Ayog, which aims to make India a major hub for electric vehicle production in the next five years.
As per the Paris Agreement India plans to generate a major portion of its electricity from renewable resources with an attempt to adopt sustainable energy generation and make electric vehicles really green.
Currently, a major portion i.e. 87% of India’s automotive fuel is imported from other countries
India’s Import of fossil fuels
By the adoption of electric vehicles in India, the nation can save up to 70 Billion on oil imports by 2035. Several reports state that switching over to EVs and indigenous manufacturing of electric vehicles can increase the GDP in India to 27% by 2030.
Do you want to know, What is the future of electric vehicles in India?
Here is the detailed study of the future of electric vehicles in India.
Electric ecosystem in India
Much before the onset of the electric revolution in India, a great number of electric rickshaws were seen operating in Indian cities as public transport which was a good indicator of public concern towards the environment.
This rise in the interest towards sustainable mobility in India points to the fulfillment of the ambitions of government towards an electric nation sooner.
The electric vehicle ecosystem is booming up lately in India on a very massive scale with the hands-on involvement of major automobile manufacturers from India. A great number of EV startups from India are adding to the R&D in the EV sector in India.
These alternative transport technologies are bringing a major shift in India from fossil-fueled cars to sustainable electric-powered cars.
Currently, the major electric vehicle companies in India are Mahindra, Tata Motors, hero electric These EV manufacturers have launched their first generation of electric vehicles in India.
Some of the iconic electric vehicles launched in India are Hyundai Kona electric , mahindra e20, Mahindra e-Verito, Tata tiago electric, many from electric bus giant ashok leyland like the hymus bus.

The Auto Expo 2020 featured some of the latest electric cars and prototypes from the leading automobile giants in Inida, with an aim to spark the flame of sustainable mobility in India.
Major electric vehicle startup companies in India are Okinawa electric, Ather energies, Tork motors, ultraviolette automotive
The government of India offered 1120 Cr to TATA Motors Ltd for manufacturing 10,000 electric cars in order to mitigate the pollution problems in the capital and certain other metros. It was an instant move by the government as they were lagging behind in the ambitious goat set for 2030.
OLA recently introduced its aim for the deployment of 1 million electric cars on Indian roads by 2022 under the project mission electric.
Amazon too announced its delivery chain is going to be fully electric in metros by 2021.
Government policies on electric vehicles in India
With the ever-rising pollution levels in Indian metros, the government of India has been lately taking a keen interest in developing an electric ecosystem in India. GOI aims electrification of commercial vehicles by 60%, and 40% of private cars by the end of this decade. The reason which it launched.
The government of India has undertaken multiple initiatives to promote the manufacturing and adoption of electric vehicles in India with the release of FAME II and the National electric mobility mission.
With the support of the Central Government and State Government, electric vehicle charging stations have started emerging under EV make in India scheme-FAME.
With a view of switching over to the electric vehicle ecosystem, the government of India has de-licensed the public charging station ventures for Indian EVs. This means many young entrepreneurs can dive into this sector without the hassle of license and just maintaining the parameters set by the government.
START AN ELECTRIC VEHICLE CHARGING STATION INDIA
The government of India has set a subsidy of 1 lakh on buying an electric car in India. This was done with an aim to tackle the major barrier in owning an EV in India which was the Initial cost of buying. Major metros like Delhi and Maharastra have already launched their respective EV policies.
Along with that subsidies are allowed in the components of electric vehicle charging stations to improve the industry infrastructure.
Role of Government in the rise of the electric vehicle industry
Lately, the GOI of India is taking a keen interest in the development of the electric vehicle ecosystem in India. Some of the initiatives taken by the Government of India in the electric vehicle sector are
- FAME responsible for supporting and increasing the number of electric vehicles in India has declared the tender for electric-rickshaws under Energy Efficiency Services Ltd (EESL).
- The GST rate is decreased to 12% on electric vehicles compared to 28% on traditional ICE vehicles.
- In order to replace the government vehicles with electric ones, the GOI has already sanctioned 1100 crores to TATA Motors for manufacturing 10,000 electric cars.
- Karnataka government aims to acquire an investment of 31,000 Crores from the private sector under the state Electric vehicle policy.
- Some of the imported EV parts like onboard chargers, e-compressor are exempted from customs duty as per the proposed initiative of the GOI.
- The loans on electric vehicles purchase are exempted from a hefty tax of 1.7 Lakhs as a subsidy on buying electric cars.
- Department of road transport outlayed that there will be no requirement for an official permit for the battery-operated cars.
- With the major electric bus manufacturers of the country like Ashok Leyland and BYD, the state transport departments plan to deploy 5500 electric buses by 2030 in some major metros.
Apart from these some of the future initiates of NITI AAYOG under government of India for the future of electric vehicles are-
- From January 2019 (next year), NITI AAYOG expects all new government vehicles to be electric vehicles.
- It will be mandatory to provide charging points for EVs for multistorey apartments.
- Public locations such as shopping centers, business buildings, and offices will be expected to reserve and set up charging points for e-vehicles with 10 percent parking space.
- Free parking for electric vehicles will be offered for three years. Besides this, more toll exemptions will be awarded.
- A set percentage of electric cars will be ordered each year for the top 10 polluting cities to file.
- For the registration of petrol and diesel cars, a step by step limit will be imposed, finally arriving at a full prohibition
Challenges for the future of electric vehicles in india
Apart from the merits of electric vehicles and concerted efforts of the government towards the switch to green mobility, EVS in India continues to face challenges with respect to overall infrastructure and cost of owning.
The major challenges for electric vehicles in India are the inadequate charging infrastructure and the high cost of ownership compared to traditional ICE vehicles. Lower battery performance and high cost of EVs due to the import of lithium-ion batteries also add to the challenges faced by the EV industry in India.
Problems and challenges faced by electric vehicles in India are
The initial cost of owning
The average price of traditional internal combustion engines (ICE) petrol and diesel cars is quite low in India compared to electric cars. The cost of owning an electric car in India is around 10 lacs meanwhile, it goes to 5-7 lacs for traditional fossil fuel ICE cars.
It is the same for electric scooters and bikes, as the hefty price difference is a big turn-off for Indian consumers who are not impulsed buyers.
The initial cost of owning an electric car can be a big challenge for the electric vehicle industry in India.
Charging time
Due to the initial standardization of slow charging options for electric vehicles in India, the wait time to charge an EV can be a major challenge. Not many vehicles are included with flash charging technology to top-up the vehicle in minutes. Electric mobility as public transportation will be affected by this increased charging time.
As of now, not many charging stations have DC fast chargers installed, which would decrease the time to charge an EV significantly.
This is an untapped opportunity for individuals to start an electric vehicle charging station in India and help in infrastructure development. Click below to explore
Uneven electricity distribution
Currently, a major portion of the energy is produced through non-renewable resources in India, which would worsen further with the increase in the number of charging stations across India.
An increase in charging stations will put big pressure on electricity generation. So the GOI should focus first on generating energy through alternate renewable resources.
Solar-powered charging stations and alternate sources for electricity generation are of prime concern now.
Lack of EV charging Infrastructure
A huge barrier to the faster adoption of electric mobility in India is the lack of adequate charging infrastructure in India. Apart from few metros, there are really fewer charging stations which makes it very difficult for daily commuters to switch over EVs.
Despite the recent policy of the Indian government for the installation of charging stations across major highways, very few can be seen until today. It makes driving and traveling far from the city by an EV almost impossible. Along with that lack of service centers and repair mechanics makes it really hard for an individual to choose EV over traditional internal combustion engines(ICE) vehicles.
Range anxiety in consumers
Due to the lack of adequate charging infrastructure in India, consumers have a set mentality of range anxiety towards electric vehicle adoption. The highest range of an electric car in India is claimed by Hyundai Kona electric i.e. 452 KMs which comes with a hefty price tag.
The battery performance and range anxiety play a major role in the EV adoption in India.
Lack of Lithium reserves for battery manufacture
Lithium-ion batteries are used in the new electric cars as they are capable of rapid charging and high performance. But currently, India doesn’t produce any lithium-ion batteries to be used in EVs as we don’t have many Lithium reserves in India. The Li-ion battery pack will reduce the overall battery mass in the vehicle.
It is imported from countries like Bolivia, Chile and Argentina who got large reserves of lithium ores. Lithium-ion batteries actually account for 50 % of an electric vehicle’s cost, making them pricey relative to conventional vehicles if imported.
Lack of awareness
Lack of awareness of the advantages of switching over to electric vehicles is a prime challenge for adoption of electric vehicles. People are not aware of the decrease in the cost of driving an EV per kilometers and the potential savings which is expected to be Rs 25000 for every 6000 KMs travelled.
Along with that lack of awareness of the mechanism of electric vehicles in repair centers can cause some serious problems in the near future.
R&D in Electric vehicles – Rise of lithium ion batteries
With the rapid growth in the number of electric vehicle startups in the Indian electric vehicles market, the advancement in alternate fuel technology is at its highest pace in India.

The R&D in electric vehicles is at its exponential rate with the rise of the use of lithium-ion batteries in modern electric vehicles.
There is a rise in the use of lithium-ion batteries in modern electric vehicles due to the rapid charging capacity and high performance. Recent studies and development in the EV sector have led to the indigenous development of Lithium-ion batteries for use in Indian 2-wheelers and 3-wheelers.
Advantages of Lithium Ion battery in electric car are
- The Li-ion battery pack can handle hundreds of charge and discharge cycles
- No memory effect i.e. no need to completely discharging before recharging
- Higher energy capacity which offers a long-range.
- With the indigenous development of lithium-ion batteries, the initial cost of owning an electric car is expected to significantly reduce
Tesla in India – future of electric vehicles in india
After the announcement of its plan to enter India, EV giant Tesla recently registered as a company in Bengaluru on January 08, 2021. Tesla has settled a location for a manufacturing unit in Karnataka.

The launch of Tesla in India marks a new era in the electric vehicle industry in India, with hopes of healthy competition in the advancement of R&D in electric mobility in India. It marks the bright future of electric vehicles in India.
Ecogears take on the future of electric vehicles in India
With the ongoing interest of the Government and individuals towards the switch to electric vehicles in India, it can be expected that the country will turn into an electric nation by the next decade. Despite the advantages and challenges faced, the future of electric vehicles in india will continue to flourish in India as it is of prime need seeing the ever-growing pollution levels in the country.
The collaboration of the startups and automobile giants will lead to the development of high end electric vehicles and mitigating the primary challenges of EV adoption in India.
FAQ
The future of electric vehicles is in a good position in India, with the expected sale of EVs to jump over 30 million by 2030. Adoption of EVs will save up to 70 Billion on oil imports.
Some challenges for electric vehicles in India include:
– Initial cost of owning
– Charging time
– Uneven electricity distribution
– Lack of EV charging infrastructure
– Range Anxiety in consumers
– Lack of LIthium reserves for battery manufacture
– Lack of Awareness
With the concerned efforts of the government towards developing EV infrastructure and increasing the number of electric vehicles, there seems to be a bright future for electric vehicles in India.
Lately GOI, plays a crucial role in the development of EV infrastructure in India with the launch of various EV policies and initiatives. Primary concern of charging station is taken into account first.
Both have the potential of solving charging infrastructure issues in India. But charging stations can be considered the future of charging stations in India as of now seeing the rapid involvement of the government in deploying charging stations across the nation.
The government of India has undertaken multiple policies and initiatives to promote the manufacturing and adoption of electric vehicles in India like the launch of FAME II and the National electric mobility mission.
Yes, India is already making a major transition in electric vehicles with the adoption of major electric vehicle policies like FAME and the National Electric mobility mission.
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