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Future of Electric Vehicle in India - The Complete Guide

Future of Electric Vehicle in India - The Complete Guide
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What is an Electric Vehicle?

An electric vehicle (EV) is one that runs on electricity rather than an internal-combustion engine, which creates power by burning a mixture of fuel and gasses.

As a result, such a vehicle is being considered as a possible replacement for current-generation vehicles in order to address challenges such as rising pollution, global warming, diminishing natural resources, and so on.

Though the concept of electric vehicles has been around for a long time, it has gotten a lot of attention in the recent decade due to the increasing carbon footprints and other environmental repercussions of fuel-based vehicles.

In this blog, we will be understanding everything about the Future of Electric Vehicles.

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Why Electric Vehicles are Boon to India?

The discussion over whether e-vehicles are beneficial or harmful for India does not need many conclusive factors.


  • India has six of the world’s ten most polluted cities. The main cause of this growth in pollution is the use of fossil fuels. Almost all vehicles in India, including two-wheelers, four-wheelers, and trains in some places, operate on fossil fuels.
  • India’s Oil Import-overall India’s dependency on crude oil imports is 86%, which implies the country meets just 14% of its own energy needs; the rest is imported. However, these imports need the use of US dollars, resulting in a reduction in the Indian Forex Reserve.
  • Global Climate Change, Heat Emissions, the Paris Climate Accord, and the impact of sophisticated Artificial Technology on Self-Driving Cars are all discussed. E-vehicles are definitely the next transportation revolution.

All of these considerations support the transition from fossil fuels to electric automobiles. All developed countries are already transitioning to electric automobiles.

Electric Vehicles Future in India

Most Indian buyers believe that an electric vehicle will be ready by 2023, but the majority also believe that it would no longer be available until 2025. Consumers in India are looking for a lower price for EVs than those in other countries, with the global average tipping price for EVs being $36,000. (around Rs27 lakh).

The cost of lithium-ion batteries is roughly $250/kWh globally, which translates to approximately Rs5.7 lakh in battery prices alone. Currently, lithium-ion batteries account for half of the cost of an electric vehicle, making them more expensive than conventional vehicles.

The safety of the batteries against explosion serves as a stumbling block for Li-ion batteries. Charging is a significant barrier for EVs in India, and a lack of charging stations may also be considered, rendering them impracticable or significantly less feasible for long-distance rides.

Furthermore, some EVs are slower than standard gas-powered engines.

At a critical moment, as many nations are working to free Mother Earth from the clutches of carbon emissions and CO2, India should take the lead by transitioning to EV mobility, making the country a greener and cleaner ecosystem.

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Electric Vehicles Market Share in India

The Indian automobile industry is the world’s fifth biggest, and it is anticipated to become the third largest by 2030. According to the India Energy Storage Alliance (IESA), the Indian EV market would develop at a 36% CAGR.

As India’s population grows and demand for automobiles increases, reliance on conventional energy supplies is no longer a viable option, as the country imports over 80% of its crude oil.

By 2030, NITI Aayog expects to reach 70% EV market penetration for all commercial vehicles, 30% for private vehicles, 40% for buses, and 80% for two and three-wheelers. This is consistent to reach net zero carbon emissions by 2070.

The Indian electric vehicle market was worth USD 1,434.04 million in 2021, and it is predicted to grow to USD 15,397.19 million by 2027, at a CAGR of 47.09% during the forecast period (2022-2027).

Electric Vehicles Market Share in India

In India, Uttar Pradesh had the biggest proportion of EV sales in 2021, with 66,704 units sold across all categories, followed by Karnataka with 33,302 units and Tamil Nadu with 30,036 units.

Uttar Pradesh dominated the three-wheeler category, while Karnataka and Maharashtra lead the two-wheeler and four-wheeler segments, respectively.

The projected move to electric vehicles by the Indian government will cut carbon emissions by 37% by 2030.

The EV deployment must include all sorts of automobiles on Indian roadways. Apart from carbon emissions, diesel and gasoline are deadly because they emit harmful air pollutants.

EVs emit no tailpipe emissions when compared to fossil-fuel vehicles, which emit dangerous air pollutants such as carbon monoxide, nitrogen oxide, and particulate matter.

According to the World Health Organization, 13 of the top 20 worldwide cities with the worst air pollution are in India. Cities will be able to breathe easier with EVs in place. With better grid electricity, EVs looks to be a potential option for the urban environment.

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State-Wise Subsidy for Electric Vehicles in India

StatePer kWh of battery capacityMax SubsidyRoad Tax Exemption
Andhra PradeshNoNo100%
DelhiRs 5,000Rs 30,000100%
MaharashtraRs 5,000Rs 25,000*100%
Uttar PradeshNoNo100%
OdishaNARs: 5,000100%
AssamRs 10,000Rs 20,000100%
GujaratRs 10,000Rs 20,00050%
BiharRs 10,000Rs 20,000100%
MeghalayaRs 10,000Rs 20,000100%
RajasthanRs 2,500Rs 10,000NA
West BengalRs 10,000Rs 20,000100%
Madhya PradeshNoNo99%

Under their rules, states like as Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab, and Uttar Pradesh do not provide any direct subsidies to electric two-wheeler customers.

Road tax for electric cars is totally eliminated in most states where the program has been implemented, with the exception of Gujarat and Kerala, where buyers must pay 50% of the total road tax amount.

Meghalaya, Assam, Gujarat, and West Bengal provide a greater per kWh subsidy of Rs 10,000, with a total subsidy available of Rs 20,000. Bihar’s EV policy, which has yet to be authorized, promises comparable advantages.

Rajasthan provides a subsidy of Rs 5,000 for two-wheelers with a battery capacity of 2 kWh and up to Rs 10,000 for those with a battery capacity of 5 kWh or above. Odisha, on the other hand, grants a Rs 5,000 fixed subsidy.

COVID-19’s Impact on the Electric Vehicle Industry

During the period of COVID-19, we saw how the environment improved as a result of lower emissions from petrol and diesel-powered vehicles and industries in India. The pollution has completely disappeared in several cities.

People in many parts of India should be able to see faraway mountains that they have not been able to see in years due to the atmospheric stumbling blocks caused by the discharge of smoke from fossil-gas-powered automobiles.

We will be able to research isolated areas if we move to clean-experienced electric vehicles. EVs remain a vital aspect of long-term solutions for a greener, cleaner India for the sustainability of its people.

Here’s an Example

The major aspect here is a range, which is 15km on average, but a city cab can also do 300km every day.

In an ideal world, we may have a lower battery % and must recharge on a regular basis. In actuality, taxi and fleet drivers may earn money overnight, and even individual clients might have charging options limited without fast charging.

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Drawbacks for the transition to Electric Vehicles

The following problems must be addressed if we are to transition to EVs by 2030, as promised by the Government.

Drawbacks for the transition to Electric Vehicles

Electric vehicle charging infrastructure

In the current circumstance, if a person needs to go a long distance because his e-vehicle has a low charge. His options for recharging are quite limited. In India, there are around 70,000 filling stations spread among 718 districts.

A gas station may be found every 5-6 kilometers. On the other side, there is only 300 electric vehicle charging outlets. A person driving an electric car will have a difficult voyage in such a circumstance.

The government is taking measures to address this issue, but the pace is slow.

Higher Costs

Let’s say a person wishes to buy a medium automobile in India, such as a Maruti Suzuki Swift. The vehicle’s on-road pricing in the fuel form is 6-7 lakhs. Tesla’s electric automobile, on the other hand, begins at 60 lakhs in India.

 India is a price-sensitive market, and the transition to e-vehicles would be sustainable only if it is inexpensive.

Lack of a Skilled Workforce

In terms of electric cars, India has a trained labor shortage. The technology is new, and prominent educational institutions are unable to adapt to the world’s developing EV technology.

Limited Technology

India has a major technological dilemma. A typical Maruti Suzuki Swift Petrol vehicle has a fuel tank capacity of 40 liters. The automobile can travel up to 600 kilometers if the mileage is 15 km per liter.

Similarly, in terms of technology, will a totally charged car go the same distance? Ather is a well-known EV manufacturer in India. According to the business, it can travel up to 120 kilometers on Indian roads on a full charge.

Check out our blog on the advantages & disadvantages of Electric vehicles!

Import of electric vehicle components and materials

Due to a lack of technology, India must import the majority of e-vehicle supplies. The battery of an EV is quite important. At the moment, all batteries use Lithium-Ion technology.

Again, India’s lithium reserves are uncertain. As a result, India must import the majority of battery and EV electrical components from China, resulting in India’s strategic reliance on China.


The Future of Electric vehicles is bright and shining! Manufacturing businesses are putting more effort into transitioning from traditional automobiles to electric vehicles. There are several advantages to owning an electric car with the appropriate level of functionality and infrastructure.

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