World EV Day: Can India Become an EV Powerhouse?

Riding on the back of increasing consumer awareness, ambitious schemes and increased investment from domestic and international players, India's electric vehicle (EV) landscape tells a tale of growth and evolving user preferences. However, the industry is also seeing promises and challenges as India transitions towards sustainable mobility, as suggested by recent market data.

On World EV Day, it is pertinent to note that India is the world's third-largest auto market and is on the path to cut oil imports and reduce its carbon footprint. When it comes to electric scooters and e-auto rickshaws, India is moving on the fast lane. 

Also read: Entry-Level Cars To Become 8.5% Cheaper After GST Revision: Crisil Report

The numbers speak volumes about this transformation. According to S&P Global Mobility estimates, India's 2024 passenger EV production increased by 22.5 per cent year-over-year, to about 125,500 units. 

Yet the journey isn't without its roadblocks -- according to the latest report by the Federation of Automobile Dealers Associations (FADA), the Indian EV market saw modest growth during August, with sales numbers revealing stagnant monthly performance while maintaining steady annual growth.

Govt. Policies Drive Transformation

The Centre has set an ambitious target for EVs to make up 30 per cent of total passenger vehicle sales by FY30, supported by plans for subsidies, financing options, and infrastructure development.

The FAME-II programme was operational from April 2019-March 2024 and it brought financial benefits for EV purchases across two-, three-, and four-wheeler segments, allocated funding for electric bus acquisitions, and supported charging infrastructure development. The initiative facilitated the deployment of 14,35,065 electric two-wheelers, 1,65,029 three-wheelers, and 22,644 four-wheelers. Out of 6,862 approved electric buses under the programme, 5,165 units have been commissioned and are currently operational.

Building on this foundation, the Production Linked Incentive (PLI) programme, introduced in September 2021, was an attempt to increase local production of automotive technologies and draw capital investment into the industry.

The policy momentum continued into 2024. In March 2024, the Centre made a notable move by lowering EV import tariffs to promote local production. India reduced import duties on EVs exceeding US$35,000 from 100 per cent to 15 per cent, depending upon manufacturers pledging significant domestic investments.

The results of these policy interventions are resonating across the industry ecosystem. 

"Government initiatives such as PM E-DRIVE, Production-Linked Incentives for auto components and battery storage, and the scheme to promote manufacturing of electric passenger cars have accelerated India's EV trajectory, attracting domestic manufacturers as well as foreign investment and technology transfer. With public charging infrastructure doubling in the past two years, India is now firmly on the path to becoming the world's third-largest EV market," Vikram Handa, Managing Director, Epsilon Advanced Materials, said in a statement.

Echoing similar sentiments, Gaurav Dolwani, CEO and Founder, LICO Materials said: “Today, India is the third largest car market globally, just trailing the US and China. This EV Day, we must take stock of India’s remarkable growth and the journey ahead. In the last year alone, electric passenger vehicle sales jumped by 80 per cent, underscoring strong consumer demand and a growing shift towards smarter mobility. Government policies such as PM E-DRIVE, FAME-II, and the Production Linked Incentive Scheme are crucial in propelling manufacturing and adoption, aligning with the country’s vision for self-reliance. India is on track to lead the global EV revolution with over $200 billion in investment opportunities in the horizon."

'Revolutionary' Battery Technology

Innovation in battery technology and management is emerging as another crucial pillar of India's EV ecosystem. At the Battery Summit 2025, hosted by the World Resources Institute (WRI) India, Tata Elxsi unveiled a technology platform named "Battery Aadhaar" to digitise battery identification, tracking, and circular economy processes. The initiative was demonstrated by Tata Elxsi alongside collaborators including Tata Motors, Tata AutoComp Systems, IIT Kharagpur, WRI, LOHUM Cleantech, NUNAM Technologies, and Oorja Energy.

This breakthrough addresses multiple challenges simultaneously, as mentioned by industry experts.

"The Battery Aadhaar framework marks a transformative leap in India's EV journey, tackling critical challenges of safety, financing, and battery circularity. Inspired by the European Union's battery passport system, it assigns a unique digital identity to every battery, capturing details such as chemistry, usage history, state of health (SoH), safety incidents, and recycling or second-life status. With EV adoption surging, India's lithium-ion battery demand is projected to hit 381.4 GWh by 2030, including a 49.2 GWh market for second-life applications. 

"Battery Aadhaar will standardise digital records with tiered data access: public users can view limited, non-sensitive information; licensed entities like OEMs, financiers, and insurers can access anonymised health metrics; and regulators will have full visibility for compliance, safety, and policymaking," said Anmol Jain, Senior Research Associate, Alliance for an Energy Efficient Economy.

Sustainable Battery Ecosystem

This technology extends far beyond simple tracking, positioning India as a leader in sustainable mobility solutions.

"This end-to-end traceability will enable accurate assessment of used batteries, guiding decisions on reuse, refurbishment, or recycling. By enhancing supply chain transparency and enabling recovery of critical minerals, it can reduce import dependence and strengthen resource security. Battery Aadhaar is poised to become the backbone of a trusted, data-driven battery ecosystem, setting the stage for sustainable EV growth in India," Jain noted.

What OEMs Have To Say 

"EV three-wheelers, both passenger and cargo, along with new-age electric trucks -- especially in the 1-1.5 ton category -- will be the real growth drivers of this market, powering clean last-mile and mid-mile logistics. The future of mobility is about building green businesses that deliver value to society, economy, and the planet — and together, we must accelerate this journey towards a cleaner tomorrow," Uday Narang, Founder & Chairman, Omega Seiki Mobility, said in a statement.

"At Mahindra Last Mile Mobility Limited, we are proud that our 2.7 lakh plus electric commercial vehicles have clocked 4.5 billion kilometres, preventing more than 185 kilo metric tonnes of CO₂ emissions -- an impact equivalent to planting 4.3 million trees," said Suman Mishra, Managing Director & CEO, Mahindra Last Mile Mobility Ltd.

Balbir Singh Dhillon, Head of Audi India said: "Electric mobility in India has witnessed steady demand and we believe the next decade will be transformative for the industry as well as for customers. ‘Charge my Audi’ initiative gives access to over 6,500 charging points across the country, offering customers the confidence and convenience they need. We see this as just the beginning."

"At GreenCell, we believe that the time to act is now. Every kilometre travelled on an EV contributes to cleaner air, reduced oil dependence, and a stronger fight against climate change," Devndra Chawla, MD & CEO, GreenCell Mobility said.

The Road Ahead

As India observes World EV Day 2025, the slew of policies that favour local production, growing infrastructure, technological innovation and industry investment creates an opportunity for the country to establish itself as a global EV manufacturing and adoption hub. The foundation has been laid and the momentum is building.