Electric vehicles (EVs) play a crucial role in reducing dependence on fossil fuels and accelerating the transition to cleaner, renewable energy sources. Over the past decade, EVs have emerged as the most practical and reliable solution for decarbonising road transportation. EV growth across various geographies as a sustainable alternative to internal combustion engine (ICE) vehicles has been largely driven by Government subsidies and policy support.

•        Unlike some of the major automobile markets like China, Europe and the US, India has been relatively behind the curve when it comes to adoption of EVs. However, the scenario changed since FY2022, and India too is gearing up to adopt EVs in a meaningful manner.

•        India’s electrification journey is being driven by two-wheelers (2W) and three-wheelers (3W) currently as opposed to passenger cars in other markets. One of the key reasons include the role of the Government wherein it offered high subsidies for these segments vis-à-vis cars, which helped materially lower the total cost of ownership.

• Trend in EV sales in India (excluding e-rickshaws)