(GIST OF SCIENCE REPORTER) ELECTRIC VEHICLE OPPORTUNITY

(SEPTEMBER-2025)

ELECTRIC VEHICLE OPPORTUNITY

NITI Aayog unveiled a landmark report – “Unlocking a $200 Billion Opportunity: Electric Vehicles in India”.

Key highlights:

The report estimates that India’s EV sector could generate up to $200 billion by 2035, creating jobs, enhancing manufacturing, reducing oil dependence, and lowering emissions.
EV sales have grown exponentially: from about 50,000 units in 2016 to over 2 million in 2024.
Globally, EV adoption has risen 20-fold in a decade, and India’s adoption level has moved from one-fifth of the global average in 2020 to two-fifths in 2024.
The government has set the EV30@30 target—to achieve 30% of total vehicle sales as electric by 2030.

Challenges in EV Adoption

High upfront costs of EVs compared to internal combustion engine (ICE) vehicles.
Charging infrastructure gaps, particularly in tier-2 and tier-3 cities.
Battery supply chain and localization issues, with heavy reliance on imports.
4. Financing barriers, especially for electric buses and trucks.
5. Technology & R&D gaps, where India lags behind global leaders.

Way Forward

Shift from Incentives to Mandates: Move beyond subsidies and adopt regulatory measures such as EV purchase mandates, stricter emission norms, and disincentives for ICE vehicles.
Innovative Financing Models: Encourage battery leasing, pay‑per‑use models, and dedicated EV financing lines for buses, trucks, and fleets.
Strengthen Charging Ecosystem: Establish city-level EV hubs and ensure nationwide charging coverage with both fast and slow chargers.
Boost Domestic Manufacturing: Invest in local production of batteries, motors, and components to reduce import dependence and generate jobs.
R&D and Innovation: Promote indigenous technology development in areas like solid-state batteries, recycling, and smart charging solutions.
Public Transport Electrification: Prioritize e-buses and e-rickshaws to maximize impact on emissions and urban mobility.

State‑Centric Implementation: Use IEMI rankings to encourage healthy competition among states, offering incentives for frontrunners and support for laggards.