Growth and Challenges of Electric Vehicles in India: An In-Depth Study

Abstract

The future of Electric Vehicles (EVs) in India represents a paradigm shift towards sustainable transportation and reduced carbon emissions. With rising environmental concerns, government initiatives, and technological advancements, India is poised to witness significant growth in the EV sector. This paper highlights the current scenario, government policies, challenges, block diagram representation, and future prospects of electric vehicles in India. Since EVs are roughly three to four times more efficient than comparable internal combustion engine vehicles (ICEV), have zero tailpipe emissions, and are less dependent on petroleum due to their high fuel diversity, vehicle electrification is revolutionizing the transportation sector in terms of energy and the environment. The creation of power is flexible. The power industry and the larger energy system are both significantly impacted by vehicle grid connection. Additionally, the Indian government intends to expand the use of electric vehicles in the automotive sector. This essay discusses the prospects and difficulties facing the Indian market for electric automobiles. This study discusses the various economic, social, technical, and environmental variables influencing the Indian market for electric vehicles.

Introduction

India is actively promoting Electric Vehicles (EVs) to combat air pollution, reduce dependence on fossil fuels, and enhance energy security. Government initiatives like FAME, tax incentives, and EV infrastructure development have accelerated EV adoption, positioning India for a clean mobility revolution.

2. Literature Review

Key findings from research and studies:

• Policy Support: Government incentives are crucial in offsetting high initial EV costs.

• Technology Barriers: Battery tech (especially lithium-ion) affects price and performance. India's dependence on imported components limits scalability.

• Future Technologies: Solid-state batteries offer promising solutions to existing EV limitations.

• Market Insights: The electric two-wheeler segment dominates and is critical for growth.

• Infrastructure Challenges: Lack of charging stations is a major hurdle.

• Economic Viability: Financial incentives can lower overall EV costs.

• Environmental Benefits: EVs can significantly reduce pollution in high-emission sectors like logistics and public transport.

3. Classification of EVs

EVs are categorized based on their engine and powertrain technology:

• Battery Electric Vehicles (BEVs): Fully electric, no fuel used (e.g., Nissan Leaf).

• Plug-in Hybrid Electric Vehicles (PHEVs): Use both an electric motor (chargeable) and a fuel engine (e.g., Mitsubishi Outlander PHEV).

4. Current Scenario in India

The Indian EV market has grown rapidly, especially in two-wheelers and three-wheelers. Automakers are investing in EV production and charging infrastructure. However, four-wheeler and bus adoption is still limited but rising.

5. Government Policies and Initiatives

India’s government supports EV adoption through:

• Tax Reductions: GST on EVs lowered from 5% to 3%, EV batteries exempted from excise duties (2025 plan).

• Subsidies: FAME-II, state-level incentives, and PLI schemes to boost local battery manufacturing.

• Incentives for Manufacturers: Encouraging foreign investment and domestic EV production.

6. Challenges to EV Adoption

Despite progress, several challenges persist:

• A. Charging Infrastructure: Inadequate availability, especially in rural areas, causes range anxiety.

• B. High Initial Cost: Lithium-ion batteries make EVs more expensive upfront, deterring buyers despite long-term savings.

• C. Battery Limitations: Long charging times and battery degradation remain concerns.

• D. Consumer Awareness: Misconceptions about performance, reliability, and value slow adoption.

• E. Limited EV Models: Few affordable models in the Indian market, especially in small car and two-wheeler segments.

7. Future Prospects and Opportunities

• India’s EV market is expected to grow significantly by 2030.

• Rising fuel prices, technological innovation, and global climate goals create favorable conditions.

Conclusion

The future of Electric Vehicles in India is promising, driven by supportive policies, innovation, and growing awareness about environmental sustainability. However cooperation between the government, business community, and consumers will be necessary to overcome economic and infrastructure obstacles. India has the potential to become a worldwide leader in the EV revolution with careful preparation.

References

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Copyright

Copyright © 2025 Rohan Yadav, Aryan Prajapati, Manish Kumar, Deepak Prajapati, Govind Kumar Maurya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.