India’s journey towards widespread electric mobility adoption is witnessing growth across geographies. The government’s target for electric vehicles to comprise 30 per cent of private cars by 2030 emphasizes the importance of this sector in achieving sustainability and net-zero carbon goals. Programs like the PM E-Drive Scheme aim to make EVs accessible and appealing across diverse regions. The effect of such initiatives and strategic support is fueling the adoption of EVs beyond the perceived notion of them being limited to cities.
A closer look at the VAHAN data for EV sales across different city tiers reveals distinct and interesting patterns. In 2020-21, Tier 1 cities led EV sales, capturing 57 per cent of the market share. However, as of 2024-25, a shift has been witnessed as Tier 2 and Tier 3 cities' contribution to the market has seen a rise. Tier 2 cities' share grew from 31 per cent in 2020-21 to 49 per cent in 2024-25. Similarly, Tier 3 cities went from 12 per cent to 17 per cent. This shift illustrates the expanding reach of EVs beyond metropolitan areas, making EV adoption a truly pan-Indian phenomenon.
Building a Comprehensive EV Ecosystem
For India’s EV journey to succeed, it is essential to increase the confidence of fence-sitters towards the benefits of e-mobility. To achieve this, a two-fold approach needs to be followed, in which, for starters, a comprehensive ecosystem needs to be built that addresses challenges to adoption across rural and urban areas. The second prong needs to focus on technological advancements that are helping overcome traditional barriers such as range anxiety and affordability. Newer EV models now offer longer battery range, faster charging speeds and are priced competitively against equivalent ICE vehicles, making EVs a practical choice for more Indians.
One of the major growth catalysts towards EV adoption is the expansion of charging infrastructure. As of early 2024, India has over 12,146 public charging stations. However, a report projects that India will need 1.32 million charging stations by 2030. This requires continued collaboration between manufacturers, charge point operators, and government bodies to bridge infrastructure gaps, especially in rural areas where access to charging facilities remains sparse.
Urban Adoption: Leading the Charge
In urban centers, EV adoption is accelerating, driven by air quality concerns and expanding infrastructure. As cities struggle with rising pollution, EVs offer a practical, zero-emission solution that supports cleaner and healthier living. Incentives like the reduced GST on EVs (down to 5 per cent from 12 per cent) and lower registration fees in various states are making them an appealing choice for urban consumers. EVs are also becoming essential to urban mobility solutions, powering fleet services, ride-hailing operations, and public transit systems, where their efficiency and low emissions make a substantial impact.
Furthermore, EVs offer multiple benefits, including lower running and maintenance costs due to fewer moving parts, reducing servicing needs. Furthermore, charging an EV is generally cheaper than refueling a conventional vehicle. Additionally, the low noise, vibration, and harshness (NVH) levels of EVs create a calm and comfortable driving experience, ideal for city commutes. This combination of affordability, comfort, and sustainability makes EVs an efficient and eco-friendly transport option that matches the needs of urban drivers.
Rural Adoption: Unlocking the Potential
The rural landscape presents significant opportunities for EV adoption. The reduction in the price gap between electric and ICE vehicles is increasing their appeal to cost-conscious rural consumers. The convenience of more space as compared to urban landscape also factors in allowing easy installation of home chargers, which reduces their reliance on public infrastructure.
Furthermore, the government's recent initiative, PM Surya Ghar: Muft Bijli Yojana, to subsidise rooftop solar systems, is supporting this transition. With a rooftop solar unit, a user can effectively charge their vehicle at zero cost, therefore truly achieving zero-emission mobility at no running cost to bear. Certain state governments are also providing additional support for residential solar, making it financially viable for rural consumers to charge their EVs using solar power, enabling further adoption.
Conclusion
The jump of 42 per cent in EV sales across India in FY2024 highlights the trend of its widespread adoption across geographies. With a projection to reach Rs. 3,18,000 crore by 2030, the EV market signals not only rising demand but also a deeper commitment to sustainability. To support this transformation, the government's focus on domestic production under the ‘Make in India’ initiative, along with GST reductions on EVs and charging infrastructure, will strengthen the ecosystem. Meanwhile, stakeholders across the board coming together to expand the charging station network will enhance accessibility.
For this transition to succeed, a holistic approach is necessary — one that supports the momentum in urban areas while unlocking the vast potential in rural regions. As EV technology continues to evolve, reducing costs and increasing range, we can look forward to a seamless integration of electric mobility, propelling India into an era of sustainable and inclusive transportation.
The author is the Chief Commercial Officer at Tata Passenger Electric Mobility.
