India’s transition towards electric vehicles (EVs) is stuck in the slow lane — and the numbers are beginning to reflect the strain. While headline penetration has improved over the past few years, the pace remains far below what is needed to meet the government’s 2030 ambitions, particularly in the crucial passenger vehicle segment.
India began its green mobility push in 2013 with the National Electric Mobility Mission, with EV penetration picking up pace in recent years. A Mint analysis of vehicle registration data from the Vahan dashboard shows the share of overall EV sales has risen from under 1% until 2020 to 8% in 2025. Adoption accelerated after 2021 amid a stronger policy push.
Compare this with the government’s ambitious target of 30% EV penetration by 2030—it’s an unachievable goal.
“Realistically, the aim of 30% EVs by 2030 looks difficult to achieve, despite strong year-on-year growth across segments, said Rajat Mahajan, partner and auto sector leader at Deloitte. "Crossing 15% by 2030 in passenger vehicle would be challenging unless there is a significant push on charging infra, narrowed cost gap with internal combustion engine (ICE) or a policy push through Corporate Average Fuel Efficiency (CAFE) norms.”
The concern is not just about missing a numerical target. Slower adoption could dilute India’s decarbonization roadmap, delay investments in domestic EV manufacturing ecosystems, and leave the country more exposed to fossil fuel volatility.
Uneven adoption
A closer look beyond the headline number tells an uneven story.
While three-wheelers have shown a sharp adoption rate, with nearly 61% of all three-wheelers sold in India being electric, largely driven by the commercial segment.
On the other hand, two-wheelers just accounted for 6% of sales and passenger vehicles barely made up 3%. The low pick up in the four-wheeler segment is mainly due to range fears as the charging network in the country remains sub-par.
“All the policy support has been directed towards mass adoption, and this is where India moves in terms of public transportation,” said Saket Mehra, partner at Grant Thornton. “However, the government realizes it cannot enforce electric vehicle adoption on each individual, but it can certainly push fleet operators.”
So far, the government has launched three major policies for faster EV adoption: Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) I scheme in 2015, followed by FAME II in 2019. FAME I focused on early market development through demand incentives and initial charging infrastructure, while FAME II aimed at electrifying public and shared transport with a larger budget.
FAME was replaced with the PM E-DRIVE scheme in 2024 that emphasizes charging infrastructure, battery-swapping, and indigenous manufacturing.
Data shows slow progress even among major cities with over 1 million population size. Only eight of the 47 cities (including Delhi) have crossed the 10% EV adoption mark in 2025.
Uttar Pradesh tops the list with several cities Lucknow, Agra, Kanpur, and Meerut in the list despite limited charging facilities pushed by higher two-and three-wheeler adoption rate.
Delhi and Bengaluru feature among the top five with double-digit EV adoption, but other metropolitan cities Mumbai, Kolkata, and Chennai lag behind with just 5-8% penetration.
Facility fissure
One of the main reasons why mass adoption of EVs remains slow is the lack of proper infrastructure, particularly charging stations, causing range anxiety among consumers.
Government data shows there are over 29,000 charging stations installed across India, of which less than a third are fast chargers. Data shows that even in best-performing states, there are only 9 charging stations per 1,000 EVs.
In states like Uttar Pradesh and Bihar where there are decent signals of EV adoption, there are only about 1-2 charging stations. This means long queues, unreliable access, and the fear of running out of charge, which has made buyers choose hybrids over EVs.
Hybrid vehicles have consistently outpaced EVs in their share of passenger vehicle sales, reaching 6.7% in 2025 against EV’s 3.2%, despite hybrids attracting an 18% GST rate compared to just 5% for EVs.
Hybrid offers the comfort of a safety net, a bridge technology that Indian buyers seem willing to pay a premium for, Mahajan said.
Another development may have also played a role in limiting EV adoption in the country. After the goods and services tax (GST) rate cuts from 28% plus cess to flat 18% narrowed the price gap between conventional vehicles and EVs, disincentivizing EVs.
It is also worth noting that unlike global markets where plug-in hybrids and range-extenders offer electric-only driving, India’s hybrid market is dominated by conventional petrol-based hybrids that deliver little to none of the core benefits of electrification. In effect, buyers are opting for fuel efficiency rather than a genuine green transition.
Policy pivot needed
The government's policy response so far has leaned heavily on the demand side. FAME I and II and, to a large extent, PM E-Drive have focused more on reducing upfront cost of EVs by incentivizing buyers.
Amit Bhatt, managing director India at the International Council of Clean Transportation (ICCT), argues that demand-side policies alone will not be enough, mandates such as zero-emission vehicles are strongly needed, and the CAFE norms, which mandate automakers to limit the weighted average CO2 emissions across their entire fleet, are a good example.
Without stringent supply-side policies, India may be able to achieve only marginal gains with demand side push.
“Based on our own analysis, the latest draft (of CAFE norms)—issued in September last year—effectively targets around 10–11% electrification by 2030,” Bhatt said.
“If we build an ecosystem where charging is reliable, range anxiety is reduced, and clean transport is clearly prioritised, EV adoption will naturally accelerate.”