India’s EV Boom: Can Ambition Outpace Infrastructure and Supply Chain Realities?
India’s electric vehicle revolution is at a crossroads. While demand surges, gaps in charging infrastructure and battery material supply chains pose serious long-term risks.
NewsSutra
India’s electric vehicle (EV) industry is buzzing with optimism. Government subsidies, corporate investments, and an increasingly eco-conscious urban population are driving record sales of electric scooters, cars, and even buses. The country envisions a future where 30% of private vehicles, 70% of commercial vehicles, and 80% of two- and three-wheelers are electric by 2030. But amid this rapid acceleration, a critical question looms large: Is India ready for its own EV revolution?
Behind the headlines, the reality of inadequate infrastructure, supply chain bottlenecks, and policy inconsistencies threatens to deflate the optimism. Is the electric dream scalable, or is the ground reality too fragile to support it?
The Rise of India’s EV Ambitions
India’s push toward electric mobility has gained unprecedented momentum since 2021. Driven by policies like the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, PLI incentives for battery manufacturing, and state-level EV policies, adoption has surged.
EV sales in India crossed the 1.5 million unit mark in FY 2023-24, more than double the previous year. Two-wheelers form the largest share, followed by three-wheelers and commercial fleets. States like Maharashtra, Delhi, Tamil Nadu, and Karnataka have positioned themselves as EV hubs, offering subsidies and tax breaks to manufacturers and consumers alike.
This growth is also fueled by the rising fuel costs and the desire to reduce urban pollution levels. In cities like Bengaluru and Delhi, electric cabs and food delivery EVs have become increasingly common.
But beyond these bright spots, India’s EV push is beginning to show signs of structural strain.
Infrastructure: Charging Ahead or Running Behind?
Perhaps the biggest hurdle facing EV adoption is charging infrastructure. According to official figures, India has fewer than 10,000 public EV charging stations, a number grossly inadequate for a country targeting millions of EVs on the road in the next five years.
Compare that to China, which has over 1.8 million public charging points. Even smaller nations like South Korea or the Netherlands boast better coverage per vehicle.
In many Indian cities, EV users struggle to find accessible, functional chargers. Residential societies often lack the electrical capacity or the will to install them. Highway charging infrastructure is practically non-existent beyond a few urban corridors. Slow-charging units at public stations often lead to long queues, and fast-charging units remain expensive and rare.
The lack of standardized charging protocols, especially between two-wheelers and four-wheelers, further complicates the user experience. Many owners still rely on home charging, which restricts long-distance travel and overall usability.
The Battery Bottleneck: India’s Lithium Crunch
The heart of any EV lies in its battery, and India currently imports over 70% of its battery components. The biggest concern here is the supply of lithium, a rare metal required for lithium-ion battery production.
India has made some progress with recent lithium deposits discovered in Jammu and Kashmir and Karnataka. However, these sites are still under geological study and years away from commercial exploitation. Meanwhile, global demand for lithium is surging, driving up prices and creating intense competition.
China currently dominates the global lithium supply chain — from raw material extraction to battery cell manufacturing. India’s overreliance on imports from China not only poses a strategic risk but also increases costs and affects production timelines.
Efforts to set up domestic gigafactories have started under government-backed programs, but scale and technological expertise remain a challenge. Even recycling of used EV batteries, which could become a crucial source of lithium and cobalt, is still in its infancy in India.
Cost Factor: Are EVs Truly Affordable?
Although government subsidies have made EVs more affordable, the upfront cost is still significantly higher than their petrol or diesel counterparts. An average electric scooter costs between ₹90,000 to ₹1.5 lakh, even after incentives. For electric cars, the base models start at over ₹10 lakh — not exactly mass-market pricing.
Battery costs make up nearly 40–50% of an EV’s total cost, and with fluctuating lithium and cobalt prices, manufacturers struggle to maintain price parity. Without sustained government support and local battery production, affordability may become a long-term concern, especially for middle- and lower-income buyers.
Additionally, the resale market for EVs is underdeveloped, creating hesitation among potential buyers.
The Role of Private Sector vs. Policy Gaps
While many Indian startups and legacy automakers have jumped into the EV race, there is still a lack of coordination between private innovation and public planning. For instance, some cities have aggressive EV sales, but no roadmap for charging station deployment or battery swapping networks.
State-wise policy inconsistencies further hurt progress. While Delhi offers attractive purchase subsidies and road tax exemptions, other states have delayed reimbursements or revised subsidy structures. The removal of FAME-II subsidies for electric two-wheelers earlier this year triggered a drop in monthly sales for many top brands.
There is also insufficient investment in grid upgrades, which will become essential as EV adoption scales. India’s power grid is not yet equipped to handle the surge in charging demands, especially during peak hours.
Are EVs Truly “Green” in India?
The environmental case for EVs is clear — zero tailpipe emissions, reduced air pollution, and lower noise. But when viewed holistically, the picture is more nuanced.
Over 70% of India’s electricity still comes from coal. Until India transitions to a cleaner grid, EVs essentially transfer emissions from the tailpipe to the power plant. Moreover, battery production is energy-intensive and generates its own set of emissions.
End-of-life disposal and recycling of EV batteries also pose environmental risks if not handled properly. Without proper e-waste management systems, India risks substituting one environmental problem with another.
The Rural-Urban Divide
So far, the EV revolution has been an urban phenomenon. The lack of charging stations, electricity stability, and trained service centers in rural areas means that electric mobility is far from inclusive.
For India to achieve widespread adoption, it must focus on rural electrification, low-cost EV models, and decentralized charging solutions. Without this outreach, the EV sector will remain an elite-driven market rather than a truly transformational one.
What Needs to Be Done?
If India is serious about its EV ambitions, a few strategic interventions are urgently needed:
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Expand Charging Infrastructure: Rapid deployment of chargers in cities, towns, highways, and rural areas through PPP models.
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Strengthen Supply Chains: Secure critical minerals through global partnerships and accelerate domestic mining and recycling projects.
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Localize Battery Manufacturing: Invest in R&D and incentivize private firms to build scalable, indigenous battery production.
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Policy Harmonization: Create a unified national framework to align state and central policies for subsidies, charging standards, and grid support.
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Green Grid Transition: Accelerate renewable energy generation to ensure that EVs are truly clean from production to usage.
Conclusion
India’s electric vehicle boom represents a critical step in reducing carbon emissions, tackling urban air pollution, and reducing oil dependency. However, the country’s current infrastructure, supply chains, and regulatory frameworks are not yet robust enough to support the scale it aspires to reach.
If not addressed with urgency and foresight, the EV bubble may not burst entirely — but it could deflate, leaving behind unmet promises, wasted capital, and public frustration. The path to sustainable electric mobility in India is not just about selling more vehicles — it is about building a resilient ecosystem that can support them for decades to come.
India stands at a pivotal moment. Whether this revolution is enduring or illusory depends on the actions taken now.
