Why India must drive the future with EVs
Globally, the shift to electric vehicles (EVs) is undeniable. According to the International Energy Agency's Global EV Outlook 2025, over 50% of new cars sold in China last year were electric. Europe has surpassed 20%, and the US has reached 10%. This is no longer a niche trend: It is the new industrial reality. The reasons are clear: the need to meet climate targets, improve air quality, and foster green industrial growth. With zero tailpipe emissions and nearly three times the efficiency of ICE vehicles, EVs are central to this transformation.
To its credit, India has taken important steps. Over the past decade, the government of India has invested more than ₹75,000 crore in EV-supportive policies through initiatives such as FAME, PLI, PM E-Bus Sewa, and the recently launched ₹10,900 crore PM E-DRIVE scheme. State governments have also introduced incentives and EV-friendly policies, reinforcing the national vision.
These efforts are beginning to show results. In 2024–25, EVs accounted for 6.1% of two-wheeler sales, 23.4% of three-wheelers, 2% of passenger cars, and 5.3% of buses — an overall market penetration of 7.5%. While encouraging, this is still far from sufficient. To meet climate goals, reduce oil imports, improve air quality, and remain globally competitive, India must dramatically accelerate this transition.
Indian manufacturers such as Tata, Mahindra, Ather, and Bajaj are rising to the challenge, investing in EV platforms, battery production, and critical components. However, some automakers continue to resist the shift and instead focus on interim technologies like hybrids — an unnecessary distraction India cannot afford.
Conventional hybrid vehicles — misleadingly marketed in India as strong hybrids — use small batteries (often under 2 kWh) that are either charged by the petrol engine or through regenerative braking to assist it. This is less than the battery capacity of many electric scooters.
In contrast, modern EVs typically use batteries over 50 kWh. Moreover, hybrids are not clean vehicles. They still burn fossil fuels, emit pollutants, and offer only modest efficiency gains of 15–20%, which diminish over time due to engine wear and rising emissions. EVs, on the other hand, are significantly more energy-efficient, have lower running costs, and become cleaner as India's electricity grid increasingly relies on renewable energy.
They reduce oil dependence, enhance energy security, and support a robust, job-rich value chain encompassing battery manufacturing, charging infrastructure, digital services, and recycling. Therefore, it's time for India to leapfrog directly to transport electrification — just as it jumped from landlines to mobile phones, bypassing pagers.
The recent restriction on rare earth element (REE) exports by China has highlighted global vulnerabilities. These elements are essential for batteries. While China may not dominate raw production, it controls the global processing of lithium (65%), cobalt (70%), and graphite (90%). This presents an opportunity for India. The only way India can claim a significant share of the global clean mobility value chain is by making a decisive push toward full vehicle electrification.
India must act now to ensure that the EV transition proceeds at the speed and scale required. Four key policy actions can drive this momentum.
Strengthen CAFE standards: Corporate Average Fuel Efficiency (CAFE) norms are powerful tools to push automakers towards cleaner technologies. The Bureau of Energy Efficiency (BEE) must finalise updated standards that eliminate super-credits for hybrids and other non-zero-emission vehicles. Only true zero-emission vehicles — EVs — should qualify for incentives. A biannual review mechanism should ensure these standards evolve in line with technology and international best practices.
Mandate ZEV sales in Delhi NCR: Delhi NCR, grappling with severe air pollution, must lead by example. A Zero-Emission Vehicle (ZEV) mandate requiring manufacturers to sell a minimum share of EVs — eventually phasing out ICE vehicles within a decade — can accelerate adoption. This approach has succeeded in California and China. It's time India replicates it in its most polluted urban centres.
Enable credit trading among OEMs: A dynamic credit trading system among manufacturers can reward early movers and hold laggards accountable. Companies exceeding EV targets should be able to sell credits to those falling short, creating a performance-driven, market-based system that encourages innovation and long-term EV investments.
Strengthen the charging infrastructure network: India must address both private and public charging needs. Data from the US and Indian EV manufacturers show that over 85%–90% of charging happens at home. Enabling access to charging in residential parking is thus crucial. India should adopt a right-to-charge policy, similar to Norway, ensuring that EV owners have guaranteed access to charging facilities. In parallel, all national highways and expressways must be electrified to support long-distance travel.
EVs are a 50-million-jobs opportunity. This transition is not just about reducing emissions — it represents a once-in-a-generation economic opportunity. The EV ecosystem could generate over 50 million jobs by 2030 across sectors such as battery technology, research and development, software, maintenance, and services. If India leads now, it can become a global hub for clean mobility. Consumers will benefit too. As production scales and costs fall, EVs will become more affordable. Combined with India's growing renewable energy capacity, EVs will become cheaper to operate — especially when paired with smart charging and domestic battery manufacturing.
It is time for India to fully commit to an electric future.
Amitabh Kant is former CEO, Niti Aayog and served as India's G20 Sherpa. The views expressed are personal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Syrma SGS eyes India's largest PCB unit in Andhra Pradesh in Rs 1,800 crore play
ETtech Chennai-based electronics manufacturing services firm Syrma SGS Technology is looking to invest Rs 1,800 crore to set up India's largest multi-layer printed circuit board (PCB) and copper clad laminate (CCL) manufacturing unit in Andhra Pradesh, said people familiar with the integrated manufacturing facility is likely to be commissioned by 2026-27 and is expected to be located in Naidupeta, near Tirupati district, to capitalise on the close proximity to Chennai, an established hub for electronics manufacturing.'Syrma SGS is looking to partner with South Korean firm Shinhyup Electronics, which will bring its technological expertise to the venture,' said one of the persons, who did not wish to be introduced. 'They have applied for approval under the government's component PLI (production-linked incentive) scheme."Shinhyup Electronics is primarily engaged in the manufacturing of PCBs for automobile electronic equipment, home electronic appliances, IT and medical services, as per their said Syrma SGS has been engaged in advanced discussions with the Andhra Pradesh government to secure incentives including capital subsidy, electricity duty incentives and skilling sent to Syrma SGS remained unanswered till press time.A significant aspect of the investment is the integrated manufacturing approach. In addition to producing multi-layer PCBs, Syrma SGS will manufacture CCL, a fundamental raw material for PCB production. The backward integration could reduce dependency on imports and ensure a stable, cost-effective supply chain for advanced PCBs within India.'The company will also be developing a research and development facility for new engineering,' said the person. 'The PCBs from this plant will be used in new-age verticals like smart metering, healthcare and medical devices, automotives and electric mobility.'Earlier this year, Andhra Pradesh secured Rs 14,000 crore to establish India's first private semiconductor manufacturing facility as it aims to aggressively attract fresh investments in the project is a joint venture between India's Indichip Semiconductors and Japan-based YITOA Micro Technology. The facility will be located at the Orvakal Mega Industrial Park in Kurnool district and will primarily focus on manufacturing silicon carbide chips, which are crucial for energy-efficient technologies such as electric vehicles and renewable energy.
Indian Express
3 hours ago
- Indian Express
Defer rollout: Mahindra to government on more accurate emissions test
Automaker Mahindra & Mahindra has requested the government to defer the implementation of a more accurate emissions measuring standard for passenger and light commercial vehicles, proposed to take effect from April 2027, The Indian Express has learnt. The draft norms, issued by the Ministry of Road Transport and Highways (MoRTH) on April 28, introduce a new testing procedure as part of enforcing the next phase of Bharat Stage (BS) VI standards. The Worldwide Harmonised Light Vehicles Test Procedure (WLTP), which the European Union adopted in 2018, ensures that emissions of carbon dioxide, nitrogen oxides (NOx), and particulate matter from vehicles on the road more closely reflect results recorded in laboratory conditions. In its response to the draft notification, Mahindra & Mahindra, in a letter dated May 26, urged the Ministry that a 'standalone migration to WLTP be avoided' and its implementation be deferred. The automaker also suggested that the government wait until the upcoming Corporate Average Fuel Efficiency (CAFE) phase 3 norms — currently under discussion — clarify their position on adopting WLTP. While both CAFE norms and BS VI rules currently rely on the Modified Indian Driving Cycle (MIDC) for testing, they serve different purposes: CAFE focuses on fuel efficiency and CO2 emissions, whereas BS VI covers a broader range of emissions, including particulate matter and NOx, which are key pollutants. Although CAFE 3 norms have not yet been notified, the Bureau of Energy Efficiency (BEE), the nodal agency framing them, proposed in June 2024 a shift from MIDC to WLTP starting March 31, 2027. 'Migrating to WLTP brings the emission and CO2 measurement closer to real world driving conditions. However, the emission worthiness of vehicles in Real Driving conditions have already been captured through Implementation of RDE (Real Driving Emissions) boundary conditions and its limits as part of Bharat Stage 6.2,' Mahindra said in its letter to the Ministry. The government is examining the merits of the automaker's claims, an official aware of the exercise said. Auto industry experts said that given Mahindra has a high diesel mix in its portfolio, it could pose a challenge for the company to comply with stricter norms since that would need after-treatment technologies to reduce emission of pollutants. Diesel engines account for more than 70 per cent of Mahindra's SUV sales. They said that Mahindra's pitch is to essentially delay the implementation of the third phase of the BS VI norms, given that the manufacturer has the highest exposure to diesel engines and could face the most amount of compliance burden when the WLTP norms are officially implemented. In response to a query, a Mahindra spokesperson said, 'We wish to not comment on the story.' The Ministry did not respond to a request for comment. BS VI phase two rules, which have been in place since April 2023, introduced the RDE test, which, unlike MIDC or WLTP, measures on-road emissions. The purpose of WLTP is to calculate a more accurate conformity factor vis-a-vis the RDE test. In other words, it aims to narrow down the convergence between laboratory and on-road emissions. BS VI norms were introduced in 2020, followed by the second phase with the introduction of the RDE test in 2023. From 2027, India is proposing to introduce the WLTP test cycle as part of the third phase of BS VI norms. Experts said that Mahindra's argument to seek a delay of WLTP norms hinges on the fact that under BS VI phase 2, real world emissions are already being captured. However, they also said that phase 2 has a much more relaxed RDE, with a conformity factor of 1.43, whereas under phase 3, the planned RDE has a conformity factor of 1. They said both CAFE and BS 6 phase 3 have been known for a long time to kick in from 2027, and many manufacturers have prepared for it. In its letter to the MoRTH, Mahindra said it expected that during migration to WLTP, there would be clarity on CAFE III norms as well, with an adequate development time to ensure compliance. 'This coherence is presently not established,' Mahindra said, adding: '…a standalone migration to WLTP be avoided, and its implementation be clubbed at a later point after clear definition of CAFE III on WLTP'. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More Soumyarendra Barik is Special Correspondent with The Indian Express and reports on the intersection of technology, policy and society. With over five years of newsroom experience, he has reported on issues of gig workers' rights, privacy, India's prevalent digital divide and a range of other policy interventions that impact big tech companies. He once also tailed a food delivery worker for over 12 hours to quantify the amount of money they make, and the pain they go through while doing so. In his free time, he likes to nerd about watches, Formula 1 and football. ... Read More
Hindustan Times
9 hours ago
- Hindustan Times
Why India must drive the future with EVs
India is the world's third-largest automobile market, contributing nearly 7% to GDP and supporting millions of livelihoods. But the sector stands at a pivotal inflection point. A global technological transformation is rapidly shifting the auto industry away from internal combustion engines (ICE) towards the final frontier of innovation — electrification. And this transition is accelerating faster than many expected. Globally, the shift to electric vehicles (EVs) is undeniable. According to the International Energy Agency's Global EV Outlook 2025, over 50% of new cars sold in China last year were electric. Europe has surpassed 20%, and the US has reached 10%. This is no longer a niche trend: It is the new industrial reality. The reasons are clear: the need to meet climate targets, improve air quality, and foster green industrial growth. With zero tailpipe emissions and nearly three times the efficiency of ICE vehicles, EVs are central to this transformation. To its credit, India has taken important steps. Over the past decade, the government of India has invested more than ₹75,000 crore in EV-supportive policies through initiatives such as FAME, PLI, PM E-Bus Sewa, and the recently launched ₹10,900 crore PM E-DRIVE scheme. State governments have also introduced incentives and EV-friendly policies, reinforcing the national vision. These efforts are beginning to show results. In 2024–25, EVs accounted for 6.1% of two-wheeler sales, 23.4% of three-wheelers, 2% of passenger cars, and 5.3% of buses — an overall market penetration of 7.5%. While encouraging, this is still far from sufficient. To meet climate goals, reduce oil imports, improve air quality, and remain globally competitive, India must dramatically accelerate this transition. Indian manufacturers such as Tata, Mahindra, Ather, and Bajaj are rising to the challenge, investing in EV platforms, battery production, and critical components. However, some automakers continue to resist the shift and instead focus on interim technologies like hybrids — an unnecessary distraction India cannot afford. Conventional hybrid vehicles — misleadingly marketed in India as strong hybrids — use small batteries (often under 2 kWh) that are either charged by the petrol engine or through regenerative braking to assist it. This is less than the battery capacity of many electric scooters. In contrast, modern EVs typically use batteries over 50 kWh. Moreover, hybrids are not clean vehicles. They still burn fossil fuels, emit pollutants, and offer only modest efficiency gains of 15–20%, which diminish over time due to engine wear and rising emissions. EVs, on the other hand, are significantly more energy-efficient, have lower running costs, and become cleaner as India's electricity grid increasingly relies on renewable energy. They reduce oil dependence, enhance energy security, and support a robust, job-rich value chain encompassing battery manufacturing, charging infrastructure, digital services, and recycling. Therefore, it's time for India to leapfrog directly to transport electrification — just as it jumped from landlines to mobile phones, bypassing pagers. The recent restriction on rare earth element (REE) exports by China has highlighted global vulnerabilities. These elements are essential for batteries. While China may not dominate raw production, it controls the global processing of lithium (65%), cobalt (70%), and graphite (90%). This presents an opportunity for India. The only way India can claim a significant share of the global clean mobility value chain is by making a decisive push toward full vehicle electrification. India must act now to ensure that the EV transition proceeds at the speed and scale required. Four key policy actions can drive this momentum. Strengthen CAFE standards: Corporate Average Fuel Efficiency (CAFE) norms are powerful tools to push automakers towards cleaner technologies. The Bureau of Energy Efficiency (BEE) must finalise updated standards that eliminate super-credits for hybrids and other non-zero-emission vehicles. Only true zero-emission vehicles — EVs — should qualify for incentives. A biannual review mechanism should ensure these standards evolve in line with technology and international best practices. Mandate ZEV sales in Delhi NCR: Delhi NCR, grappling with severe air pollution, must lead by example. A Zero-Emission Vehicle (ZEV) mandate requiring manufacturers to sell a minimum share of EVs — eventually phasing out ICE vehicles within a decade — can accelerate adoption. This approach has succeeded in California and China. It's time India replicates it in its most polluted urban centres. Enable credit trading among OEMs: A dynamic credit trading system among manufacturers can reward early movers and hold laggards accountable. Companies exceeding EV targets should be able to sell credits to those falling short, creating a performance-driven, market-based system that encourages innovation and long-term EV investments. Strengthen the charging infrastructure network: India must address both private and public charging needs. Data from the US and Indian EV manufacturers show that over 85%–90% of charging happens at home. Enabling access to charging in residential parking is thus crucial. India should adopt a right-to-charge policy, similar to Norway, ensuring that EV owners have guaranteed access to charging facilities. In parallel, all national highways and expressways must be electrified to support long-distance travel. EVs are a 50-million-jobs opportunity. This transition is not just about reducing emissions — it represents a once-in-a-generation economic opportunity. The EV ecosystem could generate over 50 million jobs by 2030 across sectors such as battery technology, research and development, software, maintenance, and services. If India leads now, it can become a global hub for clean mobility. Consumers will benefit too. As production scales and costs fall, EVs will become more affordable. Combined with India's growing renewable energy capacity, EVs will become cheaper to operate — especially when paired with smart charging and domestic battery manufacturing. It is time for India to fully commit to an electric future. Amitabh Kant is former CEO, Niti Aayog and served as India's G20 Sherpa. The views expressed are personal.
