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India will need to lift electric vehicle (EV) adoption by more than 22 percentage points in the next five years to stay on track with its goal of 30 per cent EV penetration by 2030, according to a new report by NITI Aayog.
The report flagged that EVs accounted for only 7.6 per cent of total vehicle sales in 2024, a modest increase achieved over nearly a decade. Despite policy support, the country remains far behind its target.
India has seen EV sales rise from 50,000 units in 2016 to 2.08 million units in 2024, with significant progress in electric two- and three-wheelers and growing adoption of electric buses. However, the penetration of electric cars has remained sluggish, while long-haul electric trucks have yet to gain traction.
The report identified financing barriers, especially for electric buses and trucks, inadequate data, and regulatory gaps as key hurdles. It suggested that India gradually move from incentives to mandates and disincentives, focusing on segments and regions where the transition is easier and benefits are higher.
Creating “saturation” in specific geographies, the report said, could generate visible impact and drive replication nationwide, helping India catch up with global EV leaders like China, the US, and the EU.
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