According to a report released Thursday, India’s transition to electric mobility is increasing, with 1.2 million EV sales and 5% market penetration in FY24. It also stated that collaborations among stakeholders can be fostered with the right policy support and quicker decision-making.
According to India’s COP26 pledge to switch to entirely zero-emission vehicles by 2040, EVs are becoming a game-changing and alternative answer.
In order to accelerate EV adoption in India’s $5 trillion economy, policy and infrastructure are primarily important, according to the KPMG in India-CII report.
“A new era of innovation, economic expansion, and environmental responsibility is starting for India with the electric vehicle revolution. “This is a systemic transformation of infrastructure, finance, technology, and mindset;it’s not just a move to zero-emission transportation,” stated Raghavan Vishwanathan, Partner-Automotive at KPMG in India.
“By addressing infrastructure gaps, creating affordable pathways for consumers, and building societal trust in EVs, India can set a global benchmark for sustainable mobility, green growth, and inclusive prosperity,” he said.
Four fundamental pillars are stated in the report as being necessary to accelerate the adoption of EVs: social infrastructure (raising stakeholder awareness and promoting education), power infrastructure (managing demand and integrating renewable energy), and economic infrastructure (ensuring affordable financing and optimized taxation), and physical infrastructure (expanding charging networks and improving battery recycling).
With more than 1,000 charging stations, the high EV adoption in areas like Karnataka, Maharashtra, Delhi, and Kerala highlights the value of infrastructure. Demand incentives are four times less effective than infrastructure focus, according to the World Bank.
The rise is being aided by a number of factors, including start-up ecosystem, technological access, total cost of ownership parity, and legislative support. Additionally, as part of the EV30@30 campaign, India has set the lofty goal of 30% penetration by 2030.
“Right policy support and faster decision-making can help in building collaborations across stakeholders in the EV ecosystem including government bodies, private enterprises, and international partners which shall drive innovation and investment, requisite for development of infrastructure that keeps pace with the growing demand for EVs,” the report states.
