Home » Electric Vehicles Driving Sustainable Mobility in India

Electric Vehicles Driving Sustainable Mobility in India


Sustainable mobility, particularly electric mobility, plays a pivotal role in the economic development of nations and contributes to improving the lives of people across both rural and urban areas. In India, the push for sustainable mobility is not just about reducing carbon emissions but also about fostering accessible, inclusive, and safe transportation solutions to enhance the overall quality of life and meet climate goals.

India’s Commitment to Sustainable Mobility

As countries globally strive to reduce their carbon footprint and combat climate change, sustainable transportation has emerged as a critical priority. Given India’s burgeoning population and rapid urbanization, the country’s approach to sustainable mobility holds immense significance, not only for its citizens but also for the global environment, considering India’s status as one of the world’s largest and fastest-growing economies.

The automobile industry is a significant contributor to India’s economy, accounting for 7.1% of its GDP and 49% of its manufacturing GDP. Recognizing the need for transformation, the Indian government outlined its strategy in the 2nd Automotive Mission Plan (AMP) to elevate the automotive industry to a world-class level.

Transitioning Towards Electric Mobility

India pledged to reduce its gross domestic product’s emission intensity by 33% to 35% above 2005 levels by 2030 as part of the Paris Agreement. To fulfill this commitment and address the adverse effects of traditional automobiles, India is aggressively transitioning towards a transportation model that promotes alternative fuel vehicles and electric vehicles (EVs) to achieve zero or low carbon emissions.

The EV market in India is poised for significant growth, with an expected Compound Annual Growth Rate (CAGR) of 49% between 2022-2030, aiming for 10 million annual sales by 2030. This growth trajectory is anticipated to create 50 million direct and indirect jobs by 2030, with a projected market size of US$ 50 billion for EV financing by 2030.

Economic and Environmental Benefits of Electric Vehicles

The economics of EVs are steadily improving, driven by declining battery costs and a range of financial and non-financial incentives such as subsidies and registration advantages. The shift towards electric mobility not only reduces greenhouse gas emissions but also mitigates air pollution, addressing the health hazards associated with traditional fossil fuel-powered vehicles.

Government Initiatives and Policy Support

The Indian government has implemented various policy initiatives and incentives to promote the adoption of electric vehicles. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, launched in 2015 and subsequently expanded, offers subsidies and incentives to manufacturers, purchasers, and infrastructure developers.

Lowering the Goods and Services Tax (GST) on EVs further reduces the cost barrier, encouraging both domestic and foreign automakers to invest in the Indian EV sector and facilitating consumer adoption.

Challenges and Opportunities Ahead

While India’s transition to electric mobility presents significant opportunities, several challenges must be addressed. These include the need for infrastructure development, affordability of EVs across income segments, range anxiety among consumers, and environmental concerns related to battery recycling and disposal.

Building a Robust Charging Infrastructure

The establishment of a reliable charging infrastructure is crucial for promoting electric vehicles. The Indian government has undertaken initiatives to accelerate the deployment of charging stations nationwide, encompassing both fast chargers along highways and slower chargers in urban areas.


India’s journey towards sustainable mobility with electric vehicles represents a significant paradigm shift in the transportation sector. While challenges remain, concerted efforts by the government and industry stakeholders are driving the transition towards a cleaner, greener future. With continued investments, policy support, and technological advancements, electric vehicles are poised to play a pivotal role in shaping India’s mobility landscape and contributing to global environmental sustainability efforts.

Source: IBEF Edited.

About the author

Mayank Sharma

Add Comment

Click here to post a comment