EV Penetration Slows, India Faces Challenge to Hit 2030 Target
ECONOMY & POLICY

EV Penetration Slows, India Faces Challenge to Hit 2030 Target

India’s electric vehicle (EV) adoption has grown at an annual rate of approximately 200 basis points (bps) between FY21 and FY24, but this growth rate needs to increase to 380 bps per year to meet the national target of 30% EV adoption by 2030, according to a report by FICCI-YES BANK. The report, titled “Driving ZEV Transition – From Center to State,” emphasizes that the current pace of growth is insufficient to achieve the ambitious EV30@30 target and calls for more aggressive policy interventions at both state and central levels.

While EV adoption is gaining momentum, with states like Delhi (11.5%), Kerala (11.1%), and Assam (10%) leading the charge, the report notes that five states accounted for over 50% of EV sales in FY24, revealing regional disparities. States such as Gujarat, Odisha, Kerala, and Punjab showed the highest compound annual growth rates (CAGR) between FY21 and FY24, underscoring these disparities.

The report also highlights that many state EV policies are nearing their expiration, which could undermine investor confidence and policy continuity. It calls for an urgent review and renewal of these policies until 2030 to provide a stable framework for the EV ecosystem and align the efforts of states and the central government toward achieving decarbonization goals.

To accelerate EV adoption, the report recommends integrating EVs into public transport systems, such as state-run buses and government fleet operations, including waste management fleets. It also stresses the need for continued fiscal incentives like road tax exemptions to encourage consumer adoption.

On the supply side, the report urges greater localization of EV manufacturing, including assembly processes and value chain development, to reduce reliance on imports. It also calls for investments in research and development, workforce skilling, and sustainability measures to build a robust EV ecosystem. Infrastructure is flagged as a critical area, with a phased approach to deploying EV charging stations in Tier-2 cities, rural areas, and along highways. The report emphasizes the importance of real-time monitoring and maintenance of charging stations to ensure their reliability and build consumer confidence.

The transport sector, which is a major contributor to India’s emissions, is central to the country’s net-zero commitment by 2070. While central policies provide a strong foundation, the report stresses the need for states to align their strategies with national goals. It recommends establishing dedicated EV coordination agencies at the state level to ensure effective implementation and regular progress reviews.The report concludes that achieving India’s EV targets requires a collaborative effort between the central government and states, with a focus on policy, infrastructure, and awareness-building to ensure a successful transition to zero-emission vehicles.

India’s electric vehicle (EV) adoption has grown at an annual rate of approximately 200 basis points (bps) between FY21 and FY24, but this growth rate needs to increase to 380 bps per year to meet the national target of 30% EV adoption by 2030, according to a report by FICCI-YES BANK. The report, titled “Driving ZEV Transition – From Center to State,” emphasizes that the current pace of growth is insufficient to achieve the ambitious EV30@30 target and calls for more aggressive policy interventions at both state and central levels. While EV adoption is gaining momentum, with states like Delhi (11.5%), Kerala (11.1%), and Assam (10%) leading the charge, the report notes that five states accounted for over 50% of EV sales in FY24, revealing regional disparities. States such as Gujarat, Odisha, Kerala, and Punjab showed the highest compound annual growth rates (CAGR) between FY21 and FY24, underscoring these disparities. The report also highlights that many state EV policies are nearing their expiration, which could undermine investor confidence and policy continuity. It calls for an urgent review and renewal of these policies until 2030 to provide a stable framework for the EV ecosystem and align the efforts of states and the central government toward achieving decarbonization goals. To accelerate EV adoption, the report recommends integrating EVs into public transport systems, such as state-run buses and government fleet operations, including waste management fleets. It also stresses the need for continued fiscal incentives like road tax exemptions to encourage consumer adoption. On the supply side, the report urges greater localization of EV manufacturing, including assembly processes and value chain development, to reduce reliance on imports. It also calls for investments in research and development, workforce skilling, and sustainability measures to build a robust EV ecosystem. Infrastructure is flagged as a critical area, with a phased approach to deploying EV charging stations in Tier-2 cities, rural areas, and along highways. The report emphasizes the importance of real-time monitoring and maintenance of charging stations to ensure their reliability and build consumer confidence. The transport sector, which is a major contributor to India’s emissions, is central to the country’s net-zero commitment by 2070. While central policies provide a strong foundation, the report stresses the need for states to align their strategies with national goals. It recommends establishing dedicated EV coordination agencies at the state level to ensure effective implementation and regular progress reviews.The report concludes that achieving India’s EV targets requires a collaborative effort between the central government and states, with a focus on policy, infrastructure, and awareness-building to ensure a successful transition to zero-emission vehicles.

Next Story
Infrastructure Transport

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Next Story
Infrastructure Urban

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Next Story
Infrastructure Urban

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement