NITI Aayog Flags India’s Slower Pace of EV Adoption

India wants to lead the global EV race. But its progress so far isn’t fast enough. That’s the message from NITI Aayog, the government’s policy think tank.

At a recent event, NITI Aayog raised concern over India’s current pace of electric vehicle adoption. The country is aiming for 30% EV penetration by 2030. But right now, it’s well below that.

“India's EV sales have recorded impressive growth from a modest 50,000 units in 2016 to about 2.18 million in 2024, which is about 20% CAGR growth. However, we also have to acknowledge the fact that the adoption of EVs in India is at a slower pace than not only China, but also the EU and the US. The global penetration is about 17% now, whereas we are at a little under 8%,” said Rajiv Gauba, Member of NITI Aayog.

Faster in Three-Wheelers, Slower Elsewhere

Electric vehicles are gaining ground in India. But the growth is not equal across all types.

In the three-wheeler segment, EVs have reached 20% market share. Electric buses have hit only 4.7%. Electric trucks barely exist—below 1%.

This gap matters. Larger vehicles produce more emissions. They also consume more fuel. That makes their electrification even more urgent.

Strategy Needs an Overhaul

India’s target is bold. But the current approach may not be enough to get there.

“So while we have done well so far, we have to revisit our strategy and our approach,” Gauba said. “We need a new approach, a new intervention, or a major step-up, so that we can reach the 30% target by 2030, which we have set for ourselves.”

NITI Aayog has listed several problems. Among them:

• Access to financing is challenging, particularly for trucks and buses.
• There are not enough charging stations, and many of the public ones are not used.
• There is a lack of public and private sector awareness regarding EVs.
• The data is not complete.
• Rules are not always consistent.
  

A Shift in Policy Direction

NITI Aayog wants a new strategy to address this. Its new approach abandons subsidies in favor of stricter laws.

Key proposals include:

• Introducing Zero Emission Vehicle (ZEV) mandates.
• Disincentivizing internal combustion engine (ICE) vehicles within a year.
• Fully electrifying public and freight transport in five cities, then expanding.
• Helping small fleet owners with blended finance, battery leasing, and priority sector lending.
  

This approach aims to create long-term market stability, reduce risk for manufacturers, and lower entry barriers for buyers.

Conclusion: Time to Speed Up

India has momentum, but only in parts of the EV market. The electric three-wheeler segment is pulling ahead. But without better uptake of electric buses, the bigger goal will stay out of reach.

For India to become a global EV hub, its domestic market must grow faster. NITI Aayog is clear: if India wants to lead, it can’t afford to lag.

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