EVs Powering Progress: A $100 Billion Opportunity

India is at the cusp of a major transformation in mobility. With 2 million electric vehicles (EVs) sold in the past year, the country is aiming for an ambitious tenfold growth—to 20 million EVs by 2035. “India’s EV transition is not just about clean mobility—it’s about creating economic and social inclusion at scale,” says Mahesh Babu, Global CEO of Switch Mobility, underscoring the deeper impact of this shift. This journey isn’t just about numbers—it’s about reshaping infrastructure, fostering innovation, and building an inclusive ecosystem that supports economic, environmental, and social progress.

The Road Traveled: From Skepticism to 2 Million EVs

The real push in India’s EV journey began around FY2015, when the transition from combustion engines to electric vehicles began gaining ground. The first million EV sales took almost nine years—a period filled with skepticism, questions around technology, battery performance, and a lack of charging infrastructure. But despite these hurdles, vehicles sold during those early years are still running efficiently today.

The second million came in just two years, reflecting a pivotal shift. This momentum was driven by a collective effort: government incentives, industry investments, and increasing consumer awareness. India, often cautious about new technologies, embraced EVs once the economic benefits became evident.

Why EVs Matter to India

India’s fast-growing economy demands a parallel growth in mobility. However, unlike the West, India’s per capita vehicle ownership remains low. The country has made a conscious decision to pursue sustainable growth, reflected in its climate pledge to achieve net-zero emissions by 2070. With over $1 trillion being invested in renewable energy and a strong focus on solar power, electrification of mobility is the natural next step.

To reduce dependence on imported fossil fuels—which make up 85% of India’s energy needs—electrifying mobility is not a choice, but a necessity.

Targeting 30% Electrification by 2030

The government has nudged the industry towards a target: 30% of new vehicles to be electric by 2030. While some sectors doubted its feasibility, three-wheelers have already crossed 50% electrification, showcasing that when product economics work, adoption follows naturally.

One such success story is the Mahindra Treo, India’s first lithium-ion battery-powered three-wheeler. Designed for bottom-of-the-pyramid users, it enabled drivers—especially women—to earn up to ₹6,000 more per month than diesel counterparts. This shows how EVs can empower people, transform lives, and build livelihoods.

Sector-Wise Snapshot:

Two-Wheelers: High volumes but just 6% penetration—massive growth potential.

Three-Wheelers: Low volumes but over 50% electrification—true disruptor.

Commercial Vehicles: Especially buses, driven by state transport initiatives.

Cars: Limited adoption due to cost and usage patterns, but growing in shared mobility.

Challenges & Opportunities on the Road to 20 Million

The road to 20 million EVs is not without challenges. But each challenge is also a business opportunity:

Product Innovation: India must move beyond “Make in India” to “Innovate in India.” The industry needs EVs designed for Indian conditions—affordable, durable, and efficient.

Technology Integration: While India is not yet a technological leader in EVs, it is a software powerhouse. Leveraging software in EV platforms can turn India into a global EV innovation hub.

Total Cost of Ownership (TCO): EVs must deliver clear economic value to users. For Indian buyers, affordability is key—products must demonstrate monthly savings over fossil-fueled alternatives.

Manufacturing: Strengthening local supply chains is critical to reduce geopolitical risks and build resilience. India must invest deeply in EV manufacturing and component localization.

Charging Infrastructure: While EV ranges are improving (up to 500 km), public charging networks remain insufficient. India needs around 150,000 charging stations by 2030. A public-private model is essential to make this viable, especially considering high real estate costs.

Upskilling the Workforce: EVs aren’t just a technological shift—they require a cultural and skills shift. Upskilling needs to happen at all levels—from factory workers to CEOs—with structured industry-academia-government collaboration.

Stakeholder Engagement: The EV movement must involve everyone: regulators, manufacturers, financiers, and consumers. Multi-modal and shared mobility will play a vital role in reducing congestion and emissions.

The Role of Data, AI & Telematics

With connected vehicles and AI-driven analytics, businesses now have unprecedented visibility and control. From real-time vehicle tracking to predictive maintenance, digital transformation is redefining fleet operations. India's strength in IT offers a natural edge to leapfrog into the future of smart mobility.

Policy Support and Industry Confidence

Both central and state governments have played a proactive role—through PLI schemes, tax incentives, and EV-friendly policies. Earlier, industries were hesitant, waiting for clarity. Today, there's a consensus that India will need every form of mobility: EV, CNG, hydrogen, LNG. EVs are no longer a question of “if,” but “how fast.”

Aiming for Global Leadership

By 2030, India is expected to surpass 10 million EVs. The vision is to reach 20 million by 2035. But the mission doesn't stop there. India has the potential to be an export hub for EVs, leveraging its scale, software prowess, and cost-efficiency.

Rather than chasing the top spot globally, India should aim for sustainable leadership—targeting the #2 position in global EV mobility by accounting for all modes of electric mobility, not just cars.

Conclusion:

The transition from 2 to 20 million EVs isn’t just a policy target—it’s a $100 billion opportunity. It promises cleaner cities, economic empowerment, reduced fossil fuel dependence, and a thriving innovation ecosystem.

The way forward requires collective action—industry, academia, startups, government, and most importantly, consumers. India doesn’t just have the need to lead in EVs—it has the opportunity and the capability.