NITI Aayog Report: India Must Boost EV Sales to Meet 2030 Target

According to the latest NITI Aayog report, India must accelerate electric vehicle (EV) adoption if it hopes to meet the government’s target of 30% EV penetration by 2030.

While EV adoption in India has made progress in the past decade, the country still lags behind global peers. The report estimates that India will need to increase EV sales by over 22% within the next five years to stay on track.

Current State of EVs in India

• In 2024, EVs accounted for just 7.6% of total vehicle sales.
• It took almost 10 years to reach this figure.
• EV sales grew from 50,000 units in 2016 to 2.08 million units in 2024.
• Two-wheelers and buses show stronger adoption compared to passenger cars.
• Electric trucks remain limited, with only a few models launched.

This slow pace indicates that India is still far from its 2030 clean mobility vision.

Global Comparison

• India lags behind leading EV markets like the US, European Union, and China.
• These regions have higher penetration rates due to:
  • Stronger policy mandates
  • Better charging infrastructure
  • Faster adoption of new technologies

Key Challenges Identified by NITI Aayog

The report outlines several barriers slowing India’s EV adoption:

• High costs of EVs, especially buses and trucks
• Regulatory gaps that create uncertainty
• Lack of reliable data for policy and planning
• Poor charging infrastructure in many regions
• Limited ecosystem readiness outside of urban centers

Recommendations to Accelerate EV Adoption

NITI Aayog suggests a multi-pronged strategy to boost EV growth:

• Policy push: Stronger mandates and incentives to replace subsidies as the main driver
• Segment focus: Prioritize electric buses, two-wheelers, and commercial fleets
• Geographic approach: Develop city- or region-specific EV ecosystems before nationwide rollout
• Financial models: Provide affordable loans, leasing, and rental solutions for EV buyers and fleet operators
• Data transparency: Improve rules and reporting to enable evidence-based decisions

India’s 2030 EV Goals

• Achieve 30% EV penetration in total vehicle sales
• Expand charging infrastructure in line with EV fleet growth
• Reduce dependence on fossil fuels in transportation
• Cut carbon emissions from the auto sector
• Position India as a global leader in sustainable mobility

Conclusion

The NITI Aayog report makes it clear: subsidies alone won’t be enough to drive EV growth in India. Instead, a mix of policy mandates, financial solutions, ecosystem development, and region-specific strategies is needed.

With EVs at just 7.6% of sales in 2024, India must increase adoption by over 22% in the next five years to stay on track for 2030. If successful, this transition will not only transform India’s auto industry but also help reduce oil imports, cut emissions, and strengthen India’s clean energy leadership.