With recent policy reforms intended to boost its growth, India’s electric vehicle (EV) sector is at a critical juncture. Industry executives have praised the Delhi government’s decision to bring back EV subsidies. In an exclusive interview with CNBC-TV18, Veejay Nakra, President of Automotive at Mahindra & Mahindra, praised the action, stating that “Electric vehicles are the destination technology for the country, and this policy will go a long way in helping enhance the EV penetration in Delhi.”
According to Nakra, the adoption of EVs in India is still in its infancy, having started in 2018. On the other hand, over 10 years of concentrated efforts have been made in international markets with higher EV penetration, which is frequently in the double digits. He emphasized the critical role of government programs like the Production Linked Incentive (PLI) program, investments in charging infrastructure, and FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) phases I, II, and III, which have been in place for the past five years.
According to Nakra, the small selection of electric vehicles on the market has an impact on India’s EV adoption, which is currently at around 2.5% in the passenger car segment. Many modern EVs are converted internal combustion engine (ICE) cars, which are typically 25–30% more expensive than their ICE counterparts. In order to pique public interest, he emphasized the significance of launching “born electric” vehicles that are particularly made to be EVs, like electric SUVs. In a significant move for the sector, he disclosed that 23 new electric SUVs are anticipated to be introduced in India by 2027.
What are India’s Electric Vehicle Giants Saying?
EY India Partner Som Kapoor emphasized that consumption is a major factor in EV adoption. He noted that high-usage vehicles like buses, three-wheelers, and two-wheelers should take precedence over passenger automobiles. These segments are frequently used for business applications, such as delivery and transportation, where longer vehicle usage periods guarantee a higher return on investment.
“The real turning point will occur between charging infrastructure, safety, and product availability,” stated Kapoor. Let it run for another 12 to 18 months to determine when you reach inflection.
Co-founder of Yulu Bikes RK Misra voiced his displeasure with India’s inconsistent electric vehicle laws. He praised FAME-I for its wider reach but criticized later stages, pointing out that fleet operators, who have a major positive impact on the environment and the economy, are frequently disregarded.
Commercial fleets that are used twelve hours a day, such as delivery trucks and taxis, offer more value than individual vehicles, which are usually used for just one hour each day, according to Misra. He also drew attention to the fact that many incentive programs do not include low-speed EVs, which are frequently utilized in delivery services.
Given Delhi’s high pollution levels, Misra questioned why the city’s EV policy had lapsed before being revived, highlighting the lack of clarity and long-term planning in EV regulations. He said that merely prolonging programs through March 2025 breeds doubt and erodes public trust. According to Yulu Bikes’ co-founder, “if the policy is there, it has to be meaningful and consistent, and that can only happen when you go for mass adoption.”
