India’s EV policies have built a growing market but now a wider transport transition is needed that improves air quality, reduces oil dependence and gives investors a clear long-term direction
Rising electric vehicle adoption, expanding charging infrastructure and national and state level policies are helping drive India’s electric mobility transition across two-wheelers, three-wheelers, passenger vehicles and buses. Government incentives, growing domestic manufacturing and increasing consumer acceptance have helped establish electric mobility as a key pillar of India’s clean energy ambitions.
However, the next phase must be about more than increasing EV sales. India needs a broader, integrated policy vision that connects transport electrification with the country’s wider developmental priorities. The urgency is underscored by geopolitical conflicts and disruptions along critical trade routes, which expose India’s dependence on imported oil and concentrated supply chains for batteries and critical minerals.
Electrification, therefore, offers a strategic response; reducing petroleum demand can limit exposure to volatile global markets, while domestic manufacturing, recycling and diversified mineral partnerships can gradually strengthen supply chain resilience. This argument is echoed by a recent research paper published by the Chintan Research Foundation, which points out that the next challenge for India is to “connect this progress with a wider transport transition that improves air quality, reduces oil dependence and gives investors a clear long-term direction.”
The research paper also proposes a National Clean Mobility Policy, supported by a National Clean Mobility Mission, to guide that transition. “It proposes three planning periods: 2026–2029, 2029–2035 and 2035–2047. Electric mobility is central, especially for smaller vehicles and urban fleets. Freight and alternative fuels require assessment of local operating costs, infrastructure, payload and lifecycle emissions. The September 2026 CAFE norms strengthen passenger-vehicle fuel efficiency, but these gains need to be supported by clearer long-term policy direction for India’s transition from clean to green mobility,” it said.
At the same time, the paper suggests “coordinated charging and grid investment, targeted risk sharing to attract private capital, segment-specific pathways and common national standards with flexibility for states.”
It also advocates for a wider transition plan for fuel efficiency, arguing that despite strengthening passenger vehicle efficiency, the 2026 CAFE-III norms, allows several ways to comply and does not prescribe an EV sales share. “India’s wider mobility framework should connect near-term efficiency gains with a clear green-mobility destination,” the paper adds. Similarly, it also recommends green mobility as a focus area, stressing that it can combine near-zero to zero tail pipe emissions with significantly lower lifecycle GHG emissions vis-a-vis clean mobility.
Fig 1: A car at an EV charging station. Pic credit: istock
Elaborating on the roadmap, the paper suggests designing the transition in three periods. 2026–2029 to build readiness, 2029–2035 to expand proven solutions and 2035–2047 to scale green mobility. Annual reporting and major reviews in 2029 and 2035 should keep the pathway aligned with Viksit Bharat 2047 and India’s longer-term net-zero goal,” it said.
Financing remains crucial to accelerating EV adoption in India, where high upfront costs and limited access to credit remain key barriers. Expanding credit access and reducing lending risks have been talked about as essential to scale adoption across vehicle segments.
The paper said based on certain estimates, tracked EV investment during 2020–2025 amounted to an estimated ₹2.23 lakh crore (US$25.6 billion), which is around 18% of estimated needs through 2030. “Attracting more capital will require reliable revenues, better operating data and clearer sharing of risks, alongside improved access to finance for underserved borrowers,” it points out.
At the same time, it recommends using “targeted guarantees, pooled projects, co-lending, leasing and concessional finance” to attract private capital.
“Assign responsibilities, establish common baselines and publish segment-specific objectives for 2029 and 2035. Give investors advance notice of changes, tighten eligibility as evidence improves and focus continuing public support on remaining infrastructure and inclusion gaps,” the research paper added.
India now must create a coordinated vision for the transport sector, which integrates vehicle electrification with air pollution mitigation, renewable energy, grid readiness, charging infrastructure, affordable financing and domestic manufacturing. Equally it must address supply chain vulnerabilities and reduce dependence on imported fuels. By aligning national and state priorities, designing such a policy can perhaps accelerate the transition faster.
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