Mumbai, Dec 13: India is making remarkable strides in electric mobility, with EV sales crossing 1.2 million and achieving a 5% market penetration in FY24. According to a joint report by KPMG in India and CII, the country has the potential to set a global benchmark for sustainable mobility with the right policy framework and faster decision-making. Aligned with its COP26 commitment to transition to 100% zero-emission vehicles by 2040, India’s EV journey is a critical step toward environmental stewardship and economic growth.
The report emphasizes that the EV revolution in India represents more than a shift to zero-emission transportation. It signifies a systemic transformation involving infrastructure development, innovative financing, advanced technology, and a societal shift in mindset. Raghavan Vishwanathan, Partner-Automotive at KPMG India, said, “By addressing infrastructure gaps, creating affordable pathways for consumers, and building societal trust in EVs, India can set a global benchmark for sustainable mobility, green growth, and inclusive prosperity.”
To accelerate EV adoption, the report identifies four key pillars: physical, power, economic, and social infrastructure. Expanding charging networks and improving battery recycling form the backbone of physical infrastructure, while integrating renewable energy and managing demand are vital for power infrastructure. Economic infrastructure focuses on affordable financing and tax optimization, and social infrastructure calls for greater awareness and education to promote EVs among stakeholders.
High EV penetration in states like Karnataka, Maharashtra, Delhi, and Kerala—each with over 1,000 charging stations—underscores the importance of infrastructure. The World Bank has highlighted that focusing on infrastructure is four times more effective than demand-based incentives for boosting adoption rates.
India’s ambitious EV30@30 campaign, which aims for 30% EV penetration by 2030, is a pivotal step toward meeting its sustainability goals. Factors such as favorable policy support, the emergence of a vibrant startup ecosystem, and advancements in technology are key drivers of this growth. Collaborative efforts among government bodies, private enterprises, and international partners are essential to fostering innovation and investments necessary for infrastructure development that matches the growing demand for EVs.