India needs 22 pc jump in EV sales over 5 yrs to hit 2030 target: NITI Aayog report

NEW DELHI: India will need to increase electric vehicle (EV) adoption by more than 22 per cent over the next five years to meet the government’s goal of 30 per cent EV penetration by 2030, a new report by NITI Aayog has said.

The report noted that despite policy support and growing awareness, EVs made up only about 7.6 per cent of total vehicle sales in 2024. It added that this progress has been slow, as it has taken nearly a decade to reach this level.

The report said, “country has progressed to only about 7.6 per cent of the sales in 2024 being electric far behind its target of 30 per cent by 2030…now it needs to increase this share by over 22 per cent in the next 5 years alone.”

According to the report, India seeks to ensure that 30 per cent of the total vehicles sold in the country by 2030 are electric. The sales of EVs in India have increased significantly in recent years, rising from 50,000 units in 2016 to 2.08 million units in 2024.

The adoption of EVs in India has been improving but continues to lag behind some of the leading countries, such as the US, the European Union and China. The report observed that India has performed relatively better in segments such as electric two-wheelers and electric three-wheelers. Progress has also been made with electric buses.

However, the pace of adoption for electric cars has remained slow, and long-haul electric trucks have virtually not taken off. The report highlighted that this situation calls for stronger measures to give a further push to the EV transition.

It noted that several consultation meetings were held which identified challenges such as financing hurdles for vehicles, especially electric buses and trucks, and inadequate data along with regulatory gaps that hinder evidence-based decision-making.

Based on the consultations and the unique features of the Indian context, the report suggested a set of approaches to accelerate the transition. These include moving gradually from incentives to mandates and disincentives, as incentives alone have already delivered much of their intended impact. Stronger regulatory signals, it said, are now needed for the next stage of growth.

Another recommendation is to focus on specific subsets of the vehicle fleet where the benefits of transition are greater and where the supporting ecosystem can be developed more easily. The report also proposed concentrating efforts on achieving saturation in limited geographies rather than spreading efforts thinly across the country. Such saturation, it said, can create visible impact and attract replication in other regions. (ANI)