Electric vehicles (EVs) are a technologically evolving industry that can help reduce fossil-fuel consumption and the associated import
dependency. EVs can also help India achieve its net-zero goals and improve the deteriorating urban air quality. In line with the global trends, EVs are gaining popularity among Indian consumers. Currently, EVs constitute 6% of the overall automobile market share, indicating a growing presence. Cumulatively, over the past few years, more than 2.5 million EVs are currently plying on Indian roads. This growth was predominantly fuelled by the electric two-wheeler (e-2W) segment.
The adoption of EVs across various Indian states exhibits a diverse landscape influenced by regional (state-specific) policies, infrastructure, and consumer preferences. This divergence in EV registrations across vehicular segments underscores the importance of tailored strategies at both state and national levels to accelerate the transition towards a greener and more resilient transportation ecosystem in India. A closer examination at the city-level EV penetration reveals a significant growth in EV sales during FY 2023, compared with previous years, with New Delhi (National Capital Region) leading the way. Other major cities such as Patna, Ahmedabad, and Mumbai have also shown promising
uptake.
More than 3,300 face-to-face interviews were conducted across four cities (Surat, Pune, Kolkata, and Coimbatore) to capture the public
perception about EVs and assess the usage patterns of existing EV owners. Overall, a positive response towards EVs was recorded across the four cities, and more than 55% users were willing to buy an EV instead of an ICE vehicle in the next 5 years. Among socio-economic
factors, type of employment and household income had a greater influence on EV purchase decision than education and gender. Awareness about subsidies and tax relaxations for EVs and knowledge about the benefits of EVs were the key factors influencing users to opt for EVs.
The technical note was co-authored by Aparna KP and Aniket Wakhare.