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A Study on Electric Vehicles in India: Opportunities & Challenges

A Study on Electric Vehicles in India: Opportunities & Challenges

Guided By, Ujjwal Sharma, Assistant Professor, Amity Business School

Prakhar Singh, A80306422168, BBA (VI Semester), Amity University, Chhattisgarh, India

Abstract

The Indian automobile industry is undergoing a paradigm shift with the increasing focus on Electric Vehicles (EVs). Driven by the dual objectives of reducing carbon emissions and minimizing dependence on fossil fuels, India is witnessing a growing interest in EVs among consumers, manufacturers, and policymakers. This study explores the current landscape of electric vehicles in India, focusing on the opportunities for growth, such as government support, technological advancement, and environmental benefits, as well as the challenges, including infrastructure limitations, high costs, and consumer skepticism. Using primary and secondary data sources, this research provides an analytical understanding of India's readiness for an EV revolution and offers strategic suggestions to accelerate adoption.

The 21st century has witnessed a transformative shift in the global transportation landscape, driven by the urgent need to mitigate environmental degradation, reduce dependency on fossil fuels, and adopt sustainable technologies. Among the most promising innovations in this domain is the development and adoption of Electric Vehicles (EVs). These vehicles offer a cleaner and greener alternative to conventional internal combustion engine (ICE) vehicles by significantly reducing greenhouse gas emissions, air pollution, and noise levels. In the context of India, one of the fastest-growing economies with a population exceeding 1.4 billion, the transition to electric mobility presents both immense opportunities and significant challenges.

India’s transportation sector is currently a major contributor to greenhouse gas emissions and urban air pollution. With increasing urbanization and motorization, the demand for personal and commercial vehicles is rising rapidly, exacerbating environmental concerns. At the same time, India imports more than 80% of its crude oil requirements, leading to substantial economic burden and energy insecurity. In this scenario, Electric Vehicles have emerged as a strategic solution, aligning with India’s commitments under the Paris Agreement and its broader goal of achieving net-zero carbon emissions by 2070.

The Indian government has been proactive in promoting EV adoption through initiatives like the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, offering incentives, subsidies, and tax benefits to consumers and manufacturers alike. State governments have also introduced EV policies aimed at encouraging local manufacturing, creating charging infrastructure, and increasing public awareness. Moreover, the falling costs of lithium-ion batteries, technological advancements, and the rising popularity of shared mobility platforms are further strengthening the EV ecosystem.

Despite these favorable developments, India’s EV market is still at a nascent stage, accounting for only a small fraction of the overall automobile sales. The path to widespread EV adoption is hindered by several critical challenges, such as inadequate charging infrastructure, high initial costs, limited driving range, battery performance concerns, and lack of consumer awareness. These factors have created a gap between policy ambitions and actual ground-level adoption, especially in rural and semi-urban areas.

This study aims to critically examine the opportunities and challenges associated with the adoption of electric vehicles in India. It explores the current status of the EV industry, government policies, market trends, consumer perception, technological barriers, and the socio-economic implications of a shift toward electric mobility. By analyzing both primary data from stakeholders and secondary sources including industry reports and academic studies, this research endeavors to provide a holistic understanding of the electric vehicle landscape in India.

The findings of this study will be valuable for policymakers, automobile manufacturers, environmentalists, and consumers alike. It will not only shed light on the practical obstacles that need to be addressed but also offer strategic recommendations to accelerate the growth of electric vehicles in India. Ultimately, the transition to electric mobility is not merely a technological change—it represents a fundamental shift toward a more sustainable, energy- efficient, and environmentally responsible future.