World EV Day: How India Became One Of World's Fastest Growing Electric Vehicle Market

India is one of the fastest-growing electric vehicle markets in India; here we explain the factors that contributed to the surge in the sales of these vehicles.

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The world is grappling with the challenge of addressing the harmful effects of climate change. In response to the widespread consequences of these changes, the world is turning towards sustainable transportation and environment-friendly energy sources, such as electric vehicles. India is actively participating in this endeavor by boosting the adoption of EVs, making it one of the fastest-growing electric vehicle markets in the world, as part of its contribution towards this collective goal. 

EV Adoption

Electric vehicle sales in India have seen steady growth, credits to the benefits like cost-efficiency and lower carbon footprint associated with it. Two-wheelers and three-wheeler electric vehicles have taken the lead to drive this growth while the EV segment saw sales of over 1 lakh units every month in the first half of 2023. Three-wheelers made up a sizeable 36 percent of the category, while two-wheelers made up 58 percent of the market for electric vehicles. Furthermore, reports suggest over half of India's three-wheelers sold in 2022 were electric.

Government Support

Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) has been the government's major instrument towards promoting electric vehicles in India. The first phase of the scheme started in 2015 and finished on 31st March 2019. Following this, FAME-II was implemented with a budget of Rs 10,000 crore. Along with this, different state governments provided benefits for the purchase of electric vehicles including registration fees and road tax exemptions.

Affordable Charging

The development of charging infrastructure is crucial to support the surging electric vehicle numbers in India. The Indian government has worked closely with private entities to develop this network. Furthermore, there have been efforts to develop EV-friendly highways with the Delhi-Chandigarh highway being the first of many. 

As a result of these infrastructural developments, India has become the third most affordable country in the world to charge an EV. Research by an Australia-based organisation shows that Argentina, Malaysia, and India are for charging EVs. Meanwhile, Denmark, Italy, and Germany are among the most expensive countries.