Electric vehicles are transforming transportation in India, offering a cost-effective and environmentally friendly alternative to traditional fuel-powered vehicles. With India ranking as the third-largest emitter of carbon dioxide globally, the shift toward cleaner transportation is crucial. According to the International Energy Agency (IEA), the rollout of electric vehicles is set to avoid the need for nearly 6 million barrels of oil per day by 2030. The electric vehicle industry in India experienced an 80% increase in sales between 2010 and 2023, reflecting the growing adoption. Most freight transportation relies on diesel-powered trucks, making electrification a key strategy to reduce carbon emissions while lowering fuel expenses for millions.

Government and Public Adoption of Electric Vehicles

The use of electric vehicles in India continues to rise, with reports showing that more than 2 million electric vehicles were in use by 2023. A primary reason for this increase is the rising cost of petrol. In April 2020, petrol prices in Indian cities averaged 70 rupees per liter, reaching nearly 110 rupees per liter at their peak in 2022. As fuel prices continue to fluctuate, many citizens are turning to electric vehicles to save money on transportation costs. In an interview with AP News, an electric rickshaw driver highlighted the financial benefits of the switch. He reported that charging his electric rickshaw costs 60 rupees, compared to 300 rupees for petrol to cover the same 80-kilometer distance. Given these cost savings, many others are making the transition to electric vehicles.

Supportive Policies for Electric Vehicle Adoption

The Indian government has introduced financial incentives and policies to accelerate the adoption of electric vehicles. In September 2024, officials approved a 109 billion rupee ($1.3 billion) incentive package to promote the use of two- and three-wheeled electric vehicles, as well as electric trucks and ambulances. Reducing pollution from diesel-powered trucks remains a primary focus of this policy, as they are among the largest contributors to poor air quality in India. To address this, the government has introduced additional incentives for scrapping old diesel trucks in favor of electric alternatives. By 2030, India aims to have 70% of its commercial vehicles running on electricity, significantly reducing emissions while making transportation more affordable for businesses and individuals.

Charitable Initiatives and Market Growth Projections

The shift to electric vehicles has created opportunities for low-income communities. The Shishu Mandir charity has been donating electric vehicles to individuals in need, allowing them to establish sustainable livelihoods through ride-hailing services. A transgender woman who had previously relied on street begging for survival after being disowned by her family received an electric vehicle donation from Shishu Mandir. The initiative provided her with a safer and more stable income while also contributing to environmental sustainability.

While Shishu Mandir has donated 17 electric vehicles so far, efforts are ongoing to expand the program, providing licenses and driving lessons to those in poverty. These initiatives demonstrate how electric vehicle adoption serves as both a climate solution and a tool for economic empowerment.

Organizations such as the India Brand Equity Foundation (IBEF) are also playing a pivotal role in expanding India’s electric vehicle market. Through investments, policy support and government lobbying, IBEF estimates that India could become the largest electric vehicle market in the world by 2030. The organization advocates for subsidies, improved charging infrastructure and lower production costs to make electric vehicles more accessible.

Looking Ahead

India’s transportation sector is undergoing a major transformation as the adoption of electric vehicles continues to accelerate. Beyond lowering emissions and reducing fuel costs, this shift is creating new economic opportunities for marginalized groups and demonstrating the broader social benefits of sustainable mobility. With government policies, private investments and charitable initiatives driving change, millions more people could gain access to affordable, clean transportation. The rise of electric vehicles in India not only signals progress toward a greener future but also highlights the power of technology and policy in improving livelihoods.

– Lizzie Mazzola

Lizzie is based in Raleigh, NC, USA and focuses on Good News and Technology for The Borgen Project.

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