The rising cost of petrol and diesel in India is accelerating a shift towards electric vehicles, yet the country's charging infrastructure remains inadequate to support the growing number of EVs on its roads, according to industry data and government reports.
Indian consumers purchased a record 1.5 million electric vehicles in the financial year ending March 2024, a 50% increase from the previous year, driven largely by soaring fuel prices that have added pressure to household budgets. Petrol prices in major cities like Delhi and Mumbai have risen by over 20% since 2021, making the lower running costs of EVs increasingly attractive. Two-wheelers account for the majority of sales, with electric scooters and motorcycles outselling cars, but passenger EV sales also grew by 80% in the same period.
However, the expansion of the charging network has not matched this pace. India has only about 12,000 public charging stations for its 3.3 million EVs, a ratio of roughly one charger for every 275 vehicles. In contrast, China has one charger for every six EVs. The Ministry of Power has acknowledged the shortfall, noting that most charging points are concentrated in urban centres, leaving rural and intercity routes underserved.
The government has set a target of installing 500,000 public chargers by 2030 to support an estimated 50 million EVs. But current deployment rates suggest this goal may be missed. Industry analysts point to bureaucratic hurdles, high land costs, and inconsistent electricity tariffs as barriers to private investment in charging infrastructure. State-owned energy companies have been tasked with expanding the network, but progress has been slow.
The disparity is most acute on major highways. A journey from Delhi to Mumbai, a distance of 1,400 kilometres, passes through only five operational fast-charging stations, forcing EV drivers to plan lengthy detours or risk running out of power. This range anxiety remains a significant deterrent for potential buyers, particularly in a country where long-distance travel by car is common.
Automakers are responding by investing in their own charging networks. Tata Motors, which dominates the Indian EV car market with a 70% share, has installed over 3,000 chargers at its dealerships and partner sites. Mahindra & Mahindra and Hyundai have also announced plans to expand their networks. But analysts argue that these efforts are insufficient without a coordinated national strategy.
The government has introduced subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme to reduce upfront costs for buyers and incentives for charger installation. Yet implementation has been uneven. A parliamentary committee report in December 2023 criticised the slow disbursal of funds and lack of standardisation in charging connectors, which complicates interoperability.
Environmental benefits of the EV shift are clear. The transport sector accounts for 13% of India's carbon emissions, and electrification could reduce oil imports by 10% by 2030, according to the Council on Energy, Environment and Water. But the grid must also be prepared. India's electricity generation still relies heavily on coal, meaning EVs are only as clean as the power they consume. The government has pledged to add 500 GW of renewable capacity by 2030, but progress has been sluggish.
For now, Indian consumers face a trade-off. The financial incentive of lower fuel costs is compelling, but the practical limitations of a patchy charging network continue to temper enthusiasm. Until infrastructure catches up, the full potential of the EV revolution in India will remain unrealised.
