Scaling Electrification for Sustainable Transportation

Scaling Electrification for Sustainable Transportation

The mission to catalyse the transition to green mobility is possible only through large scale electrification in the transport sector. The transition to electric vehicles offers both environmental and financial benefits. From the environmental perspectives, electrification of transportation will lead to better air quality, as particulate matter can be reduced or even eliminated in urban settings. As last mile logistics contribute to 50% of logistics related emissions, switching from internal combustion vehicles to electric vehicles will also drive down related emissions. With fluctuating costs of petrol, CNG, diesel and maintenance costs of vehicles, adoption of electric vehicles can also help companies increase their profit margins. 

India’s support for electrification of road transport is supported by two flagship national programs: the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, and the Production- Linked Incentive (PLI) schemes. 16,29,600 EVs have been supported under FAME-II (as of June 2025), with a focus on expanding the e-bus network and strengthening the charging infrastructure. 

Policy Level Support 

The PLI scheme is also fuelling India’s ambition to become a global hub for advanced automotive technologies through boosting manufacturing of Advanced Automotive Technologies (AAT) and Advanced Chemistry Cell (ACC) Battery Storage. Both of these are crucial for strengthening India’s electrification and energy storage ecosystem. 

Furthermore, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM‑E DRIVE) focuses on curbing emissions in the transportation sector by accelerating electric mobility through incentives and subsidies. The scheme is mainly focused on e-2w and e-3w and e-trucks, e-ambulances and e-buses. Alternatively, the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), focuses on making India a global hun for electric car manufacturing. 

Challenges in Electrification 

As India remains steadfast in its mission to achieve 30% share of EVs, in the total vehicles sold by 2030, policy level support from the government along with private sector initiatives are going to be crucial. According to NITI Aayog’s report Unlocking a $200 Billion Opportunity: Electric Vehicles in India, India is doing well with electric two-wheelers and three wheelers, but the progress has been slow with cars and buses. It highlights various challenges that needs to addressed: 

• Challenges related to financing, especially electric buses and trucks. 
• Lack of charging infrastructure along with low utilisation of existing public charging facilities. 
• Lack of awareness about EV performance. 
• Inadequate data and regulatory gaps, hindering policy design, subsidy targeting and decision-making. 

 Solutions for Quicker Adoption 

According to a report by the International Energy Agency, electrification of cars and trucks accounts for maximum emission abatement potential, making the transition an urgent need. Hence, some practical approaches to make this possible are: 

• Mandating Zero Emission Vehicle (ZEV) adoption with target timelines. 
• Expanding Corporate Average Fuel Efficiency (CAFÉ) norms to a wider segment of vehicles. 
• Setting up academia-industry-government partnership for accelerating research on new battery chemistries. 
• Identification of strategic locations for charging hubs for e-buses and trucks, based on voltage patterns. 
• Setting training across National Skill Development Corporation (NSDC), Automotive Skills Development Councils (ASDC), etc. to ensure a future-ready service ecosystem and creation of high-demand green jobs. 
• Government backed low-interest loans to finance purchase of EVs, especially e-trucks for private players. 
• Inclusion of EV loans under the Priority Sector Lending (PSL) framework to enhance risk appetite among financial institutions. 
• Improving VAHAN database to better track data and publicly disseminate all information related to current EVs on the road.  
• Increase awareness about the range and safety of EVs through government and private mediums. 

Green mobility in India is no longer an aspiration, but a movement that is expanding as our economy grows. Transportation is no longer about getting from point A to point B, but creating a future with lower footprint, cleaner air and healthier cities.