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Electric Vehicles in India: Challenges to Adoption and Policies

​If we notice a few changes that have happened over the past few years, a significant change would be a shift towards the electric vehicle. The Governments of many provinces have indicated that they may ban the combustible engine in the coming 30 years. The clear indication has been the tax benefit for those who opt for an electric car. The recent edition of Auto EXPO showcased plenty of electric cars from top producers. Few of these models are already out for purchase while others will be out in a few months. 

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Current Electric Vehicle Policy in India

Government policies have a prominent role to play in the adoption of electric vehicles in India. People will only favour buying these if the Government policies match their needs. The Government has already realised the importance of electric mobility and launched a plan in 2013 called National Electric Mobility Mission 2020. The aim was to look at the goals and aim towards higher growth of EVs as a mode of transport. 

The FAME India scheme was also announced on similar grounds. The urgent need in India is of the charging infrastructure. This infrastructure will promote the growth of EV vehicle, only then will the prices go down. Another challenge is cost-cutting on the production with huge technological investment and a lot of extra things needed due to lack of infrastructure the current electric vehicle is on the expensive side. 

The NITI Aayog Yojana was also a similarly ambitious project. The vision was to achieve 100% electrification of all the commercial vehicles. The Government aims to first electrify all the public transport. It is supposed to tackle the environment and mobility-related issues in the country. 

The step is to build the right amount of demand and supply in an unstable market. â€‹

Factors that hinder the growth of Electric Vehicle in India

Lack of policy for the protection of EV: 

Profit determination in purchasing an EV is not very stable. It could be due to high production costs and uncertain policies developed around electric vehicles. It leads to discouragement in the industry to invest. Policies like Faster Adoption and Manufacturing of Electric Vehicle are extended constantly. Instead of pushing the deadlines, the focus should be on implementing them in a better way.


The problem for the consumer is the lack of proper infrastructure for the function of Electric Vehicle in India. The major problem is the charging infrastructure. There is hardly a charging infrastructure people would have heard. There is a lack of clarity around DC and AC charging stations. Electric Vehicle also needs better roads for a smoother run, this adds the lack of better roads and bridges. 


The battery used in an Electric Vehicle runs on Lithium and Cobalt. India is dependent on countries like Japan and China for the import of lithium-ion batteries. The depreciating value of rupee has thus discouraged the production. 

Whether electric or not, whatever car you are buying get car insurance online quickly for a secure drive and financial coverage during emergencies. Remember, a third party policy is mandatory but a comprehensive policy offer advantages much needed to secure your own car. Know the difference between third party and comprehensive car insurance policy and choose the correct policy.​