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Commercial industries are embracing EVs via innovative models that break conventional barriers, making them viable solutions for high-use operations. Urban mobility in India today is at a crossroads, shaped by converging forces: environmental requirements, strategic government incentives, and industry-wide innovation. In 2025, cities such as Delhi have witnessed the highest number of clean air days in the past decade, bearing testimony to well-considered policy interventions.
Yet, beneath these achievements, the enduring reality remains: frequent PM2.5 and PM10 pollution and persistent AQI alerts continue to challenge urban life outside the monsoon window, threatening public health and city vitality. Our progress, while marked, is unfinished—making the case for cleaner mobility stronger than ever.
What is different today is the scale and resolve with which stakeholders across society—government, industry, and consumers—come together in alignment for transformation. Electric vehicles, which started as a niche choice for environmentally conscious individuals, are now becoming a common sight on busy streets in major cities in India, like Delhi. This reflects a fundamental transformation in transportation habits across the country. With 5.675 million registered electric vehicles in the country as of February 2025, which is a massive increase compared to a decade ago when EV usage was nearly zero, this shift is vital for reviving the city’s liveability. Today, electric vehicles account for 7.66 per cent of overall vehicle sales in India.
Government leads the way
This change is mainly attributed to the government with policies in place for a systematic shift such as offerings of a multitude of supporting frameworks addressing both manufacturing and uptake challenges. FAME-II had funded 1.629 million vehicles, with a priority given to public transport as 5,165 buses were on the roads. The PM E-DRIVE program provides incentives to 2.479 million two-wheelers and 14,028 buses up to July 2025, with a view to cover trucks for the first time to mitigate their disproportionate pollution contribution.
Production-based incentives have attracted significant investments, fostering job creation and promoting local manufacturing through a focus on domestic local manufacturing ecosystems. India’s unique mobility landscape, characterised by a high prevalence of two-wheelers and short travel distances, has influenced policies to prioritise segments like public buses and urban freight, which contribute heavily to emissions despite their small share of the vehicle fleet. These initiatives, including schemes for passenger vehicles and electric bus deployment across states, work together to establish a robust and sustainable EV ecosystem.
Need for Battery Innovation: LFP is the solution
As India’s electric vehicle sector accelerates, the call for robust and climate-resilient battery technology has become urgent. EV uptake faces barriers unique to Indian roads: massive temperature swings, urban heat waves exceeding 50°C, mountainous cold, congested traffic, rough surfaces, and unpredictable charging opportunities. Solutions must be tailored for local realities—a charging ecosystem with low operating costs (typically ₹6–₹12 per kWh), and tech that copes with both urban and rural deployment. Indian consumers and fleet owners prioritise price, reliability, and durability, often over peak energy density or cutting-edge luxury.
Thus, next-generation batteries like LFP (Lithium Iron Phosphate), which offer safety, lower costs, and longer lifespan, align ideally with India’s needs for scalable, affordable and durable mobility. Indian manufacturers are adopting LFP chemistry for entry-level and mid-range vehicles, urban fleets, and commercial buses, drawn by their safety features, extended lifecycle (up to 10 years and 4,000+ charge cycles), and cost advantages.
LFP batteries offer thermal stability in India’s hot climate, leverage locally available resources, and avoid reliance on global cobalt and nickel supply chains, resulting in improved affordability and supply security.
This shift is crucial: LFP cells now account for around 40 per cent of the global EV battery market, and projections indicate they could reach 55-60 per cent adoption in India by the end of this year, especially in fast-growing segments like two-wheelers, e-rickshaws, and public buses.
Cleaner air, quieter streets, and energy independence are on the horizon
Alliances between the government, industry, and technology players are necessary to break these barriers and drive the sector forward, as evidenced in the installation of 9,332 charging points with a funding of 912.50 crore and state-level evaluation through the India Electric Mobility Index, whereby Delhi, Maharashtra, and Chandigarh are leading players.
Commercial industries are embracing EVs via innovative models that break conventional barriers, making them viable solutions for high-use operations. In last-mile delivery, Fleet-as-a-Service enables firms to rent cars without significant initial investments, reducing risks and allowing for expedited scaling for e-commerce and logistics companies.
This shift in Delhi and beyond represents an important moment for the future of India. With a penetration target of 30 per cent EVs by 2030, the ability to cut one billion tonnes of emissions is reasonable, which would lead to cleaner air, quieter streets, and better energy independence, possibly for generations.
However, this vision will not become a reality without the collective actions of cities needing more charging stations, businesses needing to adopt electric fleets, and policymakers needing to increase incentives. The shift from being a conscious choice to an everyday sight will take an all-out commitment from everyone to make a healthier, sustainable future possible.
(The author is Managing Director of Greaves Electric Mobility)
- Published On Sep 9, 2025 at 08:10 AM IST
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