India’s EV transition needs target-driven interventions

How performance and cost benchmarks can drive mass adoption

EVs are widely promoted as a key driver of decarbonisation and cleaner cities. Yet, current adoption rates fall short of what is needed to meet net-zero goals, as highlighted in a recent report by the Federation of Indian Chambers of Commerce and Industry (FICCI). If EVs remain expensive or inconvenient, a forced adoption could disrupt lives and deter national goals.

Despite a decade of incentives, there is still a lack of urgency to accelerate EV adoption and address key barriers. To ease the transition, policy must align with industry to unlock faster, cheaper, and longer-range EVs. Achieving this will require clear and forward-looking supply-side interventions, including ambitious but achievable targets for cost and performance.

As per the Society of Indian Automobile Manufacturers, India sells over 2.5 crore vehicles annually. More than 75% of these vehicles are two-wheelers, serving not as luxury goods but as daily workhorses for millions. Our analysis showed that 80% of all two-wheeler sales come from merely 10 models, priced between INR 85,000 and 96,500. This price band is where the mass EV transition must be targeted. Although some electric two-wheelers (E2Ws) are available in this price range, they cannot compete with conventional two-wheelers in terms of performance, range, and refuelling speed. If EVs cannot match internal combustion engine (ICE) vehicles where it matters, people will not make the switch. For EVs to scale effectively, they must be available at a price and performance level that meets mainstream demand.

Performance parity between ICE vehicles and EVs

Although most daily commuters travel short distances, a lack of access to home charging could make switching to EVs difficult. With larger batteries, a single weekly charge can eliminate the need for frustrating daily visits to the sparsely available public chargers. Occasional trips of 100–200 km to nearby destinations, although infrequent, are essential for users, and EVs must be able to handle them without inconvenience. No one wants to buy a vehicle that demands a drastic change in how they travel!

Seasonal/part-time delivery workers (or gig workers) with personal two-wheelers add another layer. Gig workers ride 150–250 km daily, and charging breaks mean lost income. This makes conventional two-wheelers the preferred choice. To shift this perception, E2Ws need to deliver 150 km range, 15-minute charging, and all-day reliability. These aren’t edge cases but both real and psychological necessities. EVs must match what ICE two-wheelers already deliver. Price parity is necessary, but without performance parity, adoption will stall.

Battery price target

Batteries account for approximately 40% of the total cost of an EV, while the international market price is estimated at INR 8,800 per kWh. Indian E2Ws require a battery pack of up to 6 kWh to provide a comfortable 150 km of real-world range. This is nearly double the size of today’s E2W batteries. To achieve cost parity with petrol two-wheelers at INR 85,000 (and with standardised 15-minute fast charging), battery prices must fall to about INR 4,400 per kWh.

Scaling up manufacturing significantly can drive down battery prices by nearly half. A 2019 report noted that every doubling of production reduces battery costs by ~18%. To cut costs in half, production must double five times. India’s cell manufacturing and supply chain ecosystem is still in its infancy. To realise the 18% cost reduction per doubling, domestic EV and cell manufacturing must scale proportionally. However, domestic EV sales grew only 15% YoY in 2024–2025.

Domestic demand alone would take an excruciatingly long time to reach economies of scale organically. Therefore, the ecosystem needs bold, target-driven interventions to scale domestic manufacturing and unlock practical and affordable EVs.

Desired industry attitude

India’s EV ecosystem stands at a crossroads. While battery technology in countries like China has advanced over the past few decades, our domestic industry is still relatively young, working hard to build scale, talent, and trust. Now, more than ever, we need our automotive sector to dream big. Over seven years and lakhs of EVs later, it’s time to move beyond cautious iteration. Despite platform reuse and maturing technology offering early advantages, meaningful price drops remain elusive. If India truly wants to lead, the industry must step up with performance-driven innovations that make EVs a no-compromise choice for every Indian.

India’s transition to electric two-wheelers needs more than general incentives. It calls for clear targets grounded in what everyday users truly need. The ideas here draw on practical reasoning and rough estimates, intended to open a new way of thinking.

Price, real-world range, and charging time are three such targets among many that could guide the ecosystem towards meaningful innovation. Future supply-side incentives (or regulations) could be structured to meet these benchmarks, rewarding products that deliver ease of use at scale. This will accelerate EV adoption and support India in achieving its environmental and energy independence goals amid the global expansion of the automotive sector.

About the author

Ankith Hebbar P

Ankith is a Senior Associate working in the green mobility team at the Centre for Study of Science, Technology and Policy (CSTEP), Bengaluru. His current areas of focus include EV supply-chain resilience, renewable-energy-integrated charging infrastructure, freight decarbonization, and global EV policy benchmarking.

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