Mind The Gap: Infra For Mass EV Roll-Out Still In The Works

However, India’s ambitious EV transition is encountering monumental challenges, with a recent litigation filed in the Delhi High Court spotlighting the nation’s unmet goals towards its ambitious 2030 EV adoption targets. This legal action underscores rising concerns over policy inconsistencies, sluggish implementation and the likely dominance of foreign players in the domestic EV market. 

Call For Policy Implementation 

The litigation, filed in late April 2025, explicitly states that the central and state governments have effectively failed to meet the EV adoption commitments, most notably the EV30@30 goal, which aims for 30 per cent of new vehicle sales to be electric by 2030.

The petition highlights the lack of uniform and cohesive policy execution and insufficient infrastructure development as major obstacles hindering EV adoption. It goes on to mention that, except for small subsidies being made available during the purchase of EVs, both central and state government are severely lacking when it comes to expansion of charging infrastructure. 

A study by International Council on Clean Transportation (ICCT) also reveals that not all states are doing enough to enable mass rollout of charging infrastructure, which is key towards building a comprehensive network of stations and to spurring drivers’ confidence in EVs.

Only Andhra Pradesh, Chandigarh, Karnataka, Delhi, Punjab, Tamil Nadu, and West Bengal have proposed the creation of bylaw modifications to boost EV charging setups. Gujarat has gone a step further and offered no-objection certificates to any home or business with a designated parking spot for charging stations.

However, the lack of uniformity across states has been quite reflective of the ground reality and number of EVs on the road. The figure below sheds some light.

Policy Landscape: Ambitious Goals Vs Ground Realities

India's EV policy framework has witnessed several initiatives like National Electric Mobility Mission Plan (NEMMP), Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME I & II), Production-Linked Incentive (PLI) Scheme and most recently the EV Import Policy.

These policies have paved the way for the ecosystem upto a certain degree. Despite these initiatives the challenges remain. The EV market share in India remains low, with EVs accounting for only about 2 per cent of total vehicle sales. Significant hurdles such as limited charging infrastructure, high upfront costs, and range anxiety continue to deter consumers

Foreign Investment Vs Domestic Industry: A Delicate Balance

India’s recent policy shifts have incentivised the field for foreign EV manufacturers, most notably Tesla. The government had proposed lowering tariffs on EVs to facilitate trade agreements.

This move came after Tesla which had long sought reduced tariffs, made the argument that lower import duties would give it an opportunity to test the Indian market before it can commit to manufacturing locally.

In contrast, homegrown giants like Mahindra and Tata Motors have opposed tariff reduction policies, pushing back against slashed EV import duties, warning that it could open the floodgates for foreign — especially Chinese — players to undercut their investments and derail India’s EV ecosystem. They’d rather see a phased tariff cut by 2029.

Under the new policy, companies are required to achieve a minimum turnover of ₹2,500 crore in the second year, which escalates to Rs 7,500 crore by the fifth year, to enjoy tariff breaks.

The caveat however is that past investments and costs related to land and other infrastructure is not considered in the investment threshold which severely cripples domestic players. In trying to welcome Tesla, India may be pushing its local EV champions, both legacy players and new innovators, into a tight corner. 

Infrastructure, Environmental Concerns

While policy and investment challenges remain, infrastructure development remains a critical bottleneck. "The lack of and even absence of charging stations, especially in Tier 2 cities and rural areas, hampers EV adoption," pointed out officials in Maharashtra.

Further, the environmental impact of critical EV components like battery waste poses significant challenges. Companies like Log9 Materials are leading the charge with a recycling programme that repurposes batteries for their second life, such as renewable energy storage needs. However, comprehensive recycling targets and clearer guidelines are needed to mitigate potential environmental hazards. 

Policy Implications and the Road Ahead

The litigation has effectively struck a high-voltage chord in India’s EV conversation and has forced both policymakers and industry leaders to address the glaring disconnect between ambition and action. While India has set bold targets for EV penetration, the ground realities tell you a completely contrasting story.

The ecosystem has seen a snowballing effect right from poor infrastructure, inconsistent policy narratives and ultimately tepid domestic uptake. Subsequent discussions are therefore needed, underscoring the need for a more inclusive and cohesive EV narrative in India. These can be as follows:

First, an enhanced inter-state coordination nodal agency is essential. A dedicated coordination agency could help in streamlining implementation, track progress and address current gaps between policy and on-ground execution.

Second, it is paramount to scale up EV charging infrastructure, especially in especially in Tier 2 and 3 cities. This will act as an enabler in boosting consumer confidence, mitigate range anxiety and eventually drive demand.

Third, as global players penetrate the Indian market, support for domestic manufacturers by means of targeted incentives and relaxed investment norms is necessary to remain competitive and meaningfully contribute towards local innovation and employment.

Lastly, robust environmental safeguards, including battery recycling protocols and frameworks for EV component disposal need to be effectively embedded into the policy framework to the transition to electric mobility is truly sustainable and circular in nature.

As India navigates the complexities of transitioning towards electrification, balancing foreign investments with domestic industry ambition and environmental considerations will be crucial. The outcome of the PIL and subsequent policy adjustments will significantly influence the trajectory of India's EV landscape in the coming years.

(The writer is a public policy and urban transportation enthusiast and specialist. Views are personal.)