Electric Vehicle Adoption Trends in India: Barriers and Enablers

Author(s)	Mr. Rachit Gupta
Country	India
Abstract	India's electric vehicle market has grown rapidly, with EVs accounting for approximately 8 percent of new vehicle registrations in 2025 and total sales crossing 2.55 million units in FY2025-26. This paper examines EV adoption trends across vehicle segments, identifies the principal barriers constraining adoption, and analyses the policy and market enablers driving growth. Drawing on VAHAN portal registration data, Ministry of Heavy Industries disclosures, and assessments by CEEW, IEEFA, ITDP, and JMK Research, the study finds adoption concentrated in two- and three-wheeler segments. Dominant barriers are high upfront cost, inadequate charging infrastructure, resale value uncertainty, and imported battery cell dependence. Key enablers include central demand incentives under FAME II and PM E-DRIVE, state policies, favourable total cost of ownership, and emerging domestic cell manufacturing. The paper concludes with policy recommendations on charging infrastructure, financing innovation, and battery localisation.
Keywords	Electric Vehicles, EV Adoption, India, Charging Infrastructure, FAME II, PM E-DRIVE, Battery Manufacturing, Sustainable Mobility
Field	Business Administration
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-19
DOI	https://doi.org/10.36948/ijfmr.2026.v08i04.86096

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