In a recent interaction with Ayush Lohia, CEO of Youdha EV, conducted by Sanjana Negi, the entrepreneur shared valuable insights into India’s rapidly evolving electric vehicle landscape and the growing role of EVs in shaping the country’s economic and environmental future. Speaking about the Prime Minister’s emphasis on judicious fuel use, Mr Lohia described electric mobility as not just a sustainability initiative but a strategic necessity for reducing India’s dependence on imported fossil fuels and strengthening long-term energy security.
The Prime Minister recently emphasized judicious fuel use. Do you see this as a stronger national push toward EV adoption?
Absolutely. The Prime Minister’s message on reducing fuel consumption is more than symbolic — it reflects a strategic national direction toward energy efficiency and electric mobility. India remains heavily dependent on crude oil imports, and fluctuations in global fuel prices directly impact inflation, logistics costs, and economic stability.
What we are witnessing today is a policy environment where EVs are no longer viewed only as a sustainability initiative but as an economic necessity. Government-led measures around fuel conservation, electrification of public mobility, and EV manufacturing clearly indicate that India wants to reduce dependence on fossil fuels over the long term.
The encouraging part is that the EV ecosystem today is far more mature than it was even three or four years ago, especially in commercial mobility segments like electric 3-wheelers where adoption is already happening at scale.
With fuel prices remaining volatile globally, how critical is electric mobility for India’s energy security?
Electric mobility is becoming extremely important for India from both an economic and strategic standpoint. India imports a substantial share of its crude oil requirements, which exposes the country to geopolitical risks and unpredictable fuel prices.
EVs can significantly reduce this dependency while also helping cities tackle rising pollution levels. For commercial users, especially auto drivers and fleet operators, electric mobility offers predictable and lower running costs compared to petrol, diesel, or even CNG vehicles.
Over the next decade, EV adoption will play a major role in strengthening India’s energy security, lowering carbon emissions, and building a more sustainable urban transport ecosystem.
India’s EV market has expanded rapidly in the last few years. What’s driving this shift in consumer mindset?
The biggest factor today is economics. Consumers are increasingly calculating total cost of ownership rather than focusing only on upfront vehicle cost. In commercial mobility, drivers quickly realize that EVs offer significantly lower daily operating expenses and lower maintenance costs.
At the same time, awareness around sustainability and urban pollution has increased considerably. Better financing availability, government incentives, and advancements in battery technology have also improved consumer confidence.
India’s EV market crossed approximately 2.3 million unit sales in 2025, accounting for nearly 8% of all new vehicle registrations, according to industry reports based on Vahan data.
The electric 3-wheeler category, in particular, has emerged as one of the fastest-growing segments in the country’s EV transition.
Electric 3-wheelers are now leading India’s EV transition. Why has this segment scaled so quickly?
Electric 3-wheelers are uniquely suited for India’s mobility ecosystem. These vehicles operate extensively in urban and semi-urban areas for passenger transport and last-mile deliveries, which means their daily running costs directly impact driver earnings.
Since EVs offer much lower per-kilometer operating costs, the economic advantage becomes visible very quickly. Additionally, these vehicles contribute significantly to reducing both air pollution and noise pollution in densely populated cities.
Industry data now shows that EVs account for over 60% of India’s 3-wheeler sales in several recent periods, making this segment the strongest example of successful EV adoption in the country.
This demonstrates that when economics, practicality, and policy support align together, EV adoption can scale very rapidly.
Q5. Despite subsidy reductions in several states, EV sales continue to rise. Does this indicate that the industry is maturing?
Yes, definitely. In the early stages, subsidies were important to create initial momentum and encourage consumers to experiment with new technology. But now, particularly in commercial EV segments, the market is becoming increasingly self-sustaining.
A major indicator of this maturity is the electric 3-wheeler segment. Under the PM E-Drive scheme, the government ended incentives for e-3W L5 vehicles after adoption targets were achieved ahead of schedule. EV penetration in this category reached nearly 32%, which is a strong milestone.
Today, most customers are choosing EVs because the business case makes sense financially, not simply because of subsidies. That is a very important shift for the long-term sustainability of the industry.
Charging infrastructure still remains a challenge. What are the top priorities India must address immediately?
The first priority is expanding charging infrastructure density and reliability, especially in Tier-2 and Tier-3 cities and along highways. India has added a large number of charging stations in recent years, but accessibility and uptime consistency still remain concerns.
Second, battery swapping infrastructure can become a game changer for commercial electric vehicles because it minimizes downtime and improves vehicle utilization for drivers.
Third, there must be stronger coordination between government agencies, DISCOMs, OEMs, and private charging operators to create standardized and interoperable charging systems.
Infrastructure growth has to move parallel with vehicle adoption if India wants to sustain long-term EV expansion.
Tier-2 and Tier-3 cities are now driving EV growth. Why are electric 3-wheelers performing strongly in these markets?
Tier-2 and Tier-3 markets are naturally well-suited for electric 3-wheelers because driving patterns are more predictable and commercial operators are extremely cost-conscious.
Drivers in these cities quickly understand the savings they can achieve through lower fuel and maintenance expenses. Additionally, smoother driving experience and lower noise levels are helping generate strong word-of-mouth adoption.
However, financing accessibility, charging infrastructure, and after-sales service networks are still evolving in smaller towns. Many first-time EV buyers also need more confidence regarding battery life, resale value, and long-term reliability.
Addressing these concerns will be essential to unlocking the next phase of growth.
How does the total cost of ownership of an electric 3-wheeler compare with ICE vehicles today?
In most commercial use cases today, electric 3-wheelers already offer a significantly lower total cost of ownership compared to internal combustion engine vehicles.
Although the upfront purchase cost can sometimes be slightly higher, the savings on fuel and maintenance are substantial over the vehicle lifecycle. Electricity costs per kilometer are far lower than petrol, diesel, or CNG, while maintenance expenses are reduced because EVs have fewer moving parts and lower mechanical wear.
For fleet operators, this directly improves profitability and operating margins over time. That is one of the biggest reasons why electric 3-wheelers are scaling faster than many other EV categories in India.
Beyond manufacturing vehicles, what role should OEMs play in accelerating EV adoption?
OEMs today must go beyond simply selling vehicles. Financing support is extremely important because many commercial drivers still struggle to access affordable loans.
Manufacturers should work closely with NBFCs and financial institutions to create flexible financing models tailored for EV buyers.
Driver education is equally critical. First-time EV users often require training around charging practices, battery management, and efficient driving habits.
After-sales service is another major pillar. Strong service networks, fast spare-part availability, roadside assistance, and battery support are essential to building long-term trust in EV technology.
The companies that focus on ecosystem development — not just vehicle sales — will lead the next phase of EV adoption.
Looking ahead 3–5 years, what policy shift or partnership can help India emerge as a global EV hub?
India has a tremendous opportunity to become a global EV manufacturing and innovation hub, particularly in affordable mobility solutions.
The most important requirement now is building a strong domestic battery ecosystem — including cell manufacturing, recycling capabilities, and raw material supply chains. Battery localization will be critical for reducing costs and improving long-term competitiveness.
At the same time, deeper partnerships between government bodies, OEMs, battery manufacturers, charging infrastructure providers, and energy companies will be necessary to create an integrated EV ecosystem.
India has already demonstrated strong momentum in electric 2-wheelers and 3-wheelers. If policy stability, local manufacturing, and infrastructure expansion continue at the current pace, India can emerge as one of the world’s leading EV markets and export hubs within the next five years.
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