The electric vehicle and EV adoption are gaining traction in India as the year 2025 is witnessing record-breaking sales across all segments ranging from electric two-wheelers to electric buses. But does an average Indian customer dream of buying an electric vehicle easily? Electric vehicle ownership still elicits questions: Is it too much? Can I just change it? What about the long-term costs? These are valid issues and will need to addressed if India hopes to achieve its climate commitments and electrify the nation.
Here are ten impactful and practical measures to make electric vehicle ownership affordable and accessible to every Indian.
1. Enhance Central Government Incentives
The Indian government has generally been very supportive of EV purchases, but programs could be made more effective and accessible. A new set of schemes called PM e-Bus Sewa and PM e-Drive launched in late 2024 appear to already be having a positive impact. Especially PM e-Drive, which offers a direct subsidy to incentivize purchases of electric vehicles in less developed regional city demands and rural locations. These subsidy programs will help to reduce up-front costs, which is often the primary impediment to EV sales. The PM e-Drive announced over ₹3,600+ crore in expected allowances, which will support more than twenty-five percent increases in electric vehicle sales in tier 2 and tier 3 cities in 2025.
2. Improve State-Level EV Policies
While national schemes create a framework, states are left to take it to the next level. Maharashtra, Tamil Nadu, Delhi, and Uttar Pradesh have emerged as EV leaders. Maharashtra’s newly launched 2025 EV policy of economic incentives includes electric vehicle subsidies of up to ₹2 lakh on the purchase of an electric vehicle and 100% waiver of applicable road tax.
By allowing local details and design in incentives, even more, Indians can access EV adopters without overly depreciating their financial position. States like Assam, Gujarat, and Punjab are currently updating EV policy frameworks, and maybe now they have broader socio-economic considerations.
3. Expand Public Charging Infrastructure
The most frequently cited barrier to EV adoption is “range anxiety.” Fortunately, cities like Delhi and Kolkata are making major headway in building electric vehicle charging infrastructure. Delhi’s 2025 plan mandates charging stations every 5 kilometers on major roads, while Kolkata has introduced an EV dashboard to help owners locate nearby chargers in real-time.
The goal is clear: make charging a non-issue. More fast chargers in residential societies, malls, and highways will lead to a surge in electric vehicle confidence and purchases.
4. Offer Battery Swapping Options
Battery swapping is emerging as a game-changer, particularly for commercial electric vehicles like rickshaws, delivery bikes, and cargo vans. The Indian government’s Battery Swapping Policy — launched in 2023 — is now gaining momentum with 2025 seeing over 2,000 swap stations operational nationwide.
This method reduces downtime, eliminates the need for home charging, and brings down ownership costs. For many users, battery-as-a-service (BaaS) could be the key to affordable EV adoption.
5. Make EV Loans Cheaper and Easier
Financing is crucial. Several banks and NBFCs now offer electric vehicle loans at reduced interest rates, sometimes as low as 6.9%. SBI and HDFC have introduced EV-exclusive products with longer repayment windows and minimal documentation.
In addition, tax benefits under Section 80EEB of the Income Tax Act allow individuals to claim deductions up to ₹1.5 lakh on EV loan interest. Making EV finance more accessible directly accelerates EV adoption, especially among young and first-time car buyers.
6. Promote Subscription and Leasing Models
Subscription-based ownership is gaining ground in urban India. Instead of paying ₹15–20 lakh upfront for an electric vehicle, users can now pay a monthly fee that includes the vehicle, insurance, servicing, and even charging support.
Tata Motors and Ather Energy are at the forefront of these models, which offer flexibility without long-term commitment. For users hesitant about resale value or battery life, leasing models make EV adoption much more approachable.
7. Support Local Manufacturing of EV Components
India still imports a large chunk of its EV batteries, motors, and controllers — leading to inflated prices. However, 2025 has seen a spike in local electric vehicle component manufacturing, thanks to the PLI (Production-Linked Incentive) scheme.
OEMs like Ola Electric, Ather, and Exide are setting up battery gigafactories, while startups like Log9 and Vecmocon are working on indigenous BMS and powertrains. Local production can cut costs by 20–30% over time, reducing electric vehicle sticker prices.
8. Create EV Education and Awareness Programs
Despite increased visibility, myths about electric vehicles persist — particularly in rural and semi-urban areas. Government-backed platforms like E-AMRIT are helping bridge this gap with multilingual resources on EV benefits, charging, cost of ownership, and subsidies.
Auto dealerships and OEMs must also invest in customer education. Empowering consumers with facts will not only build trust but also encourage faster EV adoption across demographics.
9. Incentivize Fleet and Commercial Transitions
Commercial operators — ride-hailing services, last-mile delivery companies, and logistics firms — are key to mass electric vehicle deployment. Recognizing this, India’s 2025 EV roadmap offers special incentives for fleet transitions, including reduced GST on electric three-wheelers and e-trucks.
Ola, Uber, Amazon, and Zomato have already pledged to shift to 100% electric fleets by 2030. Their participation is vital, as every e-rickshaw or e-scooter on the road normalizes EV adoption and sets a precedent for consumers.
10. Build Rural EV Ecosystems
While urban India is seeing solid growth in electric vehicle use, rural areas remain largely untapped. Building mini-charging hubs, training local technicians, and subsidizing EV dealer networks in rural zones can unlock massive potential.
Moreover, affordable electric vehicles like electric two-wheelers and low-speed e-rickshaws are ideal for rural transport needs. The government and private players must invest here to ensure EV adoption doesn’t remain an urban phenomenon.
Final Thoughts
India is on the cusp of a major mobility transformation. Making electric vehicle ownership more affordable and accessible isn’t just about selling more EVs — it’s about creating an ecosystem where infrastructure, financing, policy, and public perception align.
With coordinated efforts from governments, businesses, and consumers, EV adoption can become mainstream much faster than predicted. The electric road ahead is full of promise — now is the time to ensure every Indian has access to it.