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Wed, 03 Jun 2026

Wed, 03 Jun 2026 Costly fuel pushes more Indians to buy electric cars but challenges remain

High fuel prices are strengthening the case for EV adoption in the world's third largest auto market.

* India's electric vehicle (EV) market has grown by 25% in the year ending March 2026, with EVs now accounting for over 5% of the passenger vehicle market.
* Adoption is accelerating, particularly in larger cars priced above ₹1 million, where one in every 10 vehicles sold is now electric.
* Electric three-wheelers and motorbikes already account for more than 30% and 15% of sales in their respective categories.
* Upcoming regulatory norms (CAFE-3) will "meaningfully tighten regulation" and drive more visible acceleration in EV adoption, analysts say.
* CAFE-3 aims to reduce carbon emissions in cars from 113 to 76g/km by 2032, a 33% drop.
* India lags behind major global economies in EV adoption, with China at 53.3%, EU at 20%, and US at 8%.
* Charging infrastructure is uneven across regions, with just four of India's 28 states accounting for over 50% of the chargers.
* Analysts warn that the gaps in India's local supply chain are a major concern, including its dependence on global supplies of rare earths and lithium.
* Building an integrated mining to battery pack or magnet manufacturing supply chain can take longer than a decade.