INR 16,000 Crore Is Required To Meet Public Charging Demand For EVs By 2030: Report Innovation and research will be key in driving down costs and improving efficiency of electric vehicles.
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India stands at a critical juncture in its journey towards green and sustainable transportation. According to a FICCI-McKinsey report, INR 16,000 crore capex is required to meet India's public charging demand for EVs by 2030. Innovation and research will be key in driving down costs and improving efficiency of electric vehicles. "We are actively supporting research initiatives in battery technology, charging infrastructure and recycling," Said HD Kumaraswamy, minister for Heavy Industries and Steel, Govt of India. The PM e-drive is focused on creating an expansive EV ecosystem that supports both manufacturers and consumers through incentives and infrastructure development. The minister further stated that the government's commitment to sustainable mobility goes beyond policy, and it embodies a vision of energy security, cleaner air, and modernised transport.
Kumaraswamy highlighted that the Ministry of Heavy Industries is leading the nationwide push for electric vehicle adoption, contributing to India's ambitious net-zero target for 2070. "Electric vehicles represent not only an environmental commitment but a transformative shift for India's economy, industry and society. The government is committed towards this vision and is implementing measures to strengthen the EV sector's foundation," he added.
Dr Anish Shah, president, FICCI and Group CEO & Managing Director, Mahindra Group said, "In the last four years, the EV industry has transitioned from 0 per cent to 23 per cent. The subsidy has come down from INR 1 lakh to INR 50,000, and now to INR 25,000, as increased volumes and scale have driven down costs. This subsidy will continue until the end of FY26. Beyond FY26, it will no longer be required, because we will reach that level of scale where the industry can fund it themselves."
India has the target of increasing the EV sale penetration to reach 30 per cent by 2030 and the government is working in that direction. Tarun Kapoor, adviser to PM, Prime Minister's Office stated that the EV sector is important not only from the energy security point of view but also the aim of the government is to make India a hub of EV manufacturing. "On two-wheelers, we should have much higher targets and a complete replacement is what we have to look for in this segment. On three-wheelers as well, the switch has to be 100 per cent, at least in some cities. On 4-wheelers, the government is fully supportive and there is a need to look at GST on batteries and charging stations," Kapoor added.
