The current rate stands at 7.6%, and according to Sudhendu Jyoti Sinha, Programme Director for E-Mobility at NITI Aayog, India needs to work with greater urgency and better coordination to meet its goals.
Speaking to CNBC-TV18
, Sinha explained that the latest report was prepared after extensive stakeholder consultations, including input from over 160 industry participants. These discussions highlighted the gaps in infrastructure, financing, awareness, and R&D.
Sinha emphasised that reaching the 2030 target will require a “host of interventions.” These include improving the EV charging network, increasing awareness, encouraging research, and shifting focus from upfront vehicle cost to long-term operational benefits. Financing and ease of credit access will also be critical.
The report also calls for regulatory mandates and subtle disincentives for internal combustion engine (ICE) vehicles. However, Sinha was clear that such mandates should act as “gentle nudges,” not harsh measures that could disrupt the industry.
He pointed out that sectors like electric buses and three-wheelers have already shown strong performance, suggesting that India is capable of making this transition.
Addressing the high upfront cost of EVs, Sinha endorsed battery leasing and battery-as-a-service models as major cost-saving tools. Since batteries account for 35–55% of an EV’s cost, decoupling them from the vehicle purchase could significantly ease adoption. Some OEMs are already adopting this model successfully.
Sinha acknowledged that the pace of charging infrastructure growth needs to pick up. He said oil marketing companies have been tasked with installing 27,000 stations, but more coordination is needed with state discoms to ensure faster rollout. A new Electric Mobility Index is being used to rank states based on their EV readiness, with charging network development given high weightage.
He added that the goal is to develop EV charging as an independent business opportunity to attract more private investment.
Lastly, Sinha highlighted that financing is improving, with banks and NBFCs showing more confidence in lending across the EV value chain. He called for continued government support in guiding financial institutions, and suggested that loans for trucks and public transport should now be prioritised, possibly at reduced interest rates.
For the full interview, watch the accompanying video
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