EV Slowdown in India: What's Going Wrong?

Electric Vehicles (EVs) were once the poster child of India’s green transition. Government subsidies, tech startups, and rising fuel prices all pointed toward a future where EVs would dominate Indian roads. But as we step into 2025, the momentum seems to be fading.

What’s Causing the Slowdown?

There are several interlinked reasons behind the sudden dip in enthusiasm:

• Policy Uncertainty: Frequent changes in subsidy policies, especially under the FAME II scheme, have confused both buyers and manufacturers.
• Charging Infrastructure: Despite progress in metros, tier 2 and tier 3 cities still lack reliable EV charging stations.
• High Upfront Cost: Even with subsidies, EVs often cost more than their petrol or diesel counterparts.
• Range Anxiety: Consumers are still hesitant about long-distance travel, especially with poor after-sales service in remote areas.

The Fall in Sales

According to industry data, EV sales in Q1 2025 dropped by nearly 18% compared to the same quarter in 2024. This marks the first decline in over three years, worrying stakeholders across the ecosystem.

"The EV dream is still alive, but it needs a serious recharge — in policies, in infrastructure, and in trust." — Industry Analyst

Government and Industry Response

To address this, the government is considering revising the FAME III policy to make incentives more consumer-focused. Meanwhile, major players like Tata Motors and Ola Electric are reworking their strategies, focusing on battery innovations and rural outreach.

What Needs to Change?

If India wants to revive its EV revolution, it must focus on:

• Stable and transparent subsidy policies
• Massive investment in nationwide charging infrastructure
• More affordable and reliable models for middle-class buyers
• Awareness campaigns to reduce consumer hesitancy

The EV journey was never going to be smooth. But with the right steering, India can still stay on track toward a greener, cleaner future.