India’s electric vehicle (EV) industry is seeing increased interest, investment, and innovation. New model launches and the strengthening of favorable policies drive the shift to clean transportation. However, despite such encouraging news, India’s EV market share remains less than expected, which raises questions about what is holding the industry back.

Let’s see the current trends defining India’s EV journey and why it is essential to overcome key challenges in order to achieve true transformation.

New EVs Are on the Way, Here’s What to Expect

The EV ecosystem in India is going to see a flood of “new electric vehicles specifically designed for Indian roads and users.” The upcoming launches aim at

• Urban-friendly range
• Cost-effective pricing
• Practical yet compact design
• Improved comfort for everyday commutes

Manufacturers are catering to the increasing demand for vehicles that are eco-friendly, reliable, and Indian infrastructure-compliant. Whether passenger cars or commercial EVs, this category is expanding rapidly with domestic as well as foreign players heating up on both sides.

EV Sales Up, But Market Share Still Modest

A recent market report indicates that while “EV sales have increased significantly between 2014 and 2023,” their “market share in the overall automotive sector remains modest.” Here’s what the data tells us:

Sales of “electric two-wheelers (E2Ws)” have improved, especially in states with both central and local policy support.

Subsidy programs have boosted demand, with sales rising by over 12% for every increase in financial support. Countries with specific EV policies recorded more than 50% more two-wheeler EV sales than those without such national incentives.

Even with such a step, electric two-wheelers account for just “4% of overall two-wheeler sales as of late 2023.” Electric three-wheeler cargo versions of vehicles have gained ground in areas that provide focused state incentives and affordable solutions.

The Way Forward for India’s EV Aspirations

India will reduce carbon emissions and become a world EV manufacturing hub. To do this, the country must move beyond launches and incentives. A strong EV ecosystem is built on

• Scaling efficient charging networks.
• Facilitating local battery manufacturing.
• Making vehicle finance affordable.
• Educating consumers and driving trust.

These building blocks will assist in diverting consumer choice away from internal combustion engine (ICE) vehicles and bring India nearer to its net-zero targets. 

What’s Slowing Down EV Adoption in India

One of the largest implications of the report is that ‘subsidies alone aren’t enough.’ Consumers still experience challenges such as

• Limited public charging infrastructure.
• Poor awareness and confidence about EV performance.
• High initial costs and limited availability of finance.
• Inconsistent policy implementation at the state level.

According to experts, for India to succeed in its 2030 EV objectives—the sale of 30% electric vehicles and 80% adoption in two- and three-wheelers—there must be a “greater focus on long-term infrastructure and policy certainty.”

EV Market at a Turning Point

India’s journey towards electric mobility is reaching a turning point. The arrival of new EV models indicates a positive industry sentiment, but real progress depends on removing the systemic barriers to adoption.

India can realize its electric mobility ambition by combining product innovation with funding, policy changes, and supporting infrastructure. This will revolutionize not only how we travel but also how we create a sustainable future.

In a strategic move to bolster electric vehicle (EV) adoption and manufacturing, the Indian government has unveiled a new policy offering significant incentives to global automakers. The policy aims to attract foreign investment by reducing import duties for companies committing to local production.

Key Highlights of the Policy

Under the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI), automakers investing a minimum of ₹4,150 crore (approximately $500 million) in local manufacturing within three years can import up to 8,000 EVs annually at a reduced customs duty of 15%, down from the previous rates of 70% to 110%.

To qualify, companies must meet revenue requirements once production begins. In the fourth year, approved firms are expected to report at least ₹50 billion in revenue, increasing to ₹75 billion in the fifth year. Failure to meet these targets could result in a penalty of up to 3% on the revenue gap.

The policy also mandates that automakers achieve 25% domestic value addition (DVA) by the third year, increasing to 50% by the fifth year.

Global Automakers’ Responses

Several global automakers have expressed interest in the new policy. Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia are considering setting up manufacturing operations in India to capitalize on the incentives.

However, Tesla has indicated a preference for establishing sales outlets without committing to local production, rendering it ineligible for the benefits under the new scheme.

Vietnam-based electric vehicle manufacturer VinFast’s planned $2 billion investment in establishing an EV manufacturing facility in Tamil Nadu has failed to qualify for benefits under India’s incentive scheme. To become eligible, VinFast must make an additional investment of ₹4,150 crore.

Domestic Automakers’ Concerns

Indian automakers, including Tata Motors and Mahindra & Mahindra, have raised concerns about the reduced import duties, fearing increased competition from global players. They argue that the policy could undermine domestic manufacturers who have already invested heavily in local EV production.

India’s EV Market Outlook

Currently, EVs make up only 2.5% of India’s car market. The government aims to boost this share to 30% by 2030. The new policy is a step towards achieving this goal by encouraging global participation in the Indian EV market.

Conclusion

India’s new EV policy presents both opportunities and challenges for global and domestic automakers. While the incentives are attractive, the stringent requirements and competitive landscape necessitate careful strategic planning. As the application window opens, the automotive industry will keenly observe how these developments unfold.

India’s electric two-wheeler market is witnessing a fierce rivalry as two Japanese automotive giants – Honda and Suzuki – prepare to dominate the EV scooter space. Honda has officially launched its much-anticipated Activa e, while Suzuki showcased the upcoming e-Access at the Bharat Mobility Global Expo 2025. This marks a significant shift as both manufacturers introduce their first-ever all-electric scooters for Indian consumers.

Battery and Performance: Two Strategies, One Goal

While both scooters aim to offer clean urban mobility, they follow distinct technical philosophies.

The Honda Activa e features dual 1.5 kWh swappable lithium-ion batteries, a 6 kW electric motor, and claims a top speed of 80 kmph. Acceleration is brisk, with a 0-60 kmph time of 7.3 seconds, and the scooter offers a claimed range of 102 km. However, Honda’s swappable battery tech means the batteries can’t be charged at home — users must visit authorized Honda e:SWAP stations.

In contrast, the Suzuki e-Access runs on a 3.07 kWh LFP battery and offers a claimed IDC range of 95 km. Its 4.1 kW motor produces 15 Nm of torque, delivering a top speed of 71 kmph. Suzuki supports both AC and DC charging, with full charge times of 6 hours 42 minutes (AC) and 0–80% in just 1.2 hours via fast charging.

Features and Tech: Smart Mobility Takes Center Stage

Honda has equipped the Activa e with a 7-inch TFT display and Honda RoadSync Duo connectivity, allowing users to access navigation, call alerts, real-time tracking, music control, and more. Additional conveniences include dashboard twin pockets and a 15W Type-C charger.

The Suzuki e-Access counters with a digital TFT display, auto power cut-off after 5 minutes of inactivity, a tip-over sensor, USB charging port, and front utility storage — ensuring a balance of tech and practicality.

Pricing and Launch Timeline

Honda’s Activa e is already available in two variants:

• Standard – ₹1.17 lakh
• RoadSync Duo – ₹1.52 lakh (both prices ex-showroom Delhi)

Suzuki has confirmed that the e-Access will be launched in June 2025, with an expected starting price of ₹1.10 lakh (ex-showroom).

Conclusion: Which Scooter Is Right for You?

With Honda focusing on battery swap networks and smart tech, and Suzuki banking on charging convenience and affordability, Indian consumers are now spoiled for choice. As the country accelerates towards an electric future, the Activa e vs e-Access showdown could be a defining moment in the mainstream adoption of electric two-wheelers.

Article By
Sourabh Gupta