India is preparing for a substantial shift towards electric mobility, with new restrictions on conventional petrol and diesel vehicles anticipated across the country. Speaking at the 66th SIAM Annual Convention in New Delhi, Tarun Kapoor, an Adviser to Prime Minister Narendra Modi, indicated that the government aims for a rapid, transformative change in India's automotive sector within the next five years.
Expanding ICE Vehicle Restrictions
Kapoor highlighted that limitations on internal combustion engine (ICE) vehicles have already begun in the Delhi-National Capital Region (NCR). He suggested that these restrictions are likely to be implemented in other regions as well, creating a much larger market for electric vehicles nationwide.
Delhi's 2026 EV policy sets clear timelines for phased electrification. From January 2027, only electric N1 goods carriers will be registered, followed by a mandate for only electric two-wheelers for new registrations from April 2028.
Tackling Heavy Vehicle Electrification
A significant challenge in India's transition away from fossil fuels lies with heavy vehicles, particularly trucks. Kapoor emphasized that reducing diesel consumption is crucial for India's energy security, as the country cannot afford sustained high diesel demand.
The government is pushing for the electric truck market to scale dramatically, moving beyond small pilot projects to achieve a hundredfold increase in volumes. Kapoor also noted the potential of large fleet users, such such as the mining and coal sectors, to drive this rapid electrification.
Boosting Domestic Manufacturing and Infrastructure
To support the EV transition, the government is reviewing taxation and other measures related to imported batteries, aiming to bolster domestic battery manufacturing and value addition within India. This initiative seeks to ensure that more components and manufacturing processes occur locally.
Charging infrastructure remains a critical bottleneck. Kapoor pointed out that many charging points installed by oil marketing companies are non-functional due to low utilization and inadequate maintenance. He stressed the need for more professional operators to ensure the reliability and operational status of charging networks.
Additionally, the government is exploring various strategies to reduce electric vehicle costs, including innovative financing models, battery swapping technologies, and expanding charging availability along national highways.
Energy Security and Global Competitiveness
The drive for electric mobility is intrinsically linked to India's energy security concerns, given its substantial reliance on imported crude oil and liquefied natural gas (LNG). Kapoor articulated a vision for India to leverage this transition to build a globally competitive automotive manufacturing ecosystem, fostering greater domestic research and development, design capabilities, component manufacturing, and overall innovation.
The ultimate objective is a fundamental transformation of the automotive landscape over the next five years, positioning India as a major global hub for manufacturing and innovation in the electric vehicle sector.