India's ₹2,000-crore EV charging push may fall short of 2030 target: Report

With EV sales rising rapidly, IEEFA says India's charging strategy must address more than deployment and improve the experience for users across the country

 India’s electric vehicle market is growing rapidly, but the country’s charging infrastructure may struggle to keep pace. A new analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) found that the ₹2,000-crore allocation for public EV charging under the PM E-DRIVE scheme could support less than 2 per cent of the public chargers estimated to be required by 2030.

 

The finding comes as EV sales and the number of public charging stations continue to rise. IEEFA’s September 2026 report, Improving the EV charging experience in India: Beyond charger deployment, argues that simply adding more chargers will not be enough. Reliability, affordability, home charging access, grid capacity, and ease of payment will also determine how quickly electric mobility expands in India.

  

India’s EV charging hurdle

 

The IEEFA report estimates that the ₹2,000-crore PM E-DRIVE allocation could support approximately 18,811 charging points under the policy target mix, assuming a 100 per cent subsidy for both upstream infrastructure and charger equipment.

 

That would cover less than 2 per cent of the 1.32 million public chargers needed to support the government’s 30 per cent EV adoption vision for 2030.

 

The funding challenge is also linked to the cost of connecting chargers to the electricity network. IEEFA estimates that upstream grid upgrades can account for as much as 50 per cent of the total cost of setting up a public charging station, which adds pressure on charging point operators that are still dealing with low charger utilisation.

 

The report therefore calls for grid upgrade costs to be financed separately through infrastructure or development financing, rather than leaving charging operators to absorb the entire burden.

 

EV sales and charging network expand

 

India’s annual EV sales have risen from around 50,000 vehicles in 2016 to about 2.5 million in FY 2025-26. Meanwhile, public charging stations increased more than tenfold from 5,151 in 2022 to 52,718 by July 2026.  

 

However, EV adoption remains in the single or low double digits across most vehicle segments. In July 2026, electric two-wheelers accounted for 11.2 per cent of sales, while electric cars had a 7.9 per cent share. Across all vehicle categories, EV adoption stood at 12.7 per cent.

 

This makes charging infrastructure an important part of the next phase of EV adoption because drivers need access to charging that is not only available but also reliable and affordable.

 

More chargers don't mean better access

 

IEEFA also highlights a major gap between charger deployment and actual charger availability. A 2024 IEEFA case study found that nearly 84 per cent of EV chargers examined across South, Central, West, and East Delhi were not functional.

 

The report argues that future government support should therefore be linked to performance rather than being based mainly on installation. Possible measures include:

 

• Minimum charger uptime and availability requirements
• Limits on the time taken to resolve faults
• Public disclosure of charging tariffs and availability
• Interoperability across charging networks
• Monitoring of successful charging sessions

 

IEEFA also recommends a programme to service and upgrade public chargers installed using capital subsidies.

 

The charging access problem

 

For EV users, the problem extends beyond whether a charger exists. Different charging networks often require separate apps and wallets, which can make public charging cumbersome.

 

Although charging hardware and software protocols have become more standardised, IEEFA says gaps remain in how users access chargers and make payments. It recommends moving towards a unified payment system across charging networks.

 

Home charging is another challenge, particularly for residents of high-rise and multi-household buildings. While updated Model Building Bylaws recommend that new residential and commercial buildings have at least 20 per cent of parking spaces EV-ready, these provisions remain guidelines rather than enforceable mandates.

 

The report suggests considering a “right to charge” for residents with designated parking spaces, while still requiring compliance with safety and technical standards.

 

IEEFA calls for lower charging costs

 

Public charging can also make EV ownership more expensive for users who cannot charge at home. Public EV charging currently attracts 18 per cent GST, and IEEFA recommends reducing it to 5 per cent, in line with the GST rate applied to EV purchases.

 

The report also recommends reducing GST on battery-swapping services from 18 per cent to 5 per cent and introducing well-structured time-of-use tariffs. Such tariffs could encourage users to charge during off-peak or renewable-rich hours, which would reduce pressure on the grid and make better use of clean electricity.

 

Moving beyond charger numbers

 

IEEFA’s central argument is that India’s next stage of EV infrastructure development cannot focus solely on the number of chargers installed.

 

The report calls for simultaneous action on convenience, cost, and ecosystem readiness, including reliable public chargers, easier payments, better home-charging access, lower public charging costs, grid-readiness planning, battery swapping, and time-of-use tariffs.