Statsguru: India yet to plug EV gap in the race with Asian peers

The ongoing conflict in West Asia has renewed concerns over oil supply disruptions, pushing countries to reassess how quickly they can rely on electric mobility. For India, this raises a critical question: Is its electric vehicle (EV) ecosystem — spanning adoption, infrastructure, and domestic capacity — robust enough to withstand a prolonged energy shock, especially when compared with faster-moving Asian peers?

 

India’s EV adoption remains significantly behind regional counterparts. EVs accounted for just 4.1 per cent of total passenger vehicle sales by 2025 end, far below 50 per cent in China and 37.9 per cent in Vietnam. (Chart 1) 

 

There has been strong growth in EV sales across Asian countries over the past few years, with most markets witnessing sharp expansions between 2021 and 2024. However, FY25 saw a slowdown, with India recording a contraction of 22.22 per cent. (Chart 2) 

 

Charging infrastructure remains a major constraint. India has around 84 EVs per public charger, compared to 10 in China and Vietnam, and 19.1 in Thailand. This sharp gap indicates that even if EV demand rises due to high fuel prices, the supporting infrastructure may not keep pace. (Chart 3) 

 

Policy support, however, is relatively strong. Subsidies account for about 15 per cent of EV factory prices in India, slightly higher than China’s 13 per cent.  (Chart 4) 

 

At the same time, India imposes a higher tariff on EV imports than peers — 103.8 per cent, compared to 65.8 per cent in Thailand and 51.9 per cent in Vietnam. (Chart 5) 

 

On the supply side, domestic production has grown sharply. Electric passenger vehicle output increased from 3,304 units in 2019-20 to 62,279 in 2022-23, with consistently high year-on-year growth. (Chart 6)