Barriers to Electric Vehicle Adoption in India: A Comparative Review and Future Growth Prospects

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Saurabh Dhankhar, Sonu Pateer, Vikram Sandhu, Hansdeep Kaur

Abstract

India’s transportation sector, which heavily relies on fossil fuels, contributes significantly to air pollution and greenhouse gas emissions. The adoption of electric vehicles (EVs) is seen as a critical solution to mitigate these environmental impacts. This paper explores the current state of EV adoption in India, analyzing key barriers and opportunities for growth. Despite government initiatives such as the National Electric Mobility Mission Plan (NEMMP) and the FAME schemes, EV adoption remains slow, comprising less than 1% of the total vehicle market. The primary barriers include high upfront costs, limited charging infrastructure, range anxiety, and lack of standardized charging ports. This paper also compares EVs with traditional internal combustion engine (ICE) vehicles, highlighting EVs’ advantages in terms of environmental impact and long-term cost savings. However, ICE vehicles remain dominant due to their lower purchase price and well-established refuelling infrastructure. The review categorizes major barriers into physical, technical, financial, and policy-related challenges, while also identifying opportunities for growth, such as improvements in battery technology, expansion of charging infrastructure, and emerging business models. With focused efforts to overcome these challenges, India has the potential to lead in electric mobility and contribute to global climate goals.

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How to Cite
Saurabh Dhankhar, Sonu Pateer, Vikram Sandhu, Hansdeep Kaur. (2024). Barriers to Electric Vehicle Adoption in India: A Comparative Review and Future Growth Prospects. European Economic Letters (EEL), 14(3), 2007–2015. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/1972
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