Automakers say PM’s EV push can help grow penetration

Industry calls affordable mass-market EVs crucial for wider electric mobility adoption | Photo Credit: ANUSHREE FADNAVIS

Automobile manufacturers have welcomed Prime Minister Narendra Modi’s renewed push for electric vehicles (EVs), saying the transition to cleaner mobility is critical not only for sustainability but also for strengthening India’s energy security by cutting dependence on costly crude oil imports.

Industry executives said the Prime Minister’s appeal to citizens to reduce petrol and diesel consumption, use public transport, carpool and adopt EVs could accelerate consumer awareness and support the sector’s long-term growth plans centred around localisation and innovation.

‘More optimistic’

Anurag Mehrotra, Managing Director of JSW MG Motor India, told businessline that the Prime Minister’s message could encourage consumers to make more conscious mobility choices that help reduce fuel expenses as well as India’s foreign exchange outgo on oil imports.

“The auto industry remains optimistic about a rapid shift towards EVs, a technology that is cost-effective for the consumer, supports India’s sustainability goals, and helps reduce crude oil imports. As the ecosystem continues to evolve, charging infrastructure will also expand, making EV journeys more seamless,” he said.

Rahul Bharti, Senior Executive Officer at Maruti Suzuki India, said the company strongly supports the Prime Minister’s emphasis on deploying multiple technologies to reduce oil imports.

“We are making India a global hub for EV manufacturing with e-Vitara sales, both in India and export to 100-plus countries. We will go beyond and showcase our next EV model at the Bharat Mobility Show,” Bharti told businessline.

During a recent speech in Hyderabad, Prime Minister Narendra Modi stressed the need for austerity measures amid the ongoing crisis in West Asia. He urged citizens to reduce fuel consumption, use metro services more frequently, adopt carpooling and increase EV usage. Modi also ordered a 50 per cent reduction in the number of vehicles in his official security convoy.

The Centre has rolled out several policies and schemes over the past few years to accelerate EV adoption. Among them is the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, launched in 2024 with a budgetary outlay of ₹10,900 crore to support the adoption of electric two-wheelers, three-wheelers, buses, ambulances and trucks.

Earlier this week, the government also said EV charging proposals worth ₹503.86 crore had been approved for the installation of 4,874 charging stations across States and Central Public Sector Enterprises. The Centre has set a target of achieving 30 per cent EV penetration in total vehicle sales by 2030.

Industry players, however, said the biggest growth opportunity lies in the mass-market passenger vehicle segment priced below ₹12 lakh, which accounts for nearly 65 per cent of overall passenger vehicle sales but continues to see relatively low EV penetration because of limited affordable options.

Tata Motors said its strategy is focused on unlocking this segment by expanding the value proposition of its EV portfolio, which starts at around ₹8 lakh, while addressing adoption barriers and making electric mobility more mainstream.

“Tata Motors is fully aligned with this progressive national priority and remains committed to accelerating EV adoption through continued innovation, localisation and the development of accessible, future-ready mobility solutions that also contribute to India’s net-zero and air quality goals,” a company spokesperson said.

According to Alekhya Datta, Director, Electricity and Renewables Division at The Energy and Resources Institute, the recent global energy supply disruptions linked to the West Asia conflict underline the importance of reducing India’s dependence on imported fossil fuels.

“Electrification of the transport sector is both a strategic and a practical imperative, crucial for reducing dependence on fossil fuel imports. Studies suggest that 30 per cent EV penetration by 2030 could save $60 billion annually in oil imports. This EV growth must be supported by smarter and cleaner power systems,” he said.

Published on May 15, 2026