Importance of rapidly scaling
During his address at the Bharat Mobility Global Expo 2025, Minister Piyush Goyal emphasized the importance of rapidly scaling the electric mobility sector to achieve cost efficiency. He urged industry players to accelerate the transition to electric vehicles, aligning with India’s goal of becoming a 100% electric vehicle nation. Goyal also encouraged government bodies to invite global companies from countries like Germany, Japan, and Korea to establish EV manufacturing operations in India, strengthening the domestic EV ecosystem and fostering international collaboration in sustainable mobility solutions.
Union Commerce and Industry Minister Piyush Goyal has called on industry players to accelerate their transition to electric mobility, aiming to make India a 100% electric vehicle nation. Speaking at the Bharat Mobility Global Expo 2025, Goyal highlighted that scaling up in the EV sector will help companies overcome cost efficiency challenges.
“For those of you still using petrol and diesel in your production cycles, I would hope to see a faster transition to electric mobility. We are not mandating anything, but we are encouraging a quicker shift. With increased scale in electric mobility, we can overcome the cost-effectiveness barrier,” Goyal emphasized.
As the world moves rapidly towards sustainable development, India is at a pivotal moment in its journey towards a greener economy. Piyush Goyal, Minister of Commerce and Industry, has recently reinforced the Indian government’s commitment to a cleaner environment by urging industries to accelerate their transition to electric mobility. The call is seen as a powerful impetus to mobilize the automotive and energy sectors in aligning with India’s sustainability goals, significantly reducing the carbon footprint, and fostering energy independence. This article outlines the critical factors of this transition, its benefits, and how the Indian industry can drive this transformative shift.
The Case for Electric Mobility in India
Electric mobility is no longer a luxury but a necessity for India’s future. By reducing dependence on fossil fuels, electric vehicles (EVs) offer an effective way to combat air pollution and decrease greenhouse gas emissions. The adoption of electric mobility aligns with India’s National Electric Mobility Mission Plan (NEMMP) and Sustainable Development Goals (SDGs), addressing environmental, economic, and social objectives simultaneously.
Key Drivers Accelerating the Shift to Electric Vehicles
1. Environmental Imperatives: Reducing Carbon Emissions
The transport sector contributes significantly to India’s carbon emissions. The adoption of EVs can drastically lower emissions by using clean energy sources, enabling the country to achieve its climate targets under the Paris Agreement. With every electric vehicle on the road, there is a significant reduction in tailpipe emissions, improving air quality in cities.
2. Economic Independence and Reduction in Oil Imports
India relies heavily on imported oil, making it vulnerable to global market fluctuations. Transitioning to electric mobility would reduce this dependency, creating greater economic stability. Domestic production of EVs and components would not only save billions of dollars in oil imports but also support India’s economic resilience.
3. Boosting Employment and Technological Advancements
The shift to EVs offers vast opportunities in new sectors, from EV manufacturing and battery production to charging infrastructure and maintenance. This change promises to create a variety of jobs, promoting technological growth and expertise. Investments in electric mobility can fuel research and development, strengthening India’s role in global innovation in clean technology.
Government Initiatives and Policies Supporting Electric Mobility
The Indian government has introduced several initiatives to facilitate the adoption of electric vehicles:
- Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme: Launched to promote EV production, the FAME scheme provides incentives for manufacturers and buyers alike. Phase II of the scheme targets EV adoption in public transport and offers subsidies for two-wheelers, three-wheelers, and four-wheelers.
- Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC): This scheme aims to establish domestic battery manufacturing capacity, making batteries more affordable and increasing their accessibility.
- National Electric Mobility Mission Plan (NEMMP): This mission encourages faster adoption of electric mobility with a target to have 6-7 million EVs on the road by 2022. The NEMMP is aligned with India’s broader energy security and environmental goals.
These initiatives collectively reduce the cost of EV ownership and expand the EV ecosystem, encouraging more industry players to participate in this green transformation.
Overcoming Challenges in India’s EV Ecosystem
1. Charging Infrastructure: The Backbone of EV Adoption
A robust charging infrastructure is critical for large-scale EV adoption. The government has proposed policies to establish thousands of charging stations across the country, but substantial investments are still needed. Collaboration between public and private entities can accelerate the development of fast-charging networks and ensure accessible charging points in urban and rural areas alike.
Diagram: Charging Infrastructure Development Stages in India
mermaidCopy codegraph LR
A[Initial Stage] --> B[Mid-Stage: Public-Private Collaboration]
B --> C[Advanced Stage: Nationwide Fast-Charging Network]
C --> D[Final Stage: High EV Adoption & Stable Infrastructure]
2. High Upfront Costs and Limited Financing Options
EVs typically come with higher upfront costs due to battery prices, which may deter buyers. To address this, the government is working on policies to reduce GST on EVs and encourage more financing options for EV purchase. Innovations in battery technology, particularly in battery recycling and reusability, are expected to further reduce costs over time.
3. Battery Manufacturing and Recycling
Battery production is a vital component of the EV supply chain, and India aims to become a leader in battery technology. With the ACC PLI scheme incentivizing local battery manufacturing, India can reduce costs and build a self-sustaining battery industry. Recycling and repurposing batteries are equally important, as they not only reduce environmental impact but also lower the dependency on new raw materials.
Expo not only unifies the entire Mobility value chain under one umbrella it also gives each Association the flexibility and freedom to have their sub shows I’m told a number of auto companies are also planning automobile launches during this bat Mobility 2025 I’m I I’m finding that there’s a lot of aspirational India there looking for better quality of cars looking for Electric Mobility two wheelers is gradually moving almost entirely to Electric Mobility
The Role of the Industry in Fostering Electric Mobility
The industry must take proactive steps to contribute to India’s electric mobility goals. By investing in research and development, companies can innovate new technologies, improve EV efficiency, and make electric mobility more affordable. Collaboration with startups and tech companies can also accelerate advancements in EV software, battery management systems, and renewable integration for charging solutions.
Leading automotive manufacturers are already making strides by launching electric models across all segments. With greater investments, the industry can expand production capabilities, scale operations, and ensure that EVs reach diverse market segments, from urban to rural areas.
Benefits of a Rapid Transition to Electric Mobility
- Cleaner Cities: EVs significantly reduce air pollutants, resulting in cleaner, healthier cities for India’s rapidly urbanizing population.
- Economic Growth: Investment in EV infrastructure and manufacturing can boost the economy, creating new jobs across sectors.
- Energy Independence: EVs reduce the country’s reliance on imported oil, making it less susceptible to global energy market fluctuations.
- Global Competitiveness: By leading in EV manufacturing and technology, India can strengthen its position as a global technology leader.
Future Outlook: Moving Towards Sustainable Transportation
The rapid adoption of electric mobility represents a transformative shift in India’s transportation landscape. As industries respond to Piyush Goyal’s call to expedite this transition, a collaborative approach involving both the public and private sectors will be essential. Building a comprehensive EV ecosystem—with robust manufacturing, a resilient supply chain, and wide-reaching infrastructure—will be the key to achieving sustainable, long-term growth.
India’s ambition to become a global leader in electric mobility is well within reach. By capitalizing on current momentum and addressing key challenges, the industry and government can drive India towards a sustainable, energy-secure, and economically resilient future.
He also urged government bodies, including the Department for Promotion of Industry and Internal Trade (DPIIT) and industry associations, to invite global companies from Germany, Japan, and Korea to establish EV production facilities in India, fostering international partnerships to advance the country’s electric vehicle ecosystem.