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EV cars are not just an invention but a solution!
In the time when fuel and combustion are leading to pollution, the use of EV-cars in India becomes an effective alternative.
With rising fuel costs and growing concern about air quality, many people now look toward cleaner transport options. Electric cars in India promise lower running costs, quieter rides, and reduced emissions on busy roads. From city commuters to large manufacturers, interest in EV cars continues to grow every year.
In this blog, we will explore how EV cars contribute to shaping the future of mobility in India.
What Are EV Cars in India?
EV cars are electric vehicles that run fully on battery power instead of petrol or diesel. They use an electric motor to move the car and a rechargeable battery pack to store energy.
An EV car works through a few key components:
- Battery Pack
- Electric Motor
- Inverter
- Charging Port
- Controller System
What is the Relevance of EV Cars in India?
The relevance of EV cars in India is more than ever because the country faces rising pollution levels and high fuel costs. Electric vehicles offer a cleaner way to travel since they do not release exhaust smoke on the road. This helps improve air quality in crowded cities.
Fuel prices keep changing, which affects daily travel expenses. EV cars run on electricity, which usually costs less than petrol or diesel for the same distance. This makes them suitable for people who drive often.
India also aims to reduce its dependence on imported fuel, for which EV cars are a good solution.
Another reason for their growing relevance is government support. Subsidies, tax benefits, and charging station projects encourage buyers to shift toward EV cars.
Current Market of Electric Cars in India
The electric car market in India is growing fast. As reported by NDTV Auto in an article published on 12 January 2026, EV sales jumped by 77% in 2025 compared to 2024. Total sales increased from 99,875 units in 2024 to 176,815 units in 2025.
This strong rise shows that more people now prefer electric cars for daily travel. Buyers look for lower running costs, cleaner air, and modern features.
With more models entering the market and charging stations expanding, electric cars are becoming a common sight in many Indian cities.
Government Policies and Incentives for EV-Cars in India
Here are the subsidies and incentives given by the government to buyers of EV cars in India:
- The government promotes EV use through the PM E-DRIVE Scheme, which is active until March 2026, with a focus on faster public charging growth. The scheme’s validity has now been extended to 31st March 2028.
- Electric two-wheelers receive battery-based subsidies of Rs. 2,500 per kWh.
- EVs attract only 5% GST, while petrol or diesel vehicles face much higher tax.
- Charging stations and equipment also carry 5% GST.
- Buyers can claim income tax deductions of up to Rs. 1.5 lakh on EV loan interest under Section 80EEB. This deduction was available only till March 2023.
- Companies that invest heavily in India can import a limited number of EV cars at 15% duty for five years.
- The government funds public charging stations across cities and highways through PM E-DRIVE.
- A battery-swapping policy supports two-wheelers and three-wheelers to cut waiting time at chargers.
What the Future Looks Like for EV Cars in India?
As per the article published by NITI Aayog in 2025, India aims to achieve a 30% share of electric vehicles (including cars) in total vehicle sales by 2030. The government will support this vision with effective policies, incentives, and infrastructure planning.
It also means that:
- More EV cars are coming to Indian roads over the next decade.
- Government targets and research forecasts suggest strong growth in sales of EV cars in India by 2030.
- According to Fortune Business Insights, India's electric-vehicle market is projected to reach about US$ 117 billion by 2032.
- This change will happen gradually as technology, infrastructure, and cost competitiveness improve over time.
Challenges Faced by EV Cars in India
Electric cars in India are growing fast, but they still face some real-world problems. If you want to buy an EV car, these are the key challenges you should be ready for:
1 Limited Public Charging Stations
Charging points are increasing, but still not available everywhere.
- Many highways and small towns lack fast chargers.
- Apartment residents may find it hard to install private chargers.
- Long trips need careful route planning.
2 Higher Upfront Price
EV cars usually cost more than petrol or diesel cars at the time of purchase.
- Batteries are expensive.
- Entry-level EV options are still limited.
- Budget buyers may hesitate because of the higher initial cost.
3 Range Anxiety
Many drivers worry about the distance covered by a car on a single charge.
- City driving is fine, but long drives need planning.
- Air-conditioning and heavy traffic can reduce range.
- New buyers often fear being stuck with a low battery.
4 Charging Takes Time
Unlike petrol filling, charging an EV is slower.
- Home charging can take several hours.
- Fast chargers are quicker but not always nearby.
- Waiting time can be inconvenient during travel.
5 Battery Life and Replacement Cost
Batteries last many years, but replacement is still costly.
- Buyers worry about resale value.
- Long-term repair costs are not fully clear yet.
- Warranty details become very important.
6 Uneven Growth Across Cities
Big cities see faster EV adoption than smaller towns.
- Metro areas have more chargers and service centres.
- Tier-2 and Tier-3 cities still need better support.
- Rural users may find EV ownership difficult today.
Role of Motor Insurance for EV Cars in India
Here are some of the benefits of car insurance for electric vehicles in India:
- Third-party car insurance is legally required for all cars in India, including electric vehicles.
- Third-party insurance protects you if your EV causes injury, death, or property damage to others.
- Comprehensive insurance covers damage to your own EV from accidents, fire, floods, theft, or vandalism.
- EV-specific parts like batteries, motors, and charging equipment can be expensive, so insurance helps reduce large repair bills.
- The battery cover is important because batteries form a major share of an EV’s total cost.
- Add-ons such as roadside assistance help if your EV runs out of charge or breaks down.
- Zero-depreciation cover can increase claim payouts during repairs.
- Insurance supports legal compliance during traffic checks and avoids penalties.
- Insurers may offer lower premiums or benefits for safe driving and low-emission vehicles.
- A valid policy improves resale value and buyer confidence at the time of resale.
A right insurer with a suitable car insurance plan will help you to protect your EV car in India properly.
Conclusion
Lastly, EV cars are the future of the motor car industry due to their sustainability and comfort. The future of EVs in India looks promising with strong policy support, better charging access, and falling battery costs.
More brands launch new models every year, which gives buyers wider choices across budgets. EV cars suit city travel because of low running expenses and smooth driving. Long-distance use still needs planning today. With steady progress in technology and public awareness, electric cars are set to become a regular part of India’s roads in the coming decade.
In order to protect your car legally and financially, you can contact customer care at Square Insurance.
FAQs
EV-cars in India run on electricity instead of petrol or diesel.
Yes, electric cars in India are gaining popularity because of rising fuel prices.
The EV cars in India usually start around Rs. 8 to 10 lakh for basic models.
Yes, EV-cars in India cost less to run than petrol cars.
Electric cars in India may not need daily charging for short trips. But it is advisable to check and charge before every trip.
India aims for electric vehicles to make up about 30% of total vehicle sales by 2030, according to NITI Aayog.
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