The global shift towards sustainability has made electric vehicles (EVs) a priority for many nations, and India is no exception. Although India has been slower to embrace EVs compared to nations like the US, China, Japan, and several European countries, the sector has witnessed remarkable growth in recent years. The electric vehicle (EV) revolution in India has gained tremendous momentum over the past few years, driven by a pressing need for sustainable transportation solutions and bolstered by government initiatives like the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) schemes and other state-specific electric vehicle policies. Consequently, numerous global EV companies are eyeing opportunities in India. Tesla, for instance, intends to establish showrooms in Mumbai and Delhi, with further expansion contingent on favourable tariffs and policies. Startups, with their innovative approaches and agility, are playing a pivotal role in transforming the Indian EV landscape, particularly in the two-wheeler and four-wheeler segments.
According to a report by IBEF, India has set ambitious goals to transform its electric vehicle (EV) landscape by 2030, aiming for 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two-wheelers and three-wheelers to be EVs. By 2030, 80 million electric vehicles are expected to ply on the Indian roads. A key aspect of this vision is achieving full domestic EV production under the ‘Make in India’ initiative, bolstering local manufacturing and reducing reliance on imports. While the sector remains in its nascent stages, its growth trajectory is undeniable. According to Frost & Sullivan analysis, The Indian EV market is projected to grow with a CAGR of 34.45% from 2023 to 2030. Such rapid expansion underscores India’s potential to emerge as a global EV powerhouse.
This growth is fuelled by urbanization, rising environmental consciousness, and advancements in battery technology. Several startups are leading the charge in India’s EV ecosystem. Ola Electric has emerged as a trailblazer, aiming to create an extensive electric two-wheeler portfolio and expand charging networks. Ather Energy is renowned for its feature-rich electric scooters and smart dashboard technology. In the micro-mobility space, Yulu offers electric bikes for last-mile connectivity, transforming e-commerce and quick commerce. For instance, Zomato partnered with BLive for its ‘EV100’ initiative aims to achieve 100% electric vehicle deliveries by 2033. For example, in 2025, Swiggy announced that it aims to achieve 100% electric vehicle delivery fleet by 2030. While companies achieve sustainability through such initiatives, it is also expected to increase the demand for electric two-wheelers and three-wheelers.
The two-wheeler EV market alone is thriving, as these vehicles offer affordability, efficiency, and practicality for urban commuters. Leading startups like Ola Electric, Ather Energy, and Revolt Motors are innovating to deliver electric scooters and motorcycles that cater to this demand. Products like the Ola S1 and Ather 450X have gained significant traction, setting benchmarks in the market. Established companies such as TVS, Bajaj, Hero, and Suzuki are also actively participating in building the Indian electric two-wheeler and three-wheeler ecosystem.
The electric three-wheeler sector’s growth in India is driven by innovative startups using technological advancements to achieve last-mile logistics. Euler Motors, a startup based in Delhi offers a 13-kWh battery offering a 170 km range and a 688 kg capacity to meet the urban logistics demands. Similarly, Altigreen is a Bengaluru based startup, which offers an 11-kWh delivering a 151 km range and a 550 kg capacity with its ‘neEV series’.
Startups are focused on adhering to the safety certifications to meetIndia’s stringent regulations while building trust among users. Majority of these startups are leveraging the government’s subsidies such as FAME and PM e-drive to reduce costs and catalyse EV adoption. The electric three-wheeler industry aims to resolve localized challenges, like last-mile connectivity, bad road conditions, and multiple payloads while ensuring comfort, convenience, and economies of scale.
Despite the promising growth, the EV sector faces challenges such as high upfront costs, limited charging infrastructure, and consumer concerns about range anxiety. Recognizing these hurdles, EV startups are addressing them with groundbreaking innovations. Companies like Statiq, Battery Smart, and ChargeGrid are developing robust charging networks, ensuring accessibility and convenience for EV users. Startups are also exploring battery-swapping technologies to reduce downtime and increase operational efficiency.
Furthermore, the government’s push for indigenization and the production-linked incentive (PLI) schemes encourage startups to localize manufacturing and reduce dependency on imports. This not only strengthens the supply chain but also creates employment opportunities and boosts the economy.
The Indian electric vehicle ecosystem is undergoing transformation through the combination of technological innovation, supportive government policies, and increasing consumer acceptance. The development in both electric two-wheeler and three-wheeler segments is not only reducing carbon footprints, offering last-mile connectivity, and creating employment but also building the future of the Indian mobility.
By: Bhavesh Prasad, Research Analyst, Growth Opportunity Analytics, Frost & Sullivan
