Electrifying the Future: Capitalizing India's Journey to 2030 EV Goals

India's electric transport sector is witnessing an influx of capital investments, yet a unified investment strategy is crucial to achieve the 2030 electric vehicle (EV) sales targets, reveals a new study by the Institute for Energy Economics and Financial Analysis (IEEFA).

The report indicates substantial financial commitments over the past five years, amounting to an impressive Rs 2.23 lakh crore. These funds were primarily directed towards manufacturing, public subsidies, and EV charging infrastructure. However, this figure represents a mere 18% of the Rs 12,50,000 crore necessary by 2030, emphasizing the need for systemic financial reforms, according to Climate Finance Analyst Subham Shrivastava.

Data highlights a prominent reliance on internal funding in the electric three-wheeler sector, which attracted the largest investment share due to its mature operations. However, the sector is now witnessing a strategic shift towards electric four-wheelers, in response to growing consumer demand, notes Saurabh Trivedi, a Sustainable Finance Specialist at IEEFA.