India’s electric future may not begin in a car showroom. For millions, it will start on two wheels.
The electric vehicle conversation in India and across the BRICS+ bloc has largely been shaped by images of sleek electric cars leaving showrooms. That picture does not reflect how most people actually travel.
For millions of commuters, the electric transition will not begin with a car. It will begin with a two-wheeler, a shared auto-rickshaw or a public bus. Getting this distinction right is essential if EV policies are to serve ordinary commuters rather than simply showcase national ambition.
The scale of this mismatch is significant. Across the 21 economies that make up the expanded BRICS+ grouping, two-wheelers and three-wheelers account for a large share of daily passenger travel, particularly among lower- and middle-income households.
Private cars, by comparison, remain a minority mode of transport even in many of India's largest cities. Yet policy attention and subsidy structures have often given greater visibility to passenger cars, a segment that is more accessible to wealthier households.
For an auto-rickshaw driver, delivery worker or daily wage earner, the priorities are different. What matters is the upfront cost of an electric vehicle, battery life, charging access, running costs and the ability to earn a livelihood without long charging delays.
The Oil Dependence Problem
This matters economically as much as socially.
Transport is one of the largest sources of oil dependence for BRICS+ economies. Road transport alone accounts for a substantial share of their combined oil import burden.
Electrifying two-wheelers, three-wheelers and buses could therefore offer a more direct way to reduce that exposure. These are the vehicles that carry large numbers of people every day.
Private cars, by contrast, represent a comparatively small share of vehicles on the road in many member countries. Focusing too heavily on them risks directing public support towards a smaller segment of the transport market while leaving the larger mobility economy largely untouched.
The question is not whether electric cars have a role in the transition. They do. The larger question is where limited public money can have the greatest impact.
India’s Subsidy Lesson
India's experience with the FAME and PM E-DRIVE schemes offers useful lessons about both the potential and the fragility of EV adoption.
Electric two-wheeler penetration increased sharply between 2021 and the early part of this decade. Purchase incentives played an important role by making electric scooters and motorcycles more competitive with petrol-powered alternatives.
But the experience of markets such as Indonesia offers another warning. When subsidy support was withdrawn or reduced, electric two-wheeler sales fell sharply, even though the underlying technology and charging infrastructure had not changed.
That response points to a basic reality of the mass EV market: price matters enormously.
For middle- and lower-income consumers, the decision to switch from a petrol vehicle to an electric one is not simply an environmental choice. It is an economic calculation.
How much does the vehicle cost? How much can be saved on fuel? How long will the battery last? Where can it be charged? What happens if the vehicle needs an expensive repair? And, for commercial drivers, how much earning time is lost while the vehicle is being charged?
These questions will determine the speed of India's electric transition far more than the number of premium electric cars displayed in urban showrooms.
The Real Test of India’s EV Transition
India's EV transition, therefore, cannot be measured only by the number of electric cars entering the market.
Its real test will be whether electric mobility becomes affordable, reliable and practical for the millions who depend on two- and three-wheelers every day.
If the goal is to reduce oil dependence, cut transport costs and make cleaner mobility accessible to ordinary citizens, policy must follow the vehicles that people actually use.
The future of electric mobility in India may not be parked in a showroom.
It may be on two wheels.
The electric vehicle conversation in India and across the BRICS+ bloc has largely been shaped by images of sleek electric cars leaving showrooms. That picture does not reflect how most people actually travel.
For millions of commuters, the electric transition will not begin with a car. It will begin with a two-wheeler, a shared auto-rickshaw or a public bus. Getting this distinction right is essential if EV policies are to serve ordinary commuters rather than simply showcase national ambition.
The scale of this mismatch is significant. Across the 21 economies that make up the expanded BRICS+ grouping, two-wheelers and three-wheelers account for a large share of daily passenger travel, particularly among lower- and middle-income households.
Private cars, by comparison, remain a minority mode of transport even in many of India's largest cities. Yet policy attention and subsidy structures have often given greater visibility to passenger cars, a segment that is more accessible to wealthier households.
For an auto-rickshaw driver, delivery worker or daily wage earner, the priorities are different. What matters is the upfront cost of an electric vehicle, battery life, charging access, running costs and the ability to earn a livelihood without long charging delays.
The Oil Dependence Problem
This matters economically as much as socially.
Transport is one of the largest sources of oil dependence for BRICS+ economies. Road transport alone accounts for a substantial share of their combined oil import burden.
Electrifying two-wheelers, three-wheelers and buses could therefore offer a more direct way to reduce that exposure. These are the vehicles that carry large numbers of people every day.
Private cars, by contrast, represent a comparatively small share of vehicles on the road in many member countries. Focusing too heavily on them risks directing public support towards a smaller segment of the transport market while leaving the larger mobility economy largely untouched.
The question is not whether electric cars have a role in the transition. They do. The larger question is where limited public money can have the greatest impact.
India’s Subsidy Lesson
India's experience with the FAME and PM E-DRIVE schemes offers useful lessons about both the potential and the fragility of EV adoption.
Electric two-wheeler penetration increased sharply between 2021 and the early part of this decade. Purchase incentives played an important role by making electric scooters and motorcycles more competitive with petrol-powered alternatives.
But the experience of markets such as Indonesia offers another warning. When subsidy support was withdrawn or reduced, electric two-wheeler sales fell sharply, even though the underlying technology and charging infrastructure had not changed.
That response points to a basic reality of the mass EV market: price matters enormously.
For middle- and lower-income consumers, the decision to switch from a petrol vehicle to an electric one is not simply an environmental choice. It is an economic calculation.
How much does the vehicle cost? How much can be saved on fuel? How long will the battery last? Where can it be charged? What happens if the vehicle needs an expensive repair? And, for commercial drivers, how much earning time is lost while the vehicle is being charged?
These questions will determine the speed of India's electric transition far more than the number of premium electric cars displayed in urban showrooms.
The Real Test of India’s EV Transition
India's EV transition, therefore, cannot be measured only by the number of electric cars entering the market.
Its real test will be whether electric mobility becomes affordable, reliable and practical for the millions who depend on two- and three-wheelers every day.
If the goal is to reduce oil dependence, cut transport costs and make cleaner mobility accessible to ordinary citizens, policy must follow the vehicles that people actually use.
The future of electric mobility in India may not be parked in a showroom.
It may be on two wheels.
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