During the budget session for fiscal year 2025-26, the Indian government launched a policy strategy to remove import duties on electronic vehicles and mobile phone batteries to give a sustainable mobility option by rolling out affordable EV vehicles, boost local production, phase out fossil fuel vehicles and offer cleaner fuel and a better environment to Indians. The move has propelled sales of the EV vehicles, including the two-wheelers and four-wheelers. Also, with the increase in the number of EV vehicles, the need for public EV charging stations has increased.
The Voices assesses the outcomes with key stakeholders, ground-level reporting and expert commentary.
India’s Push for Local Manufacturing
The removal of import duties on 35 EV battery parts and 28 mobile phone components was positioned as a bold move to energise India’s domestic tech and EV ecosystem. With this, the government has sent a signal to global manufacturers that India is open for business, said EV dealer Shankar Kumar from Delhi’s Connaught Place area. He added that the policy support must also address the gaping difference between the availability of public charging stations in urban and rural areas for four-wheelers and commercial vehicles.
“Since March, we’ve seen around a 20% increase in EV sales. Due to reduced cost and lower operating costs of a vehicle (lower than fossil fuel-driven vehicles), people are showing keen interest in it. The youth and millennials have evinced keen interest in the two-wheeler segment,” said Ritik Kumar, a salesperson at an EV showroom in Tilak Nagar, while talking to The Voices. He added that lower battery costs and expanding charging infrastructure are encouraging more consumers to adopt electric vehicles. With premium companies like Bajaj, TVS, and Ola spearheading the two-wheeler EV market, buyers are spoilt for choice in different price ranges.
Lower Costs, Higher Curiosity
Batteries account for up to 50% of an EV’s cost. The removal of duties on lithium-ion cells, cobalt powder and battery management systems has allowed manufacturers to explore price cuts of ₹50,000–₹1 lakh on models like the Tata Nexon EV.
Fleet buyers are paying attention too. “Commercial clients are asking about bulk purchases now that running costs can come down,” says Anil Verma, a battery dealer in Okhla Industrial Area. “But they also want clarity on GST credits and how long the policy will last,” he added.
A mobile store owner in Karol Bagh, who preferred not to be named, said cheaper imported components haven’t yet reduced consumer prices. Still, retailers expect benefits to filter through in the coming quarters.
The government has also granted a tax deduction of up to Rs 1.5 lakh under Section 80 EEB of the Income Tax Act on the interest paid on an EV loan. This clause, too, has driven the middle-income group to opt for this class of vehicle as it significantly lowers one’s annual tax liability.
More Public Charging Stations Needed:
Arihant Jain from the Patel Nagar area of Delhi, quoting the India Charging Report 2025 released by Tata EV on August 19, 2025, said that the report highlights the need for more public charging stations to meet the burgeoning demand for power.
It is pertinent to mention here that, as per the aforesaid report from 2023 to 2025, India saw a staggering four times growth in 4W
public chargers, reaching 24,000 charging stations across highways and urban centres by mid-2025. However, the report remains silent on the presence of such stations in rural areas, prompting the rural population to question, “Where will I charge my vehicle?”
A Balancing Act in Progress
Four months on, India’s EV duty cut is nudging the market forward. Showroom traffic is up, fleet interest is rising, and the policy aligns with the government’s target of 30% EV sales by 2030. The coming months will reveal whether the investors, too, exhibit the same interest as the domestic buyers are showing.
Copy Editor: Vikash Kumar Upadhyay