How Broken Is The Road For EVs In Rural India?

The adoption of electric vehicles (EVs) in India has largely been an urban phenomenon, with metropolitan areas experiencing a surge in adoption due to better infrastructure and heightened environmental awareness. However, rural India presents a complex landscape of both challenges and opportunities in shifting to electric mobility.

According to Inc42’s ‘India’s Electric Vehicle Startup Report 2025’, rural India accounts for 55% of two-wheeler sales nationwide, up 13% year-on-year (YoY). However, four-wheeler EV adoption remains a far cry. Despite government incentives, the affordability of four-wheeler EVs is a major barrier to their adoption. 

Besides not being reasonably priced for the populace in the rural parts of the country, a lack of adequate charging infrastructure puts India’s EV30@30 vision in peril. This lack of EV infra discourages potential users from opting for an EV four-wheeler.

“The adoption of electric vehicles in rural India faces several significant challenges, including high upfront costs, limited charging infrastructure, and a general lack of awareness,” Samkit Shah, cofounder of Jitendra EV, told Inc42. 

He added that the penetration of EVs in rural areas has been impacted due to unreliable electricity supply, inadequate government support, and a scarcity of maintenance services. 

Economic constraints further add to the difficulty. The high upfront cost of four-wheeler EVs poses a significant challenge in rural communities, where average incomes tend to be lower than in urban areas. 

Although schemes like the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) have offered incentives to encourage EV adoption, the initial phases of such central schemes have primarily benefited urban areas. 

However, while private EV adoption continues to be a laggard in non-urban areas, electric three-wheelers (E3W) are gradually gaining traction here, specifically in commercial segments such as fleet services, agricultural transport, and government use for last-mile mobility solutions. 

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Challenges In Developing EV Charging Infrastructure In Rural India

It is pertinent to mention that, as part of its EV30@30 initiative, the Indian government has set a target of 30% of private car sales, 70% of commercial vehicle sales, 40% of bus sales, and 80% of two-wheeler and three-wheeler sales to be electric across India by 2030.

These ambitious EV goals hinge on a robust and evenly distributed charging infrastructure. However, setting up charging stations, especially fast-charging ones, presents a significant financial challenge. 

Land acquisition, equipment installation, and grid upgrades all demand substantial investments, which can deter private players from scaling operations. This issue is compounded by patchy distribution, as most charging stations are concentrated in urban centres. 

The absence of widespread rural charging options also creates range anxiety among potential EV buyers, limiting their travel options and deterring adoption.

This uneven infrastructure coverage limits the appeal of EVs, particularly for those in less urbanised regions, who often face limited charging options. This issue is further compounded by the reliability of the existing stations. According to Inc42 data, only a small fraction of the 12,146 charging stations scattered across the country are fully operational. 

Such a wide gap only exacerbates concerns about the range and reliability of EVs, creating additional anxiety for drivers.

Additionally, inconsistent charging standards across manufacturers and regions further add to complications. Incompatible plugs and communication protocols can leave drivers stranded with depleted batteries. Standardised equipment and protocols are essential to ensure a seamless and reliable charging experience.

Speaking with Inc42, Rajat Mahajan, partner and automotive sector leader at Deloitte South Asia said the availability, speed and convenience of charging solutions — especially for two-wheelers — require significant improvement. 

Commenting on the government subsidies, Mahajan noted that the subsidy per unit has decreased as these are spread across more vehicles, potentially leading to a dip in demand. 

However, Mahajan remains optimistic, viewing these challenges as part of the natural maturation process of the industry.

The Road Ahead: Overcoming Structural & Cultural Barriers

While some see optimism surrounding EV adoption in rural India, the road ahead remains fraught with all kinds of challenges.

However, according to Mahajan, if challenges like service availability and replacement parts are effectively addressed, EV adoption in rural India could gain significant momentum.

Echoing his sentiment, Madhumita Agrawal, cofounder and CEO of Oben Electric, said that many villages now have communal charging stations, often offering free electricity, which has contributed to the increasing adoption of EV scooters in the INR 60,000 to 80,000 price range in the rural area.

Further, with the expansion of traditional OEMs into rural areas, charging networks are bound to expand. 

“Once the likes of Bajaj and others expand into the rural areas, with the service networks they have, they can certainly address any issues that arise,” said Murali Krishna Gunturu, partner at Inflexor Ventures. 

He also believes that a major revolution is waiting to happen in public transport. “In rural areas, many people rely on public transport, and I think EVs will be a game changer over the next five years for the rural transport industry. That’s something I’m very excited about,” said Gunturu.

Overall, experts believe that the rural adoption of EVs has suffered due to a lack of an affordable range of vehicles, a woefully inadequate charging infra, and inconsistent government policies. For EVs to truly take off in rural India, the focus must shift from urban-centric incentives to holistic ecosystem development.  

Meanwhile, EV startup funding decelerated to $624 Mn across 43 deals in 2024, falling from the height of $1.07 Bn and $900 Mn+ in 2022 and 2023, respectively.

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[Edited by Shishir Parasher]