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India’s electric transport sector has attracted significant capital over the past five years, but a coordinated investment framework is essential to meet the country’s 2030 electrification targets, according to a new report by the Institute for Energy Economics and Financial Analysis.
The report, Capital Flows in India’s Electric Transport Sector, states that India aims for electric vehicles to account for 30% of private car sales, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers by 2030.
Between 2020 and 2025, approximately ₹2.23 lakh crore was invested across key areas of the electric transport ecosystem, including manufacturing capacity, public subsidies and incentives, and EV charging infrastructure. However, this represents only about 18% of the estimated ₹12.5 lakh crore required to achieve the 2030 targets.
Report co-author Subham Shrivastava noted that mobilising the remaining ₹10.2 lakh crore will require systemic financing reforms and stronger capital mobilisation strategies.
The analysis found that internal accruals formed the largest portion of EV manufacturing investment at ₹1.59 lakh crore, followed by debt financing of over ₹36,000 crore and equity investments exceeding ₹6,400 crore. Investment patterns varied significantly across vehicle segments, reflecting differences in market maturity and capital requirements.
Electric three-wheelers attracted the largest share of investments—about 78%—between 2020 and 2025, driven by their commercial-scale operations and fragmented OEM base, said report co-author Saurabh Trivedi. However, recent announcements in 2024 and 2025 indicate growing investor focus on electric four-wheelers amid rising demand for electric cars.
The report emphasises that accelerated and coordinated financing efforts will be crucial for India to achieve its long-term electric mobility transition goals.
