EV adoption in India faces familiar roadblocks, study says

The lack of charging stations, high upfront costs and concerns about battery life remain key reasons why many Indians are hesitant to switch to electric vehicles (EVs), mirroring a global slowdown in EV sales, a study by consultant Deloitte said.

More than half of Indians would prefer internal combustion engine (ICE) and hybrid vehicles, while only 8% would prefer EVs when it is time to buy their next vehicle due to affordability concerns, the 2025 Global Automotive Consumer Study–India said.

Despite the slump in preference for EVs, interest in hybrids (21%) and battery EVs (8%) persists, with one-third of customers surveyed prioritizing fast-charging, underscoring rising expectations from EV infrastructure.

The Deloitte study said a majority of Indian customers (at 88%) are also willing to share personally identifiable information with manufacturers or third parties for features such as anti-theft tracking–significantly higher than 60% in the US.

The trend signals growing trust in data-driven, intelligent mobility solutions, with Indian customers also optimistic about technology as 82% view artificial intelligence (AI) as beneficial while prioritizing vehicle-smartphone connectivity.

Half the surveyed consumers in India, Southeast Asia, and the US drive their vehicles daily–roughly twice the number of consumers in South Korea or Japan, it said.

However, a significant number of 18-34-year-olds surveyed in those markets (among others) are at least somewhat interested in giving up traditional vehicle ownership in favor of a mobility-as-a-service (maas) model.

MaaS lets customers use apps to plan, book, and pay to get around without owning a vehicle.

“The EV movement is gaining undeniable momentum, driven by consumer interest in sustainability and long-term cost benefits. Yet, barriers such as charging infrastructure, upfront costs and battery longevity continue to influence consumers,” Rajat Mahajan, partner and automotive sector Leader, Deloitte India, said.

“The study highlights a shift in how consumers, especially in 18–34 age group, approach mobility. From embracing premium experiences to exploring maas models, their choices reflect evolving lifestyles and financial mindsets,” Mahajan said.

“In this context, original equipment makers must bridge aspiration with accessibility, delivering cutting-edge innovation that aligns with practical needs and emerging goals,” he added.

Current global trade tensions, shifting regulatory policies, and labor disputes in some markets have the potential to change the way in which manufacturers view global supply chains, manufacturing footprints, and global growth opportunities, the study said.

The report also said that the global automotive industry is undergoing tremendous change at an unprecedented pace, and at the center of this change is a consumer with rapidly evolving expectations of the mobility experience.

The report underscored that brand loyalty remains center stage as emerging manufacturers with strong value propositions threaten to disrupt the dominance of traditional players in many global markets.

In India, more than 60% consumers ranked product quality, including safety, as a top priority when choosing their next vehicle, in addition to vehicle performance, with in-car features significantly influencing brand choice, the study said.

Unlike developed markets such as Germany and Japan, where price dominates, Indian consumers place greater importance on quality and overall driving experience, the study added.

Though the sales momentum for EVs has slowed, the longer-term need to move toward zero-emission transportation remains clear, the study added.

Increasing vehicle prices continue to impact cost-conscious consumers, who are still digesting the negative effects of a prolonged period of high interest rates on their financial capacity.

Manufacturers and suppliers are also facing operational headwinds as they struggle to reduce manufacturing costs and complexity. Some recognize they cannot maintain their competitive momentum alone, signaling a new era of ‘co-opetition’ to optimize limited resources for mutual benefit while lowering their risk exposure, the study added.