TL;DR
Despite substantial investment, electricity's share in India's on-road transport energy mix is only 1%, indicating a slow transition despite rising EV sales.
Despite significant investments totaling Rs 2.23 lakh crore over the past five years in India's electric vehicle (EV) ecosystem, electricity still accounts for only 1% of the national on-road transport energy mix in 2025-26. This data highlights the substantial gap between investment and actual energy consumption by EVs compared to traditional fossil fuels.
The analysis reveals that while battery electric vehicle (BEV) penetration in new vehicle sales reached 6.8% nationally in 2025-26, and segments like three-wheeler passenger vehicles saw 35% BEV penetration, the overall impact on the country's energy consumption mix remains limited. Petrol continues to dominate at 50%, followed by diesel at 39%, and CNG at 10%. This suggests that policy frameworks might need to shift from subsidy-led models to mandatory zero-emission vehicle sales targets to accelerate the energy transition effectively.
