India’s electric transport sector received about INR 2,23,119 crore (USD 25.6 billion) in investments from 2020 to 2025. This information was shared in a report released on 25 February 2026 by the Institute for Energy Economics and Financial Analysis (IEEFA).


This amount meets only 18% of the total investment estimated to be required by 2030. India has set targets for 2030 where electric vehicles should account for:

  1. 30% of private car sales
  2. 70% of commercial vehicles
  3. 40% of buses
  4. 80% of two- and three-wheelers


Reaching these goals will require more funding in manufacturing, charging stations and related services.


Where the Money Was Used

Most of the investment went into building EV manufacturing capacity. Government subsidies and incentives were the second largest share, followed by charging infrastructure.

In manufacturing:


  1. Rs 1,59,701 crore came from companies’ own funds
  2. Rs 36,738 crore came from loans
  3. Rs 6,455 crore came from equity investments


The electric three-wheeler segment mainly depended on internal funds and some loans. The two-wheeler and four-wheeler segments had a mix of internal funds, debt and equity.


Change in Investment Focus

In 2024 and 2025, new investment announcements shifted from three-wheelers to four-wheelers. This reflects growing demand for electric passenger cars, especially in higher price categories.


Government Subsidies

Under the FAME scheme and other central and state policies, the government disbursed Rs 18,251 crore between FY2020 and FY2024 to support EV adoption.


Charging Infrastructure Needs More Investment

The number of public chargers increased from 5,151 in 2020 to 39,485 in 2025. However, investment in charging infrastructure is still low compared to what is required. It is estimated that Rs 20,600 crore will be needed for charging infrastructure by 2030. Only about 9.6% of this amount has been invested so far. India also has fewer chargers per EV compared to global standards.


High Interest Rates a Key Challenge

Commercial EV buyers currently face interest rates between 15% and 33%. These high rates reduce the cost savings benefits that EVs usually offer. Higher loan costs can slow down vehicle purchases and fleet expansion.


Large Investment Gap Remains

The report estimates that India will need around Rs 10.3 lakh crore more over the next five years to meet 2030 targets. Around 82% of the required investment is still pending.

IEEFA suggests creating a combined financing platform that includes credit guarantees, battery leasing options and co-lending arrangements. It also recommends that institutions such as SIDBI and IIFCL support different borrower segments. The report states that lowering borrowing costs and improving access to finance will be important for meeting India’s EV goals by 2030.