80% of EVs sold in India are domestically made; India’s EV transition could deliver one of the world’s largest transport emissions cuts

New Delhi: Achieving India’s existing national and state-level electric vehicle (EV) targets could reduce road transport CO2-equivalent emissions by 50% by midcentury (2050), according to a new global analysis by the International Council on Clean Transportation (ICCT). The findings are part of the fourth edition of Vision 2050, ICCT’s annual assessment of the global transition to zero-emission vehicles, which models the impact of current and proposed policies on vehicle sales, energy use, and emissions through 2050

The study highlights India’s unique position among emerging transport markets: while EV uptake remains at an early stage, domestic manufacturing already supplies close to 80% of the country's EV sales.

If national and state targets currently under development are fully implemented, the analysis finds that India could cut road transport CO2-equivalent emissions and liquid fuels demand in half by 2050. Such reductions would support India’s long-term net-zero goal for 2070 while reducing exposure to volatile fossil fuel imports. The report also identifies several India-specific trends that will shape the pace and impact of the country’s EV transition.

Key highlights from the report:

1. India’s domestic EV manufacturing mirrors advanced markets Nearly 80% of EVs sold in India are domestically manufactured, placing the country alongside the European Union and Japan in meeting EV demand largely through local production rather than imports.

2. Heavy-duty vehicles offer India a major next-phase climate gain India is among the few emerging economies with long-term zero-emission ambitions for heavy-duty vehicles, positioning freight electrification as a key source of future emissions reductions.

3. India has one of the largest global emissions-reduction opportunities Given the size of its transport sector, India stands out as one of the markets where EV adoption could deliver the largest absolute reductions in road transport emissions globally.

4. Policy momentum is the main driver of India’s EV transition The report finds that India’s EV outlook will be heavily shaped by policy—such as proposed fuel-efficiency norms, zero-emission targets, and state EV policies—rather than by market forces alone.

India’s EV adoption curve steepens after 2030 While current EV sales shares are modest, the analysis projects rapid acceleration in India’s EV adoption during the 2030s as potential national and state policies take effect. As one of the world’s largest and fastest-growing transport markets, India’s choices over the next decade will have global implications.

The report notes that large-scale EV adoption in India, especially across two- and three-wheelers, passenger vehicles, and eventually heavy-duty freight, could deliver one of the most significant transport emissions reductions globally, demonstrating how emerging economies can align industrial growth with climate action. In doing so, India could strengthen domestic manufacturing, improve air quality, and align transport growth with its Paris climate commitments.

“With a strong domestic EV manufacturing base and a growing suite of fuel-efficiency standards, zero-emission targets, and state EV policies, India is well-positioned to accelerate its EV transition while delivering substantial climate and air-quality benefits," said, Arijit Sen, Senior Researcher, ICCT

“India’s EV transition is not just a climate opportunity; it is an economic one. Nearly 80% domestic manufacturing shows that India already has the foundation to build its clean transport future at home. With strong supply-side regulations such as fuel-efficiency norms and zero-emission vehicle targets, this localisation potential can scale rapidly, strengthening domestic value chains, creating jobs, and delivering one of the world’s largest reductions in transport emissions," said, Amit Bhatt, India Managing Director, ICCT