Rising fuel prices could push more Indians towards electric vehicles

With fuel prices rising again and the ongoing Iran-West Asia conflict creating uncertainty around crude oil supply, India’s dependence on imported fuel is once again becoming a major concern. At the same time, Prime Minister Narendra Modi’s continued push for reducing petrol and diesel usage is bringing electric vehicles back into focus.

For a long time, EVs in India were mainly seen as an environmentally friendly option. But now, the conversation is also shifting towards saving money and reducing dependence on imported oil. Since India buys most of its crude oil from other countries, any global conflict or supply issue directly affects fuel prices here.

Many experts believe the current situation could help speed up EV adoption in India. As petrol and diesel become more expensive, electric vehicles are slowly starting to make more practical sense.

Recent numbers already show growing interest in EVs. According to VAHAN data, EV market share increased from 3.5 per cent in February to 5.1 per cent, while EV registrations rose by 68 per cent year-on-year to 22,499 units in March. Carmakers have also reported a rise in customer interest for electric vehicles in recent months.

Commenting on the situation, Mr Alekhya Datta, Director, Electricity and Renewables Division, TERI, said, “The recent global energy supply shocks (due to West Asia conflict) are a reminder that India should work towards self-reliance. Electrification of transport sector is both a strategic and a practical imperative, crucial for reducing dependence on fossil fuel imports."

Amit Bhatt, Managing Director, ICCW, said, “We welcome the Hon’ble Prime Minister’s appeal for promoting shared transport, reducing dependence on diesel and petrol, and accelerating the electrification of the transport sector."

Anurag Mehrotra, Managing Director, JSW MG Motor India, said, “We appreciate the Honourable PM’s appeal encouraging citizens to make conscious choices that boost savings and reduce FOREX outflow. The auto industry remains optimistic about a rapid shift towards EVs."

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