New Delhi, Dec 12 : With EV sales reaching 1.2 million and achieving 5 per cent market penetration in FY24, the shift toward electric mobility is rapidly gaining momentum in India, a report said on Thursday, adding that right policy support and faster decision-making can help in fostering collaborations across stakeholders.

EVs are emerging as a transformative solution, in line with India's COP26 commitment to transition to 100 per cent zero-emission vehicles by 2040.

According to the KPMG in India-CII report, infrastructure and policy are the key to accelerating EV adoption in India's $5 trillion economy vision.

'The electric vehicle revolution marks the dawn of a new era for India ' one defined by innovation, economic growth, and environmental stewardship. This is more than just a shift to zero-emission transportation; it's a systemic transformation of infrastructure, finance, technology, and mindsets,' said Raghavan Vishwanathan, Partner-Automotive, KPMG in India.

'By addressing infrastructure gaps, creating affordable pathways for consumers, and building societal trust in EVs, India can set a global benchmark for sustainable mobility, green growth, and inclusive prosperity,' he added.

The report identifies four key pillars essential to accelerating EV adoption: physical infrastructure (expanding charging networks and improving battery recycling), power infrastructure (managing demand and integrating renewable energy), economic infrastructure (ensuring affordable financing and optimized taxation), and social infrastructure (raising stakeholder awareness and promoting education).

High EV penetration in states like Karnataka, Maharashtra, Delhi, and Kerala with over 1,000 charging stations shows the importance of infrastructure. The World Bank finds infrastructure focus four times more effective than demand incentives.

Many factors such as policy support, total cost of ownership parity, startup ecosystem, and technology access are aiding the growth. In addition, India has set the ambitious target of 30 per cent penetration by 2030 as part of EV30@30 campaign.

'Right policy support and faster decision-making can help in fostering collaborations across stakeholders in the EV ecosystem including government bodies, private enterprises, and international partners which shall drive innovation and investment, requisite for development of infrastructure that keeps pace with the growing demand for EVs,' according to the report.

/IANS