Impact of Electric Vehicles on Conventional Vehicles in India

India’s automotive industry is undergoing a fundamental transformation driven by the rapid emergence of electric vehicles (EVs). The growing penetration of EVs is increasingly influencing the demand, production, and strategic orientation of conventional internal combustion engine (ICE) vehicles. This study examines the impact of electric vehicles on conventional vehicles in India by analysing adoption trends, segment-wise displacement, economic implications, environmental outcomes, and the role of government policy interventions. Using secondary data from industry reports, policy documents, and academic literature, the study observes that EV penetration reached approximately 7.8% by FY2025, with significant disruption in the two-wheeler and three-wheeler segments. The transition is being supported by incentives, lower operating costs, and emerging charging networks, while it is constrained by infrastructure gaps, battery supply chain dependence, and uncertainty in subsidy continuity. Overall, the findings suggest that EVs are not fully replacing conventional vehicles at present, but they are steadily reshaping market dynamics, competitive strategies, and consumer preferences. With continued policy support and infrastructure expansion, EVs are projected to account for nearly 20–30% of total vehicle sales by 2030, indicating a gradual but decisive shift in India’s mobility ecosystem.