Electric Vehicle Transition: Shaping Sustainable Urban Futures

In response to global climate change and local environmental concerns, nations worldwide are intensifying efforts to reduce greenhouse gas emissions and improve air quality. This push is particularly urgent in emerging economies of the Global South, where rapid urbanization and increased motorization have led to severe air pollution and growing energy demands. Urban areas, responsible for over 70 per cent of energy-related CO2 emissions, are at the heart of both the problem and the solution. To address these emissions, the electrification of transportation is increasingly recognized as a key innovation in reshaping urban mobility.

Electric vehicles (EVs) are central to this transition, offering a multitude of benefits for Indian cities: reduced GHG emissions, improved air quality, and decreased reliance on fossil fuels, which directly addresses critical energy security issues. Beyond environmental advantages, EV adoption can spur economic growth by creating jobs in sectors such as green energy and infrastructure development, including EV manufacturing and charging infrastructure.

The challenge of EV integration

Transitioning to EVs, however, is not as simple as replacing one type of vehicle with another. This process is complex, as the transportation sector is part of a broader socio-technical system that encompasses vehicles, infrastructure, consumer behaviour, government regulations, and business interests. Addressing these interconnected elements requires a holistic approach that considers the full range of obstacles to change.

A city-level analysis by The Energy and Resources Institute (TERI) revealed that the dominance of internal combustion engine vehicles (ICEVs) is deeply embedded in urban policies, consumer behaviour, and existing infrastructure which significantly hampers the widespread adoption of EVs. Key obstacles, such as the convenience of traditional fuel stations, high upfront costs of EVs, and insufficient charging infrastructure, reinforce a "lock-in" effect, keeping cities reliant on conventional vehicles. While momentum is building for EVs, a real breakthrough will occur when this entrenched regime is dismantled, allowing EVs to transition from niche markets to mainstream adoption.

Role of innovation, policy, and partnerships

While national-level incentives like subsidies and tax breaks help offset the high costs of EVs, real progress often happens at the city level. Indian cities, like many globally, require a multi-faceted approach that includes innovation, enabling policies, and partnerships to mainstream EV adoption.

Innovation serves as a catalyst in this effort. By advancing technologies such as faster-charging batteries, wireless charging, and smart grid integration, innovation can overcome key barriers like limited charging infrastructure and range anxiety. Continuous innovation is vital, as without it, the EV market risks stagnation.

Enabling policies complement innovation. City-level policies can mandate the integration of charging infrastructure into local development plans, ensuring that charging stations are widely available in public spaces, institutional areas, and residential neighbourhoods. Other enabling policies could include financial incentives for EV buyers and implementing low-emission zones to encourage cleaner transportation options.

Cities like Oslo have successfully leveraged innovations such as battery swapping and wireless charging, combining them with policy measures like free parking and toll exemptions for EVs, resulting in over 50 per cent of new car sales being electric. Amsterdam’s demand-driven approach to charging infrastructure, where residents can request charging stations, has also significantly boosted EV adoption.

Partnerships play a vital role in advancing the transition to electric vehicles (EVs) by enabling the pooling of resources, expertise, and investments. Strong collaboration among governments, automakers, technology companies, and energy providers is crucial to establishing the necessary infrastructure and technology for widespread EV adoption. This involves the development of comprehensive charging networks, the creation of user-friendly EV applications, and the fostering of innovations that enhance the affordability and accessibility of EVs for consumers. A notable example of strong collaboration was Delhi Government’s policy think tank, Dialogue and Development Commission (DDC) that had emerged as a key player in shaping EV policy. This model also underscores the strong need for dedicated agencies that can bridge government, think tanks, and civil society to promote innovative policies and programmes.

Future of urban mobility

The adoption of electric vehicles (EVs) is laying the foundation for smart and sustainable urban mobility. Beyond providing cleaner transportation, EVs will integrate with connected systems and advanced infrastructure, revolutionizing how we move. As they become more prevalent, EVs could play a crucial role in stabilizing power grids and supporting the broader adoption of renewable energy. This electrification of transport also paves the way for future technologies like autonomous vehicles, further reshaping our cities. The future of urban mobility is electric, and now is the time for cities to lead the charge.

About Rhea Srivastava: Rhea Srivastava is an Associate Fellow in the Transport and Urban Governance Division at The Energy and Resources Institute (TERI). As a researcher and policy analyst, she brings extensive experience in evidence-based policy research, strategic planning, and advocacy for urban climate action. At TERI, she leads project portfolios focussing on urban climate resilience, decarbonization, and participatory planning. Rhea holds a master’s degree in Urban Environment, Sustainability, and Climate Change from Erasmus University Rotterdam, Netherlands, and a bachelor’s degree in Architecture from Delhi, India.