IESA to govt: Accelerate battery incentives, smart grid infra, last-mile mobility for EV adoption

New Delhi: India Energy Storage Alliance (IESA) and sectoral leaders have urged the government to accelerate battery incentives, smart grid development, and last-mile mobility to speed up electric vehicle adoption.

The IESA, in a statement on World EV Day, said that to sustain India's rapid EV adoption and unlock its next phase of growth, smart-grid infrastructure and expanded battery incentives are critical enablers.

India's electric mobility sector is gathering unprecedented momentum, with July 2026 recording an all-time high of 3,27,901 EV sales, a 66 per cent jump over the previous year.


Read more: India's C&I energy storage market to expand to 22-31 GWh by 2032: IESA

According to FADA, nearly one in every eight vehicles sold last month was electric. With over 24.5 lakh EVs sold in FY2026 and public charging stations surpassing 27,000 nationwide, India's EV transformation is well underway, powered by both consumer demand and supportive policies.

IESA Managing Director Vinayak Walimbe said that the proposed incentive scheme for domestic battery components is a visionary step towards nurturing upstream capabilities like cathode, anode, and separator manufacturing.

The government must accelerate this momentum by supporting R&D collaboration, strategic mineral development, and workforce skill-building, he added.

Read more: India's EV battery demand to grow 10 times to 200 GWh by 2032: IESA

While battery manufacturing incentives are vital, sector experts underline that success will ultimately depend on building a smart, future-ready grid capable of supporting mass electrification.

Seamless integration of advanced batteries will require significant upgrades to India's digital energy infrastructure.

Kumar M, Founder & CEO, Smart Grid Analytics, said that it is vital that our grid evolves alongside our ambitions, especially as electric vehicles become central to our decarbonisation strategy.

The next frontier is not just renewable power generation, but a digital, AI-driven grid that can seamlessly integrate solar, wind, storage, and EVs at scale.

He urged the government to prioritise investments in digital infrastructure, automation, and real-time intelligence.

India's EV surge is also being propelled by grassroots innovation and entrepreneurial drive in the last-mile and fleet segments.

Last-mile delivery operators, logistics startups, and fleet entrepreneurs are now central to mainstreaming electric mobility across Indian cities.

Sandeep Mukherjee, the CEO of BLive, said, "To truly accelerate EV adoption in India, we must recognise that the real change-makers are our riders and fleet operators driving last-mile delivery across cities."

He suggested that the government push policies that empower these entrepreneurs and promote innovative ownership and fleet models.

With EV adoption rising, the industry is also turning its attention to battery material security and the need for a robust circular economy.

Leaders are pressing for policy action to scale up recycling and resource management, ensuring self-reliance in critical minerals.

Akhilesh Bagaria, Co-Founder, NavPrakriti, suggested strengthening policies and incentives for battery recycling and second-life applications, ensuring that every spent battery becomes a resource for new growth.