DRIVING ADOPTION: HOW BRAND TRUST AND SUBSIDIES IMPACT ELECTRIC VEHICLE SALES

Abstract

Abstract: The rapid transition toward sustainable mobility has positioned the Electric Vehicle (EV) sector as a core component of global and national climate agendas. In India, the penetration of EVs is expanding rapidly, driven by the interplay between financial interventions and consumer trust dynamics. This research paper evaluates the dual impact of regulatory subsidies—specifically examining the transition from the FAME frameworks to the PM E-DRIVE Scheme alongside regional state-level policies—and brand equity on consumer purchasing intentions. By leveraging an integrated mixed-methods approach that combines macroeconomic indicators, registration data from the VAHAN database, and literature synthesis, this study maps the structural determinants of EV adoption.

As of 2026, the Indian EV market has witnessed structural mainstreaming, with total electric vehicle sales accelerating to 2.6 million units in 2025, representing 9.5% of all automobile registrations. The findings indicate that while fiscal direct fiscal subsidies act as the primary catalyst for initial market consideration, long-term market velocity is heavily determined by brand trust, battery warranty perceptions, and safety track records. This article delineates the structural bottlenecks impeding scaling, identifies core market opportunities, and proposes data-driven solutions for original equipment manufacturers (OEMs) and policy formulators.

Keywords: Electric Vehicles (EVs), Brand Trust, Fiscal Subsidies, PM E-DRIVE Scheme, Economic and Political Weekly, Consumer Intention, Sustainable Mobility