The transportation sector is one of the biggest contributors to greenhouse gas emissions, and as a result, there has been a growing interest in the use of electric vehicles (EVs) as a means of reducing carbon emissions. EVs are vehicles that use electric motors powered by batteries instead of internal combustion engines Electric vehicles (EVs) have the potential to transform the Indian transportation system by reducing emissions, decreasing dependence on imported fuel, and improving air quality. However, despite the government's push towards EV adoption, the penetration rate remains low due to several challenges. The paper will review the existing literature on EVs, analyze data on EV adoption, and provide an empirical analysis of the perception of customers towards EVs and the factors that influence their decision to purchase or not purchase an EV. The aim of this research paper is also to discuss the prospects and challenges of electric vehicles.