EV Progress and Challenges in India

EVs: Imperative for India

Electric vehicles have emerged as a promising agent of change to achieve net-zero targets. The rate of growth in India is encouraging, with a rise in the 2-W adoption rate of 5.97% in 2024-25, the country is ready for raid expansion and high EV adoption, further to 30% by 2030 (national target). as per S&P Global Mobility report India's passenger EV production has significant increase of more than 20% to about 125,500 units.

The Government of India's schemes, such as FAME-1 and FAME-II, Production Linked Incentives (PLI), are encouraging industries to make indigenous EV parts and advanced tech and bringing in more investment. Moreover, in March 2024, they made a pretty significant move by dropping import taxes on pricier EVs if the companies agree to invest in local manufacturing. The recent Budget 2025 also incentivises companies manufacturing batteries in the country. All these efforts seem to be setting the stage for a big jump in EV sales in India next year.

Regional Variation in EV Adoption: A Key Challenge

While EV holds significant potential, the rate of adoption varies across the states. Supportive policies are instrumental for improving people's participation. States such as Uttar Pradesh have shown tremendous growth in EV adoption (18.47%).

Some of the key observations for the progress of EV in the state include:

1. The state is reported to be one of the most proactive states, with citizens actively participating and benefiting through government schemes such as the FAME ( Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. 

2. The government's support in the form of the development of 207 charging infrastructure in 9 cities has further motivated EV consumers, especially E-rickshaws (3-Wheeler) (JMK Research Report 2025). 

3. Further state-level policies, such as the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022, have further helped to facilitate buyers for EVS in the state. 

4. The state provides a Land Conversion Fee/Subsidy for mega anchor and ultra mega battery plants as 25% of the cost of land (NITI Aayog portal). 

5. Other incentives such as complete SGST Reimbursement, Stamp duty exemption and Electricity duty exemption provide a support ecosystem to the state.

In southern India, states such as Maharashtra (12.11%) and Karnataka (8.44%) are some other leading states with EV adoption higher than the national average adoption.

There are gaps in the adoption of EVS in states such as Chhattisgarh, 2.31%, West Bengal, 2.58%, Haryana, 2.03% and Andhra Pradesh, 2.71%. Supportive policies should be in place along with supportive infrastructure and awareness generation campaigns in these states to promote greater use of EVS in these regions.

Recommendations 

The establishment of regional EV policies will go a long way to motivate buyers and encourage manufacturers to establish EV and their various components, such as batteries and charging infrastructure manufacturing capabilities. 

Considering the strengths of states such as Chhattisgarh has a unique advantage with its power surplus and rich mineral resources. The state offers special incentives under the existing Industrial Policy (2014-19) for companies setting up Li-ion battery manufacturing units, specifically those willing to source raw materials like tin concentrates and other minerals available in the state. This could include subsidies on land, power, and capital investment. The state can promote battery manufacturing units and attract Ancillary Industries (e.g., motors, controllers, charging infrastructure) by highlighting the availability of reliable and affordable power. The state should utilize the Chhattisgarh InfoTech & Biotech Promotion Society (CHIPS) IT network to create awareness about EVs, provide information on charging locations, and facilitate online services related to EV ownership (e.g., registration, permits).

Integrate EV awareness into the existing science popularization programs for rural students, showcasing EVs as a sustainable technology. The technology village program could feature EV technology and benefits. Promote the use of EVs within the state's eco-villages, showcasing them as a key component of sustainable living and potentially offering incentives for EV adoption in these communities.. The public can lead by example by rapidly transitioning all state government vehicles, including those used by state-owned power utilities, to electric vehicles.

States should explore regional strengths and provide solutions through regional interventions. The state such as West Bengal's strengths lie in its strategic location, significant agricultural output, and increasing renewable energy capacity. The state can capitalize on the lower operating costs in Kolkata and the state's strategic location for Southeast Asian markets to attract investment in EV manufacturing, particularly for two-wheelers, three-wheelers, and potentially electric light commercial vehicles that can support agricultural logistics. Given West Bengal's position as a major producer of rice and fish, incentivise the development and adoption of electric vehicles for transporting agricultural produce, reducing transportation costs and emissions in the agricultural sector. This could involve subsidies or special loan schemes for farmers and agricultural businesses. 

The state can encourage homeowners and businesses to install rooftop solar panels with net metering to power their EVs, reducing reliance on the grid and promoting self-sufficiency. The state can explore opportunities to integrate EVs into the supply chains and operations of the state's growing biotechnology sector and other industries. Gradually transitioning the public bus fleet in Kolkata and other major cities to electric buses can further promote EVS in the state. 

Overall, all states can boost EVS adoption through fostering collaboration between government agencies, research institutions, industry players, and startups in the EV sector. It should promote organised workshops and conferences to share knowledge and best practices.

By strategically leveraging their unique strengths and implementing targeted policies, all states can significantly contribute to accelerating the adoption of electric vehicles and contribute to a cleaner and more sustainable transportation future.

Reference

https://jmkresearch.com/uttar-pradesh-leading-the-ev-transition-in-india/

https://e-amrit.niti.gov.in/state-level-policies