According to a recent study, Delhi, Haryana, UP, and Maharashtra have the most comprehensive EV policies in India. These include details about specific budget allocations, charging infrastructure, etc. States of Tamil Nadu, Andhra Pradesh, and Haryana have strong supply-side incentives supporting manufacturing in these states, whereas Delhi, Bihar, Chandigarh, Maharashtra, Haryana, Rajasthan, etc. have strong demand-side incentives. Nine states in India have mandated the creation of charging stations in new residential and office buildings, malls, etc.
States are still lagging behind their specified targets with the electrification of public transport still behind the desired levels. Delhi has reached just over 7% of penetration while this rate is just 2% in Tamil Nadu. TN also has no e-buses on the ground yet while Kerala only has over 50 e-buses against tall claims of over 6000 buses by 2025 and Delhi has only around 3K charging stations against 30K estimated by 2024. The pace of electrification has been quite slow both in public and private vehicles. Better regulations and monitoring mechanisms need to be implemented to check the wide difference between targets and results as now is the time to tap the potential of this booming opportunity. Increasing climate concerns, rising fuel costs, and poor air quality are strong tailwinds for fast EV adoption.
Though the government is providing tax credits, subsidies, and infrastructure development support, there is still room for improvement. Of the Indian electric vehicle total sales, the two-wheeler segment accounted for more than 60%. India is already the largest producer of two-wheelers in the world, but with surging fuel prices and global emission levels it is also emerging as a significant player in the e-scooter market as well. Government support in the form of low GST on e-scooters, road tax discount, and subsidies are other supporting factors as well. Easy financing and low running, operating, as well as initial investment costs, are other factors. India is expected to become the largest electric vehicle market in the world given its rising population, increasing consumerism, growing income base, and urbanization.
