The thinktank of the Indian government, NITI Aayog , has released two new reports outlining the state of and potential for India’s EV future.
Two new reports were unveiled at a ceremony in New Dehli, titled “Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles in India”, as well as the first edition of the India Electric Mobility Index (IEMI).
The “Unlocking a 200 billion dollar opportunity” report reveals that India is looking to reach a 30% market share for EVs by 2030, although at present it is far from the needed progress to hit this target, with only 7.4% of 2024 vehicle sales being EVs. In total, 2.08 million EVs were sold in India last year – a major increase from 2024’s sales number of 50,000- with total EV stock across India now sitting at 5.45 million as of 2024. Total EV stock in India made up about 9% of global EV stock last year, with EV sales in India accounting for around 11% of global EV sales in 2024. Much of India’s EV progress has come from the sale of electric two and three wheeler vehicles, which sold 1.9 million units in India last year.
As such, the document recommends that the Indian government take a number of actions to encourage EV uptake, including laying out a clear policy with target timelines for encouraging zero emission vehicle (ZEV) adoption, making a progressively more stringent plan for mandating EV production and disincentivising ICE vehicle production, and establishing an academia-industry-government partnership for accelerating research on new battery chemistries.
Finance issues were also identified as a key barrier to uptake at present, with the government recommending that priority lending schemes be established for e-trucks and e-buses, as well as incentives like toll exemptions or discounts for E-trucks and e-buses, and the creation of a blended finance mechanism to reduce cost of capital for e-trucks and e-buses.
Furthermore, the IEMI report notes that as of 1 June this year, 29 Indian states and union territories have implemented EV legislation, with four more having draft policies under consideration. As of October last year, India had 25,000 public EV charging stations across the nation, with the Karnataka region leading in installations, followed by Maharashtra and Delhi. However, the report also notes that fast-charging options necessary for long-haul operations and commercial fleets are currently limited.
