Indian States EV policies: How Indian states are driving the e-mobility revolution in 2023
Electric vehicles (EVs) are gaining popularity in India, as they offer a cleaner, greener, and more efficient alternative to conventional vehicles. The central government has launched several policies and schemes to support the adoption and manufacturing of EVs, such as FAME-II, PLI, and Battery Swapping.
However, the role of the states is equally crucial, as they have the authority and responsibility to implement the policies and create a conducive environment for e-mobility.
According to a report by NITI Aayog and Rocky Mountain Institute, India can save 64% of anticipated road-based mobility-related energy demand and 37% of carbon emissions by 2030 by pursuing a shared, electric, and connected mobility future.
This would result in a reduction of 156 Mtoe (million tonne of oil equivalent) in diesel and petrol consumption for that year and net savings of roughly Rs 3.9 lakh crore (approximately US$60 billion) in 2030.
To achieve this vision, many states have taken proactive steps to formulate and implement EV policies that provide various incentives and support measures for EV adoption, such as demand creation, supply-side incentives, charging infrastructure development, and awareness campaigns.
As of now, about 50% of Indian states have EV state policies. The following is a brief overview of some of the key state EV policies in India and their status in 2023:
Maharashtra: The Maharashtra EV policy 2021 aims to accelerate the adoption of battery electric vehicles (BEVs) to contribute 10% of the registration of new vehicles by 2025.
The policy offers incentives of Rs 5000/kWh for all EV categories, with a maximum subsidy of Rs 10,000 for electric two-wheelers, Rs 30,000 for electric three-wheelers, Rs 1.5 lakh for electric four-wheelers, and Rs 20 lakh for electric buses.
The policy also provides additional incentives for early adopters, scrapping of old vehicles, and delivery of a five-year battery warranty by manufacturers. Moreover, the policy mandates that all new home and workplace parking should have 20% EV charging points and that all government vehicles will be electric within the next 10 years.
As of October 2023, Maharashtra has registered over 3 lakh EVs, the highest among all states, and has installed over 1000 public charging stations across the state.
Delhi: The Delhi EV policy 2020 aims to make 25% of all new vehicle registrations electric by 2024.
The policy offers various incentives and subsidies for EV buyers, such as waiving road tax, registration fee, and parking charges, as well as providing cashback of up to Rs 30,000 for electric two-wheelers and Rs 1.5 lakh for electric four-wheelers.
The policy also provides incentives for EV aggregators, fleet operators, and e-commerce and delivery companies to switch to electric vehicles. Furthermore, the policy aims to create a network of 200 public charging and battery swapping stations in Delhi and to develop a skilled workforce for the EV sector.
As of October 2023, Delhi has registered over 1.5 lakh EVs, the second highest among all states, and has achieved 100% electrification of its public transport fleet.
Karnataka: The Karnataka EV policy 2017-18 targets to achieve 100% e-mobility in the state’s public transport fleet by 2030. The policy provides incentives for EV manufacturers, such as capital subsidy, concessional power tariff, tax exemption, and land allotment.
The policy also aims to create a network of charging stations across the state and to develop a skilled workforce for the EV sector.
As of October 2023, Karnataka has registered over 1 lakh EVs, the third highest among all states, and has attracted over Rs 10,000 crore of investment in the EV manufacturing sector.
Gujarat: The Gujarat EV policy 2021 aims to have 2 lakh EVs on the road in the next four years.
The policy offers subsidies of Rs 10,000/kWh for electric two-wheelers, Rs 50,000/kWh for electric three-wheelers, and Rs 1.5 lakh/kWh for electric four-wheelers, with a maximum subsidy of Rs 20,000, Rs 1.5 lakh, and Rs 10 lakh, respectively.
The policy also provides incentives for setting up charging stations and manufacturing units in the state.
As of October 2023, Gujarat has registered over 50,000 EVs, the fourth highest among all states, and has installed over 500 public charging stations across the state.
EV Policies of other States of India
Andhra Pradesh: The state has a comprehensive EV policy that aims to have 10 lakh EVs on the road by 2024, and to establish 100,000 charging stations by then. The state also offers full reimbursement of road tax and registration fees on EVs until 2024, and subsidies for setting up EV manufacturing units and charging stations.
Kerala: The state has an ambitious EV policy that aims to have one million EVs on the road by 2022, and 6,000 e-buses by 2025. The state also offers viability gap funding in public transport vehicle procurement and operation, toll-charge exemption, and free permits for fleet drivers and free parking for EVs. The state also plans to develop charging stations using solar and other forms of renewable energy.
Tamil Nadu: The state has a progressive EV policy that aims to attract Rs 50,000 crore of investment and create 1.5 lakh jobs in the EV sector by 2025. The state also offers reduced GST and interest-free loans for OEMs (original equipment manufacturers), and subsidies for setting up EV manufacturing units and charging stations. The state also plans to enable fuel stations to set up EV charging facilities.
Telangana: The state has a pragmatic EV policy that aims to make 80% of all new vehicle registrations electric by 2030. The state also offers capital subsidy, concessional power tariff, tax exemption, and land allotment for EV manufacturers. The state also plans to create a network of charging stations across the state and to develop a skilled workforce for the EV sector.
Uttar Pradesh: The state has a visionary EV policy that aims to have 1 million EVs on the road by 2024, and to generate 50,000 jobs in the EV sector by then. The state also offers subsidies for EV buyers, manufacturers, and charging station developers, and single window clearance for setting up EV manufacturing facilities and development of battery disposal facilities.
Assam: The state has a draft EV policy that aims to make 25% of all new vehicle registrations electric by 2026. The state also proposes to offer subsidies for EV buyers, manufacturers, and charging station developers, and to mandate the creation of charging infrastructure in new residential buildings, offices, parking lots, malls, etc.
Chandigarh: The UT has a draft EV policy that aims to make 100% of all new vehicle registrations electric by 2030. The UT also proposes to offer subsidies for EV buyers, manufacturers, and charging station developers, and to mandate the creation of charging infrastructure in new residential buildings, offices, parking lots, malls, etc.
Chhattisgarh: The state has a draft EV policy that aims to make 25% of all new vehicle registrations electric by 2026. The state also proposes to offer subsidies for EV buyers, manufacturers, and charging station developers, and to mandate the creation of charging infrastructure in new residential buildings, offices, parking lots, malls, etc.
Uttarakhand: The state has a draft EV policy that aims to make 30% of all new vehicle registrations electric by 2030. The state also proposes to offer subsidies for EV buyers, manufacturers, and charging station developers, and to mandate the creation of charging infrastructure in new residential buildings, offices, parking lots, malls, etc.
The growing interest and action on e-mobility by the states reflects the potential of EVs to transform the mobility landscape in India. As more states join the e-mobility bandwagon, India can accelerate its transition to a cleaner, greener, and more efficient transport system.