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EV Policies in India

Electric vehicle industry in India: Growth targets

The Indian automotive industry is the fifth largest in the world and is slated to be the third largest by 2030. Catering to a vast domestic market, reliance on the conventional modes of fuel intensive mobility will not be sustainable. In an effort to address this, federal policymakers are developing a mobility option that is “Shared, Connected, and Electric” and have projected an ambitious target of achieving 100 percent electrification by 2030.



Electric Vehicle Policy in Indian States
State Key policy targets

Maharashtra Electric Vehicle Policy, 2021

·       Issued in July, 2021. Valid till March 31, 2025

·       Budget outlay of INR 9.3 billion (US$124.97 million).

·       Achieve 10% share of EVs in all new vehicle registrations by 2025.

·       Attain 25% electrification of public transportation and last mile delivery vehicle in five targeted urban agglomerations of Greater Mumbai, Pune, Nashik, Nagpur and Aurangabad by 2025.

·       Several purchase incentives across all segments of EVs, including e-buses.

·       Incentives for battery recycling.

·       Set up at least one Gigafactory for manufacturing of Advanced Chemistry Cell (ACC) batteries in the state.

·       Establish charging infrastructure across the state as well as connecting highways. Incentives for setting up charging stations.


Odisha Electric Vehicle Policy, 2021


·       Issued in August, 2021. Valid for five years

·       Achieve adoption of 20% EVs in all vehicle registrations in the state by 2025. The focus segments are two-wheelers, three-wheelers, four-wheelers, and electric buses.

·       Waivers on road tax and registration fees during policy period.

·       Incentives for EV and component manufacturing, including batteries.

·       Additional incentives for setting up both public and private charging infrastructure.

·       Additional sops for Lithium Ion battery manufacturing.


Assam Electric Vehicle Policy, 2021


·       Issued in September, 2021. Valid for five years.

·       Achieve 25% penetration of EVs in the total number of vehicle registrations in Assam.

·       Support deployment of 200,000 EVs over the next five years. The segment wise breakup of this target is:

o   Two-wheeler EVs – 100,000 units;

o   Three-wheeler EVs – 75,000 units; and

o   Four-wheeler EVs – 25,000 units.

·       Offer incentives for EV and component manufacturing.

·       Focus on recycling policy for batteries.


Gujarat State Electric Vehicle Policy, 2021


·       Issued in June, 2021. Valid till 2025.

·       Budget outlay of INR 8.7 billion (US$116.90 million)

·       Support deployment of 2,00,000 EVs over next four years. The segment wise breakup of this target is:

o   Two-wheelers EVs– 1,10,000 units

o   Three-wheelers EVs – 70,000 units

o   Four-wheelers EVs– 20,000 units

·       The incentives on EVs will be based on battery capacity, available up to INR 10,000(US$134.40)/kwh.

·       All EVs will be exempt from payment of registration fees.

·       Policy incentives for boosting the charging infrastructure in the state.


Rajasthan Electric Vehicle Policy, 2021


·       Issued in July 2021. Valid till March 31,2022.

·       All EVs purchased before March 2022 will be eligible for State Goods and Services Tax (SGST) refund.

·       Additional purchase incentive for electric two wheelers and three wheelers.

West Bengal

West Bengal Electric Vehicle Policy, 2021

·       Issued on June 3, 2021. Valid for five years since notification.

·       Goal of one million EVs in the state across all segments during the policy implementation period.

·       Goal of establishing 100,000 public/semi-public charging stations in the next five years.

·       Achieve EV/Public charge point ratio of eight.

·       Recycling and reusing old batteries and discarding unusable batteries in an environment friendly manner.

·       Establishment of “EV Accelerator Cell”

·       Facilitate public charging infrastructure for EVs through DISCOMs.


Meghalaya Electric Vehicle Policy, 2021


·       Issued in March, 2021. Valid for period of five years since notification.

·       Seeks adoption of at least 15% EVs in the state in next five years by offering incentives.

·       Facilitate adoption of 20,000 EVs during the policy implementation period.

·       All types of EVs purchased during policy period shall be exempt from payment of registration fees and road tax.

·       Purchase subsidy of INR 10,000 (US$134.40)/kwh for the first 3,500 electric two-wheelers priced below INR 150,000 (US$2016.06)

·       Purchase subsidy of INR 4,000 (US$53.76)/kwh for first 200 electric three-wheelers priced below INR 500,000 (US$6720.20)

·       Purchase subsidy of INR4,000 (US$53.76)/kwh to the first 30 hybrid four-wheelers priced below INR 1.5 million (US$20,160).

·       Boost charging infrastructure by encouraging private investment.

·       Encourage reuse and recycling of batteries.

Andhra Pradesh

Electric Mobility Policy (2018-23)

·       Goal of one million EVs by 2024.

·       Goal of 100,000 slow and fast EV charging stations by 2024.

·       Government plans to stop registration of petrol and diesel cars by 2024 in the upcoming capital city of Amaravati.

·       All government vehicles, including corporations, boards, and government ambulances to be electric by 2024.


NCT of Delhi

Delhi Electric Vehicles Policy, 2020


·       Aims to have at least 50% e-buses for all new stage carriage buses procured for the city fleet, starting with 1,000 e-buses by 2020.

·       Aims for 25% of new vehicle registrations to be electric by 2024.

·       A purchase incentive of INR 5,000 (US$68) per kWh of battery capacity provided for two-wheelers and subject to a maximum incentive of INR 30,000 (US$409) per vehicle.

·       Incentive for scrapping and de-registering old highly polluting two-wheelers.

·       A purchase incentive of INR 10,000 (US$136) per kWh of battery capacity provided for electric four-wheelers (cars) (subject to a maximum incentive of INR 150,000 (US$2,039) per vehicle) for the first 1,000 e-cars registered in New Delhi after issuance of the policy.

·       Purchase incentive of INR 30,000 (US$409) per vehicle to owners of e-autos, e-rickshaws, and e-carts.



Electric Vehicles and Energy Storage Policy, 2017

·       100% of three and four-wheelers moving goods will be encouraged to transition to electric by 2030.

·       Local public transport bus fleets to introduce 1,000 EV buses.

·       Aim to set up 112 EV charging stations in Bengaluru.

·       Focus on venture capital fund for e-mobility start-ups and creation of secondary market for batteries.

·       Incentives such as interest free loans on net SGST for EV manufacturing enterprises.



Electric Vehicle Policy, 2019

·       Target of bringing one million EVs to the state by 2022 and 6000 e-buses in public transport by 2025.

·       Viability gap funding for e-buses and government fleet.

·       Incentives such as tax breaks, road tax exemptions, toll charge exemption, free permits for fleet drivers and free parking.

·       Priority to EV component manufacturing.


Electric Vehicle and Energy Storage Solution Policy, 2020



·       100% exemption of road tax and registration fee for the initial electric vehicles purchases.

·       EV sales target to achieve 80% two- and three-wheelers (motorcycles, scooters, auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40% buses, 30% private cars, 15% electrification of all vehicles by 2025.

·       Job creation for 20,000 workers by 2025 through EVs in shared mobility, EV manufacturing, and charging infrastructure development.

Uttar Pradesh

Electric Vehicles Manufacturing and Mobility Policy, 2019


·       Rolling out 1 million EVs combined across all segments by 2024.

·       Goal of 1,000 electric buses deployed in the state by 2030.

·       Target of achieving 70% electrification of public transportation by 2030 on identified green routes in 10 identified EV cities (Noida, Ghaziabad, Meerut, Mathura, Agra, Kanpur, Lucknow, Allahabad, Gorakhpur, and Varanasi).

·       Set up around 0.2 million slow and fast charging and swapping stations by 2024.

·       Establishes single-window system in place for all approvals required for EV and battery manufacturing units.

Madhya Pradesh

Madhya Pradesh Electric Vehicle Policy, 2019

·       Rapid EV adoption and contribution to 25% of all new public transport vehicle registrations by 2026.

·       Some cities will stop registering new internal combustion engine (ICE) autos.

·       Enable faster adoption by ensuring safe, affordable, and accessible charging infrastructure.

·       Shared e-rickshaws and electric auto-rickshaws incentives: free cost of permits, exemption/reimbursement from road tax/vehicle registration fees for five years, and 100% wavier on parking chargers at any municipal corporation run parking facility for 5 years.

Tamil Nadu

Electric Vehicle Policy, 2019

·       Electrify 5% of buses every year by 2030, and convert shared mobility fleets, institutional vehicles, and e-commerce delivery and logistics vehicles to EVs by 2030.

·       Convert all auto rickshaws in six major cities to EVs within a span of 10 years.

·       Establish venture capital and business incubation service hubs to encourage electric vehicle start-ups.

·       EV-related and charging infrastructure manufacturing units will receive 100% exemption on electricity tax till 2025.


EV Manufacturing, EV Usage Promotion and Related Services Infrastructure Policy, 2018


·       Aimed at 100% electrification of public transport, including e-buses; shared mobility, including e-bikes, e-taxis; and goods transport using electric two-, three-, and four-wheelers and other mini goods transport vehicles in five priority cities by 2030.

·       100% electricity duty exemption and stage carriage permit exemption for five years from date of commercial production.

·       Exempts the first 100,000 EV buyers from motor vehicles tax for five years.



Draft Bihar Electric Vehicle Policy, 2019

·       Priority to electrification of rickshaws. Target of converting all paddle rickshaws to e-rickshaws by 2022.

·       Promotion to manufacturing of e-rickshaws.

·       Set up fast-charging stations at intervals of 50 km on state and national highways and charging stations at commercial and residential locations.

Himachal Pradesh

Draft Electric Vehicle Policy, 2019

·       Aims for 100% transition to EVs by 2030.

·       Draft promotes creation of dedicated charging infrastructure and includes a provision for charging points in commercial buildings.

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