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
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
Odisha Electric Vehicle Policy, 2021
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· 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
Assam Electric Vehicle Policy, 2021
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· 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
Gujarat State Electric Vehicle Policy, 2021
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· 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
Rajasthan Electric Vehicle Policy, 2021
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· 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 | · 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
Meghalaya Electric Vehicle Policy, 2021
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· 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 | · 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.
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NCT of Delhi
Delhi Electric Vehicles Policy, 2020
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· 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.
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Karnataka | · 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.
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Kerala | · 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. |
Telangana
Electric Vehicle and Energy Storage Solution Policy, 2020
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· 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
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· 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 | · 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 | · 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. |
Uttarakhand
EV Manufacturing, EV Usage Promotion and Related Services Infrastructure Policy, 2018
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· 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.
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Bihar | · 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 | · 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. |