NITI Aayog released its report "Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles (EVs) in India" along with the first India Electric Mobility Index.
About India Electric Mobility Index (IEMI)
India Electric Mobility Index (IEMI), a first-of-its-kind tool to benchmark states' progress in e-mobility, was launched by NITI Aayog, in partnership with World Resources Institute India.
It tracks 16 performance indicators under 3 thematic categories-
Transport Electrification Progress: Tracks EV adoption on the demand side.
EV Research & Innovation: Evaluates supply-side R&D efforts.
The index groups states into four categories: Achievers (100), Front Runners (65–99), Performers (50–64), and Aspirants (0–49).
For the year 2024, Delhi led the rankings with a score of 77, followed by Maharashtra (68), Chandigarh, and Karnataka.
About Electric Vehicles (EVs)
Types: Battery EVs (entirely battery-powered); Hybrid EVs (have both engine and electric motor); Fuel Cell EVs (utilize 'fuel cell technology' to generate electricity for propulsion); Plug-in Hybrid EV (uses both an engine and a rechargeable battery) etc.
Status of E-mobility in India (Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles in India)
2.08 million EV sales in 2024, up from 50,000 in 2016.
7.6% EV penetration in 2024, far below the 30% target for 2030.
Key Challenges highlighted in the report
Challenge Area
Specific Issues
Financing Challenges (e-Buses & e-Trucks)
High capital cost: E.g., EV buses/trucks cost 2–3× ICE vehicles, making shift difficult for the small players.
High EMI burden: Doubts among financial institutions over repayment ability of small operators.
Vehicle-Centric Challenges
Heavy & costly batteries reduce truck load capacity.
15-year scrappage rule lowers resale value.
Charging Infrastructure Challenges
Public charging almost 4 times expensive as home charging (18% GST + operator margins).
Problems in getting upstream power supply connectionsfrom DISCOMs: E.g. differences in fee structures for getting connections and in tariff structures for electricity supplied.
Land constraints in cities/highways.
Resident Welfare Associations (RWAs) perceive a safety risk with charging stations.
Lack of collaboration between DISCOMs, ULBs, transport departments, and state nodal agencies.
Absence ofintegrated app for locating, booking & paying.
Awareness & Perception Challenges
Confusion due to differing incentives instates such as exemption for permits of lower tax rates.
Weak/fragmented awareness campaigns.
Misconceptions: fire safety, battery degradation, range anxiety, resale anxiety.
Inadequate data and regulatory gaps
VAHAN database does not accurately capture data on different categories of EVs, making policy design, subsidy targeting, and progress monitoring difficult.
Absence of unique battery IDs weakens tracking, resale, and recycling ecosystems.
Inverted GST for manufacturers asInput GST at 18% and output GST at 5%, which blocks the working capital and input tax gets piled up.
Steps taken by India to boost EV adoption
PM E-DRIVE Scheme: Supports e-2Ws, e-3Ws, e-trucks, e-buses, e-ambulances, and charging infrastructure and provides demand incentives for consumers (buyers/end users) to purchase certain categories of EVs.
Scheme to Promote Manufacturing of Electric Passenger Cars in India: To attract investments from global EV manufacturers and promote India as a manufacturing destination for passenger cars.
PM e-Bus Sewa – PSM (Payment Security Mechanism) Scheme: It targets deployment of 38,000+ e-buses and ensures payment security for operators against defaults by Public Transport Authorities
PLI Scheme for Automobile & Auto Components: To boost domestic production of Advanced Automotive Technology products, ensure 50% value addition, and attract investments in the auto sector.
EVolutionS program: Launched by Department of Science & Technology (DST) targeting EV startups.
Way Forward: Recommendations highlighted in report
Moving from Incentives to Mandates: Set targets for production of Zero Emission Vehicles (ZEVs); impose Higher registration fee/taxes for ICE etc.
Saturation Approach: 100% electric mobility adoption across 5 designated Indian cities within 5 years, leveraging infrastructure development, fleet electrification mandates, and targeted financing mechanisms.
Financing e-Buses and e-Trucks: Create a pooled fund from public and multilateral sources to provide low-interest loans for procurement.
Battery Research: Build academia–industry–government partnerships to accelerate work on new chemistries.
Strategic Charging Infrastructure: Develop 20 key corridors, set up nodal agencies, map hub locations, and use Time-of-Day pricing to boost efficiency.
Unified National EV App: Provide services for locating charging stations, booking slots, payments, and explore dedicated EV power lines.
Lowering Upfront Costs: Promote leasing models for buses and trucks to aid small operators and battery as a service (BaaS); Introduce a battery passport for health tracking; etc.
Batteries constitute almost 40 % of capital cost of an EV.
Awareness and Information: Launch a national EV awareness program, assess stakeholder data needs, and develop a comprehensive information system to guide decision-making.
Best Practices for EV Adoption
China: "10 Cities, 1000 Vehicles" program was a flagship initiative for 10 pilot cities, each tasked with deploying at least 1,000 New Energy Vehicles (NEVs) in public fleets.
Singapore: Established EVElectric Charging Pte Ltd(EVe), a wholly owned subsidiary of their Land Transport Authority to facilitate the establishment of charging stations, by coordinating with all the relevant agencies.
Europe:ChargeMap app provides real-time charging station data, user reviews, and is integrated with navigation systems.
UK:Advanced Propulsion Centre (APC) explicitly funds projects to bridge the gap between working prototype and commercialisation; Faraday Battery Challenge (funded by public and sector sector) created the UK Battery Industrialisation Centre (UKBIC)- a facility that enables companies to scale lab prototypes to production.
