India Electric Mobility Index

The NITI Aayog report “Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles (EVs) in India” and the launch of the India Electric Mobility Index (IEMI) highlight both the potential and the challenges facing the country in transitioning to electric mobility. As India moves forward, addressing these challenges will be key to unlocking the growth and environmental benefits of EV adoption.

India Electric Mobility Index (IEMI)

The IEMI is the first-ever tool to track and benchmark India's progress in e-mobility at the state level. Launched in partnership with the World Resources Institute India, it evaluates the readiness and progress of states in the transition to electric vehicles. The index tracks 16 performance indicators across three categories:

1. Transport Electrification Progress – Measuring the adoption of electric vehicles on the demand side.

2. Charging Infrastructure Readiness – Assessing the development of a charging network.

3. EV Research & Innovation – Evaluating the supply-side R&D efforts.

The states are categorized into four levels:

• Achievers (100 points)

• Front Runners (65–99 points)

• Performers (50–64 points)

• Aspirants (0–49 points)

For 2024, Delhi emerged as the leader with a score of 77, followed by Maharashtra (68), Chandigarh, and Karnataka.

Electric Vehicle (EV) Overview

Types of Electric Vehicles (EVs):

• Battery Electric Vehicles (BEVs) – Fully electric vehicles powered by rechargeable batteries.

• Hybrid Electric Vehicles (HEVs) – Combine an electric motor and an internal combustion engine (ICE).

• Fuel Cell Electric Vehicles (FCEVs) – Use fuel cell technology to generate electricity for propulsion.

• Plug-in Hybrid Electric Vehicles (PHEVs) – Have both an engine and a rechargeable battery.

Status of EVs in India:

• India witnessed a significant increase in EV sales, reaching 2.08 million units in 2024, a sharp rise from 50,000 in 2016.

• However, EV penetration remains at 7.6% in 2024, far from the target of 30% by 2030.

Key Challenges Highlighted in the Report

1. Financing Challenges (for e-Buses & e-Trucks):

   • High capital cost: Electric buses and trucks are 2–3 times more expensive than their internal combustion engine counterparts.

   • Financial institutions are skeptical about the repayment capacity of smaller operators.

2. Vehicle-Centric Challenges:

   • EV batteries are heavy and costly, reducing truck load capacity.

   • The 15-year scrappage rule decreases the resale value of EVs.

3. Charging Infrastructure Challenges:

   • Public charging costs four times more than home charging due to GST (18%) and operator margins.

   • Issues with obtaining upstream power supply connections from DISCOMs.

   • Land constraints in cities and highways hinder the establishment of charging stations.

   • Resident Welfare Associations (RWAs) have concerns about safety regarding charging stations.

   • Lack of a unified app for locating, booking, and paying for charging stations.

4. Awareness and Perception Challenges:

   • Confusion over incentives offered by different states.

   • Misconceptions related to fire safety, battery degradation, range anxiety, and resale value.

   • Weak and fragmented awareness campaigns.

5. Inadequate Data and Regulatory Gaps:

   • Inaccurate data on EV categories in the VAHAN database.

   • Lack of unique battery IDs, making it difficult to track and recycle batteries.

   • The Inverted GST structure on EVs (input GST at 18% and output GST at 5%) is problematic for manufacturers.

Steps Taken by India to Boost EV Adoption

1. PM E-DRIVE Scheme:

   • Supports electric two-wheelers, three-wheelers, e-trucks, e-buses, and charging infrastructure.

   • Provides demand-side incentives to consumers.

2. EV Manufacturing Promotion:

   • The Scheme to Promote Manufacturing of Electric Passenger Cars aims to attract global EV manufacturers and make India a key EV manufacturing hub.

3. PM e-Bus Sewa Scheme:

   • Aims for the deployment of 38,000+ e-buses, ensuring payment security for operators.

4. PLI Scheme for Automotive & Auto Components:

   • To boost domestic production of EV-related technologies and components.

5. PLI – Advanced Chemistry Cells:

   • Aims to produce 50 GWh of domestic battery capacity, reducing dependence on imports.

6. GST Reduction:

   • GST on EVs reduced from 12% to 5%.

7. EVolutionS Program:

   • Launched by Department of Science & Technology (DST) to support EV startups.

Way Forward

1. Moving from Incentives to Mandates:

   • Set production targets for Zero Emission Vehicles (ZEVs) and impose higher registration fees/taxes on ICE vehicles to create demand for EVs.

2. Saturation Approach:

   • Target 100% EV adoption in 5 key cities within 5 years, supported by infrastructure and fleet electrification mandates.

3. Financing e-Buses and e-Trucks:

   • Create a pooled fund for low-interest loans to support the procurement of electric buses and trucks.

4. Battery Research:

   • Promote industry-academia-government partnerships for R&D on next-gen EV batteries.

5. Strategic Charging Infrastructure:

   • Develop 20 key corridors and establish nodal agencies for mapping and setting up charging hubs.

6. Unified National EV App:

   • Develop a centralized app for locating charging stations, booking slots, payments, and explore dedicated EV power lines.

7. Lowering Upfront Costs:

   • Encourage leasing models for buses and trucks and battery-as-a-service (BaaS) to reduce capital costs for small operators.

8. Awareness and Information:

   • Launch a national EV awareness program, assess stakeholder data needs, and create a robust information system to guide decisions.

Best Practices for EV Adoption

• China: The “10 Cities, 1000 Vehicles” program, where each city deployed at least 1,000 NEVs in public fleets, is a notable example.

• Singapore: Established EVElectric Charging to coordinate charging station deployment, working with relevant agencies.

• Europe: The ChargeMap app provides real-time data and user reviews of charging stations.

• UK: The Faraday Battery Challenge created the UK Battery Industrialisation Centre to scale lab prototypes to production.

Conclusion

India is on the verge of unlocking a significant 200 billion dollar opportunity in the EV sector, but the path forward requires addressing several structural and market challenges. The India Electric Mobility Index (IEMI) will play a crucial role in tracking progress and identifying gaps. By focusing on enhancing charging infrastructure, improving awareness, and addressing financial and regulatory issues, India can accelerate its transition to electric mobility, making it a global leader in the sector. Through sustained government support, strategic partnerships, and innovation, India has the potential to become a powerhouse in the EV space.