Are Government Policies Supercharging India’s EV Revolution?

The Indian government has recently announced a range of aggressive policies, which are expected to rapidly propel the use of electric vehicles and build a comprehensive clean transport ecosystem. Needless to say, as we discuss the crucial role of the government initiative in promoting EV adoption. It becomes apparent what strategy and intervention are required to remove obstacles to India’s greener and more sustainable future.

State of the Art in EV Adoption 

As of 2024, India has witnessed an upsurge in electric vehicle registrations at 16% compared to last year, reflecting 842,396 electric vehicles in the country. The growth is reportedly seen mainly due to government initiatives. Such as the FAME India Scheme, set at approximately ₹10,000 crore for the promotion of electric mobility. 

Shailesh Chandra, Managing Director, Tata Motors, opines that the support of the Government would be required to become an Atmanirbhar nation in the EV space. “The administration has made it quite evident that it supports the nation’s rapid adoption of electric vehicles,” Shailesh said.

Government Policies

• FAME India Scheme: The scheme supports electric two-wheelers, three-wheelers, and public transport electrification.
• Electric Mobility Promotion Scheme (EMPS): This has been initiated from 2024 with an outlay of ₹500 crores, which will also support and encourage two and three-wheelers under subsidy.
• Infrastructure Development: Over 16,344 public charging stations have been installed. One of the significant disincentives for adapting EVs has already been addressed.

The Future Perspective

Experts believe that penetration of EVs through government initiatives, corporate commitment, and technological advancements could reach between 15-20% levels by 2025. As part of this event, the Union Budget of 2024 has sealed the deals with extension of subsidy and even funding for charging infrastructure expansion. A collaborative approach will pave the way to a greener transportation system. Promoting India’s role as a hub in the global electric vehicle market toward a sustainable future for generations to come. 

Atul Mudaliar of Climate Group calls out the role of company commitments to electricification. “More than 390,000 electric vehicles are committed by companies like Zomato and Flipkart. Over 20 global and Indian businesses have committed to electrifying their fleets in India by 2030.”