India Has To Turbocharge Its EV Policy. Delhi Shows The Way

Add another wheel, and the numbers aren't as promising. Though electric car sales have also increased by 20 per cent, approaching a landmark 1 lakh units in 2024, the share of sales remains only slightly above 2 per cent, according to the Global EV Outlook 2025 report. 

In other news, the Delhi government has formed a 10-member committee to draft a revised electronic vehicle (EV) policy, targeting everything from CNG-to-EV conversions to charging stations under flyovers. 

As the momentum builds, industry leaders warn that policy fine-tuning is still needed to sustain growth and deliver on India’s Net Zero goal by 2070 and Viksit Bharat by 2047 commitments.

Latest Uptick and Regulatory Shuffle

India’s three-wheeler segment has been the poster child of rapid electrification, with electric models capturing a 57 per cent share of total sales in 2024.

Electric 2/3-wheelers are the most accessible and affordable entry point into electric mobility. While cars need substantial infrastructure for charging, the removable batteries in the 2/3-wheelers can be charged with standard sockets at home. 

Encompassing all this and more on the policy front, Delhi’s expert panel will set annual targets for private and semi-public charging stations, devise a scientific plan to convert CNG vehicles by April 2026, and address battery waste and subsidy delays.

This flurry of activity follows the extension of the existing Delhi EV policy, which was due to expire in March this year. It signals the capital’s intention to lead by example in urban EV deployment and green mobility.

Bridging the Gaps

The foundational blocks of India's EV framework are in place, but the EV ecosystem still needs finer calibration. “Although the government is promoting EVs for clean and green energy, policies need to be implemented,” Rachna Ahuja, Chairman of Ingar Electronics, an EV components manufacturer, told The Secretariat.

She stresses that “the most important factor is providing public charging stations, especially on highways and vast corridors”, and recommends binding corridor-wide targets and fast-track approvals for charging infrastructure.

For all the announcements of new electric car models with longer ranges, EV uptake will only accelerate when it is seen as a viable, seamless, worry-free alternative.

No one wants the hassle of being stranded without a charging station, and surveys suggest that this "range anxiety" thwarts more than half of potential buyers' ambitions in India. 

But perhaps worse than the lack of charging infrastructure is the unreliability of the infrastructure, in the form of defunct, vandalised, or missing chargers. A reality that is not uncommon, and one that contributes to sluggish adoption and undermines public trust.

According to FICCI's EV Public Charging Infrastructure Roadmap 2030 released late last year, India will need a capital investment of Rs 16,000 crore for charging infrastructure by 2030, just to meet the government’s goal of 30 per cent electrification. Without this backbone, even the best-intentioned policies and incentives may not succeed. 

The national capital accounts for about 40 per cent of the total power consumption at EV charging stations in the country, and while this is a win for Delhi, it points to the uneven pace of infrastructure rollout and EV adoption across the rest of India.

Ahuja also calls for bank loans at lower interest rates and credit guarantees to de-risk lending for small fleet operators. At the moment, financial levers remain underutilised. 

On trade, India must balance sheltering domestic players with attracting investment and exports. While the India-UK FTA (free trade agreement) drafts a staged cut in tariffs on imported cars — slashing duties to 10 per cent under quotas — the finalisation of FTAs with the EU and US will determine how much India opens its doors.

A strategic reduction of import duties on EV components, coupled with free-trade pacts that favour clean-tech imports and exports, would align costs with global markets.

India’s electric mobility narrative is now one of both strength and urgency. As Ahuja says, the moment is right. “As an entrepreneur in the EV sector, we would look for support and incentives from the government to make EV adoption successful.”

What Exists So Far

India’s EV policy framework rests on a succession of high-value schemes. The original FAME I programme, launched in 2015 with a Rs 895 crore budget, morphed into FAME II in 2019, expanding incentives to e-two-, three-, and four-wheelers and commissioning thousands of public chargers under a Rs 11,500 crore envelope.

In September 2024, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme took over, allocating Rs 10,900 crore over two years to extend purchase subsidies for e-2Ws, e-3Ws, and buses and to bolster charging networks until March 2026. 

To secure battery supply chains, the government approved the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) in May 2021, with an outlay of Rs 18,100 crore to attract giga-scale battery plants and promote Make in India. 

To promote self-reliance, the Union Cabinet green-lit the National Critical Mineral Mission in January 2025, earmarking Rs 16,300 crore for the exploration of lithium, cobalt, and other critical minerals central to meeting clean energy targets, with an additional Rs 18,000 crore of PSU investment planned. 

To entice global EV carmakers, the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) was notified in March 2024. Applicants committing Rs 4,150 crore capex and achieving 25 per cent domestic value addition in three years gain the right to import fully built EVs at a reduced 15 per cent duty, versus 70-110 per cent ordinarily, though, beyond Tesla’s entry, uptake has been cautious. 

The coming year may test whether India can convert bold pledges into roads of silent, zero-emission vehicles, driving the country closer to a Net Zero horizon.