India’s electric vehicle (EV) adoption is surging, with Delhi leading at an 11.5% penetration rate, followed by Kerala and Assam. A FICCI-Yes Bank report highlights state-level contributions to India’s EV transition, emphasizing the need for aggressive targets, stable policies, and collaboration to achieve national sustainability and net-zero goals.
India’s electric vehicle (EV) adoption is accelerating, with Delhi leading the way at an 11.5% EV penetration rate, according to a FICCI-Yes Bank report. Kerala (11.1%) and Assam (10%) follow closely, driven by significant adoption of electric two-wheelers (e2Ws) and three-wheelers (e3Ws). States like Gujarat, Odisha, Kerala, and Punjab recorded the highest compound annual growth rates (CAGR) in EV sales between FY21 and FY24, highlighting the importance of states collaborating and learning from successful strategies.
The report noted that the top five states accounted for over half of EV volumes in FY24, with EV sales becoming more evenly distributed across India over the past four years. It emphasized the pivotal role states play in India’s EV transition, crucial for achieving the country’s net-zero emissions targets. To meet national goals, the report urged doubling the current EV penetration rate and renewing state EV policies until 2030. It called for mandatory EV adoption in public transport and fleet operations to drive widespread use.
With many state EV policies nearing expiration, the report stressed the need for a stable, long-term policy framework to attract investors and accelerate adoption. It offered a roadmap to close the gap between ambition and execution, providing actionable recommendations to increase Zero Emission Vehicle (ZEV) penetration.
The report called on states to support industry growth and expand charging infrastructure through sustainable fiscal measures. It also urged the establishment of clear institutional mechanisms and policies and highlighted the need for collaboration between central and state governments to fast-track EV adoption.
As EVs play a critical role in India’s sustainability goals, the report underscored the urgency of setting ambitious targets, implementing policies promptly, and fostering cohesive efforts to transition toward a zero-emission future. These measures, it argued, are essential to ensuring India’s leadership in the global shift to sustainable transportation.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.