Charging Ahead: The Impact of India's EV Policies on Manufacturing and Adoption Strategies

  • Published | 18 March 2024

The article discusses various policies and initiatives taken by the Indian government to promote electric vehicle adoption in the country. Key points include the launch of the FAME India scheme in 2015 to boost EV adoption, the PLI scheme in 2021 to incentivize domestic auto component manufacturing, and the National Programme on Advanced Chemistry Cell Battery Storage in 2021. It also discusses various EV policies of different Indian states providing incentives for manufacturing, adoption, and charging infrastructure development. Major companies like Ola Electric, Greaves Cotton, etc. are working to establish EV manufacturing facilities and retail networks in India.

India's EV Manufacturing

FAME India Scheme was introduced in 2015 to bring up the level of adoption of electric vehicles and address issues like emissions from vehicles. The scheme now is fully operational with the implementation of its Phase II having a total outlay of INR 10,000 ($ 1.2 Bn) for a period of 5 years from the commencement date of April 1, 2019. The share of total budgetary assistance that is earmarked to create demand for electric vehicles in the country is 86%. Accordingly, 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid), and 10 lakh e2 Wheelers will be supported by this provision.

Under this scheme, the Production Linked Incentive (PLI) Scheme for the Automotive Sector, which was launched in September 2021 with a fiscal outlay of INR 25,938 Cr ($ 3.1 Bn) is to be used for supporting the domestic manufacturing of advanced automotive technology (AAT) products and attracting investments in the automotive manufacturing value chain. The SOP details that the scheme has two parts: UNITED OEM will produce electric vehicles or those with hydrogen engines, while COMMON CHAMPIONS will manufacture parts that are innovative and high-tech. Under the plan, proposals totaling INR 74,850 Cr ($ 9 Bn) have been received against the target investment of INR 42,500 Cr ($ 5.1 Bn) over five years.

PLI Scheme under the National Programme on Advanced Chemistry Cell (ACC) Battery Storage was launched in the year 2021 to help in building manufacturing capabilities of India in ACC manufacturing with an outlay of INR 18,100 Cr ($ 2.1 Bn) for seven years (including two years of the gestation period). This remuneration shall be paid in installments of one year at a stretch conditional upon the production of batteries sold in India during such period. Thus, up to now, 3 firms have been chosen with 30 GWh of capacity.

Additionally, the government has taken the following measures to provide impetus to green mobility further:

• The 2023-24 Union Budget exempted the customs duty on the import of capital goods and machines needed for the manufacturing of lithium-ion cells which are used in batteries for electric vehicles.

• A GST rate applicable to electric vehicles stands at 5% as opposed to 12%; GST on chargers or charging stations for electric vehicles is reduced from 18% to 5%.

• Both the commercial vehicles that run on battery and the private ones are accorded the green license plates. They are also not exempted from permit requirements. Road tax exemption for EVs temporarily, which in the long run will help bring down the initial purchase price of EVs.

• The creation of Public Electric Vehicles Charging Infrastructure on a national had become the aim of the Ministry of Power, which came up with the revised Guidelines and Standards on the said subject. The guidelines expect private players to install charging stations for EV systems. Consequently, the Oil Marketing Companies have made a move aiming to install 22,000 EV charging stations in popular cities and on the major highways in the country.

On 14th March 2024, the Indian Government issued an electric vehicles (EV) policy, suggesting a minimum of Rs 4,150 crore or about $500m for infrastructure development. The multiyear incentives offered are to enable investors to establish EV manufacturing sites within 3 years and DVA of 25% in the 3rd year and 50% in the 5th year.

In an attempt to attract EV manufacturers into India particularly, Tesla, a US-based EV Market that can also enter the emerging EV market of the country on the 14th of March 2024, the government introduced a new EV policy that includes incentives for them. The gazette notification by the Centre mentions that the importers of up to 8.000 EVs if priced around $35,000 or above, may have a simple duty charge of 15% which was 70% earlier. This would apply only if the importers commit to having an investment of at least $500 million in India within the next three On the other hand, native OEMs Tata Motors & Mahindra & Mahindra demanded the price corner of the market CUV above $ 35,000 from the government in favor of the protection of their investments and competitiveness levels. Tesla's efforts of lowering the duty on the new $25,000 EV that it plans to introduce to markets like India will most likely be replaced with its Model 3, which is currently sold globally at close to $40,000 in the international market. Therefore, the company will concentrate on making its procedures locally to start its India market entry plans. However, the persons mentioned above added that it is on The step is merely believed to be a deft performance by the government on the birth of the model code of conduct day before the upcoming general election, where India is being positioned as a business-welcoming destination but also being managed not to hurt the domestic industry. The government will also seek bank guarantees equalling the reduction in import duty on the vehicles from the carmakers, and will only return them if they meet all the criteria laid down under the scheme in five years.

In the midst of June 2022, Haryana also approved its EV policy in line with other states. The policy enables the State to establish itself as a reliable EV manufacturing hub and in the same breath to develop the supporting ecosystem by providing charging infrastructure, skill development, and R&D in EV technology. The government of Haryana state has made 2022 as “Year of Electric Vehicles” declaration.

In the month of April 2022, one of the dense energy batteries in the world at 54MWh, was developed by a battery startup in Bengaluru followed by its acquisition by a European renewable energy company, Eren Groupe, it’s used for storage is also a major factor. This hefty density ensures that more power is produced per atom, which is an economical choice compared to other batteries like sodium-ion and aluminum air. The battery's charges, by the manufacturer, take 30 minutes to charge fully. This new acquisition by a European company will not only contribute to domestic manufacturing but also to the development of strategies that make more EVs affordable, mainly because batteries which are the most expensive component of the car may account for up to 40 percent of the total price.

In November 2021, India rolled out the website e-AMRIT – – at the COP26 Summit in Glasgow, this one-stop solution for all information on electric vehicles is provided. It addresses these concerns that EVs may have when one thinks about the adoption of this technology. Such issues include the positioning of charging facilities and the options for financing EVs. Plus, also addresses information about investment, policies of the government, and available subsidies for the drivers and manufacturers.

The federal government is also making significant efforts toward the transition to green mobility, and the recent modifications to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) II scheme to make electric two-wheelers affordable is a notable mention. During the second phase of the FAME scheme, the e-vehicles were supported through demand incentives to the amount of about INR 18.69 billion and the total number is about 469,315 as of July 11, 2022. Granted permissions of 6315 electrical buses and 2877 EV charging stations sanctioned in 68 cities across 25 states/UTs are the most. As a result, there are 50 OEMs, of which there are those that are start-ups and established manufacturers among them. These companies have registered and revalidated about 106 of their electric vehicle models. There are 1,576 charging stations designated for setting up along the highways and expressways in 9 and 16 routes, respectively.

Moreover, by integrating production-linked incentive schemes, aims to establish a local production system will be also supported by targets of increased adoption of electric mobility. This is intended to be realized by rewarding new investments into the creation of local supply chains that are domestically focused on critical technologies, products, and components.

By September 2021, Greaves Cotton has unveiled his entry into multi-brand retail of electric vehicles under the brand name AutoEVMart. This is reportedly the best way a platform can be made to enable the consumer to own an electric vehicle from Ampere Electric to the many others in the EV space. Hence, AutoEVMart will be a one-stop shop for electric vehicle needs in India, providing e-scooters, e-rickshaws, and other EVs as well as EV accessories. The Greaves group is planning to establish the first store of its kind merchandising the new technology in Bengaluru.

In September 2021, the State of Assam declared the Electric Vehicle Policy, 2021 and, slated the target for phasing out fuel-based vehicles by 2030. The Assam government has got to begin by changing all the vehicles it has for government use and the public transport buses to the EVs replacement. This objective is to place 200,000 electric vehicles on the road within the next five years. The Industries, Commerce, and Public Enterprises Department of Assam has reported that the new EV Policy offers people the opportunity to make the switch from ICVs to EVs, through different incentive options. The government of Assam also has the NEIDP scheme (2017) and IIP Assam (2019) that provide incentives for EV manufacturing in the state.

SwPL, an Indian leading EPC firm has formally commenced its activities in the electric vehicle (EV) segment in India. It has entered into a 50-50 joint venture with Enel X, a company that was created on Apr 1, 2021, to populate the Indian market with innovative charging infrastructure.

The journey of Indian start-ups towards a sustainable future is not limited to the mobility segment. In March 2021, Ola Electric, the subsidiary of the unicorn Indian ride-hailing start-up, also announced that they would be building the world’s largest electric scooter plant in Hosur (which is a two and half-hour drive from Bengaluru) over the next twelve weeks ola electric plans to increase its production capacity to 10 million by 2022 that is 15% of the total number of electric scooters to be produced in the world.

Electric Vehicle Policy in Indian States


Key policy targets


Jharkhand Electric Vehicle (EV) Policy 2022

  • Issued October 7, 2022


Issued in July 2021. Valid till March 31, 2025

  • Budget outlay of INR 9.3 billion (US$124.97 million).

  • Achieve a 10% share of EVs in all new vehicle registrations by 2025.

  • Attain 25% electrification of public transportation and last-mile delivery vehicles in five targeted urban agglomerations of Greater Mumbai, Pune, Nashik, Nagpur, and Aurangabad by 2025.

  • Several purchase incentives across all segments of EVs, including e-buses.

  • Incentives for battery recycling.

  • Set up at least one Gigafactory for manufacturing of Advanced Chemistry Cell (ACC) batteries in the state.

  • Establish charging infrastructure across the state as well as connecting highways. Incentives for setting up charging stations.


Odisha Electric Vehicle Policy, 2021


  • Issued in August, 2021. Valid for five years

  • Achieve the adoption of 20% EVs in all vehicle registrations in the state by 2025. The focus segments are two-wheelers, three-wheelers, four-wheelers, and electric buses.

  • Waivers on road tax and registration fees during the policy period.

  • Incentives for EV and component manufacturing, including batteries.

  • Additional incentives for setting up both public and private charging infrastructure.

  • Additional sops for Lithium Ion battery manufacturing.


Assam Electric Vehicle Policy, 2021


  • Issued in September 2021. Valid for five years.

  • Achieve 25% penetration of EVs in the total number of vehicle registrations in Assam.

  • Support deployment of 200,000 EVs over the next five years. The segment-wise breakup of this target is:

  1. Two-wheeler EVs – 100,000 units;

  2. Three-wheeler EVs – 75,000 units; and

  3. Four-wheeler EVs – 25,000 units.

  • Offer incentives for EV and component manufacturing.

  • Focus on recycling policy for batteries.


Gujarat State Electric Vehicle Policy, 2021


  • Issued in June 2021. Valid till 2025.

  • Budget outlay of INR 8.7 billion (US$116.90 million)

  • Support deployment of 2,00,000 EVs over the next four years. The segment-wise breakup of this target is:

  1. Two-wheeler EVs– 1,10,000 units

  2. Three-wheeler EVs – 70,000 units

  3. Four-wheeler EVs– 20,000 units

  • The incentives on EVs will be based on battery capacity, available up to INR 10,000(US$134.40)/kWh.

  • All EVs will be exempt from payment of registration fees.

  • Policy incentives for boosting the charging infrastructure in the state.


Rajasthan Electric Vehicle Policy, 2021


  • Issued in July 2021. Valid till March 31, 2022.

  • All EVs purchased before March 2022 will be eligible for a State Goods and Services Tax (SGST) refund.

  • Additional purchase incentive for electric two-wheelers and three-wheelers.

West Bengal

West Bengal Electric Vehicle Policy, 2021

  • Issued on June 3, 2021. Valid for five years since notification.

  • Goal of one million EVs in the state across all segments during the policy implementation period.

  • Goal of establishing 100,000 public/semi-public charging stations in the next five years.

  • Achieve EV/Public charge point ratio of eight.

  • Recycling and reusing old batteries and discarding unusable batteries in an environment-friendly manner.

  • Establishment of “EV Accelerator Cell”

  • Facilitate public charging infrastructure for EVs through DISCOMs.


Meghalaya Electric Vehicle Policy, 2021


  • Issued in March 2021. Valid for a period of five years since notification.

  • Seeks adoption of at least 15% EVs in the state in the next five years by offering incentives.

  • Facilitate the adoption of 20,000 EVs during the policy implementation period.

  • All types of EVs purchased during the policy period shall be exempt from payment of registration fees and road tax.

  • Purchase subsidy of INR 10,000 (US$134.40)/kwh for the first 3,500 electric two-wheelers priced below INR 150,000 (US$2016.06)

  • Purchase subsidy of INR 4,000 (US$53.76)/kWh for first 200 electric three-wheelers priced below INR 500,000 (US$6720.20)

  • Purchase subsidy of INR4,000 (US$53.76)/kWh to the first 30 hybrid four-wheelers priced below INR 1.5 million (US$20,160).

  • Boost charging infrastructure by encouraging private investment.

  • Encourage the reuse and recycling of batteries.

Andhra Pradesh

Electric Mobility Policy (2018-23)

  • Goal of one million EVs by 2024.

  • Goal of 100,000 slow and fast EV charging stations by 2024.

  • Government plans to stop registration of petrol and diesel cars by 2024 in the upcoming capital city of Amaravati.

  • All government vehicles, including corporations, boards, and government ambulances to be electric by 2024.

NCT of Delhi

Delhi Electric Vehicles Policy, 2020


  • Aims to have at least 50% e-buses for all new stage carriage buses procured for the city fleet, starting with 1,000 e-buses by 2020.

  • Aims for 25% of new vehicle registrations to be electric by 2024.

  • A purchase incentive of INR 5,000 (US$68) per kWh of battery capacity is provided for two-wheelers and is subject to a maximum incentive of INR 30,000 (US$409) per vehicle.

  • Incentive for scrapping and de-registering old highly polluting two-wheelers.

  • A purchase incentive of INR 10,000 (US$136) per kWh of battery capacity provided for electric four-wheelers (cars) (subject to a maximum incentive of INR 150,000 (US$2,039) per vehicle) for the first 1,000 e-cars registered in New Delhi after issuance of the policy.

  • Purchase incentive of INR 30,000 (US$409) per vehicle to owners of e-autos, e-rickshaws, and e-carts.



Electric Vehicles and Energy Storage Policy, 2017

  • 100% of three and four-wheelers moving goods will be encouraged to transition to electric by 2030.

  • Local public transport bus fleets to introduce 1,000 EV buses.

  • Aim to set up 112 EV charging stations in Bengaluru.

  • Focus on venture capital fund for e-mobility start-ups and creation of a secondary market for batteries.

  • Incentives such as interest-free loans on net SGST for EV manufacturing enterprises.


Electric Vehicle Policy, 2019

  • Target of bringing one million EVs to the state by 2022 and 6000 e-buses in public transport by 2025.

  • Viability gap funding for e-buses and government fleet.

  • Incentives such as tax breaks, road tax exemptions, toll charge exemptions, free permits for fleet drivers, and free parking.

  • Priority to EV component manufacturing.


Electric Vehicle and Energy Storage Solution Policy, 2020



  • 100% exemption of road tax and registration fee for the initial electric vehicle purchases.

  • EV sales target to achieve 80% two- and three-wheelers (motorcycles, scooters, auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40% buses, 30% private cars, 15% electrification of all vehicles by 2025.

  • Job creation for 20,000 workers by 2025 through EVs in shared mobility, EV manufacturing, and charging infrastructure development.

Uttar Pradesh

Electric Vehicles Manufacturing and Mobility Policy, 2019


  • Rolling out 1 million EVs combined across all segments by 2024.

  • Goal of 1,000 electric buses deployed in the state by 2030.

  • Target of achieving 70% electrification of public transportation by 2030 on identified green routes in 10 identified EV cities (Noida, Ghaziabad, Meerut, Mathura, Agra, Kanpur, Lucknow, Allahabad, Gorakhpur, and Varanasi).

  • Set up around 0.2 million slow and fast charging and swapping stations by 2024.

  • Establishes a single-window system in place for all approvals required for EV and battery manufacturing units.

Madhya Pradesh

Madhya Pradesh Electric Vehicle Policy, 2019

  • Rapid EV adoption and contribution to 25% of all new public transport vehicle registrations by 2026.

  • Some cities will stop registering new internal combustion engine (ICE) autos.

  • Enable faster adoption by ensuring safe, affordable, and accessible charging infrastructure.

  • Shared e-rickshaws and electric auto-rickshaws incentives: free cost of permits, exemption/reimbursement from road tax/vehicle registration fees for five years, and 100% waiver on parking chargers at any municipal corporation-run parking facility for 5 years.

Tamil Nadu

Electric Vehicle Policy, 2019

  • Electrify 5% of buses every year by 2030, and convert shared mobility fleets, institutional vehicles, and e-commerce delivery and logistics vehicles to EVs by 2030.

  • Convert all auto rickshaws in six major cities to EVs within a span of 10 years.

  • Establish venture capital and business incubation service hubs to encourage electric vehicle start-ups.

  • EV-related and charging infrastructure manufacturing units will receive a 100% exemption on electricity tax till 2025.


EV Manufacturing, EV Usage Promotion, and Related Services Infrastructure Policy, 2018


  • Aimed at 100% electrification of public transport, including e-buses; shared mobility, including e-bikes, and e-taxis; and goods transport using electric two-, three-, and four-wheelers and other mini goods transport vehicles in five priority cities by 2030.

  • 100% electricity duty exemption and stage carriage permit exemption for five years from the date of commercial production.

  • Exempts the first 100,000 EV buyers from motor vehicles tax for five years.


Draft Bihar Electric Vehicle Policy, 2019

  • Priority to electrification of rickshaws. Target of converting all paddle rickshaws to e-rickshaws by 2022.

  • Promotion to manufacturing of e-rickshaws.

  • Set up fast-charging stations at intervals of 50 km on state and national highways and charging stations at commercial and residential locations.

Himachal Pradesh

Draft Electric Vehicle Policy, 2019

  • Aims for 100% transition to EVs by 2030.

  • Draft promotes the creation of dedicated charging infrastructure and includes a provision for charging points in commercial buildings.

Conclusion: In conclusion, the Indian government has implemented various policies and initiatives to promote electric vehicle adoption in the country, such as the FAME India scheme, PLI schemes, and state-specific EV policies. Major companies are also investing in EV manufacturing facilities and retail networks in India, signaling a significant shift towards green mobility in the country.

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