Niti Aayog Pitches For National EV Policy With Clear Targets, Timelines
The report called for establishing a National EV policy with clear targets and timelines, and a regulatory framework with phased EV mandates.
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Government think tank Niti Aayog on Monday pitched for a National EV policy with clear targets and timelines to fast-track India's electric mobility transition. The Aayog, in its report titled 'Unlocking a $200 Billion Opportunity: Electric Vehicles in India', further recommended expanding corporate average fuel efficiency norms to a wider segment of vehicles.
The report called for establishing a National EV policy with clear targets and timelines, and a regulatory framework with phased EV mandates.
It also pitched for a clear policy, with target timelines, for zero-emission vehicle adoption.
"Create a pooled fund with contributions from the public budget and multilateral development banks for providing lower-interest loans for the procurement of e-buses and e-trucks." the report said and suggested designing and launching an appropriate scheme to channel funds.
The Aayog also called for prioritising service delivery models over asset procurement, shifting capital costs to operating expenditures and scaling R&D efforts to drive down battery costs, enhance energy density and reduce reliance on imported rare earth materials.
"Strategic scaling of charging infrastructure and enhancing public awareness and information systems are critical enablers." the Aayog said.
India seeks to attain a 30% share of electric vehicles in total vehicles sold by 2030.
Sales of EVs in India increased from 50,000 in 2016 to 2.08 million in 2024, against global EV sales of 9,18,000 units in 2016 to 18.78 million in 2024.
The report said India's transition has been slow to start, but it is picking up.
Noting that India's EV penetration was only about one-fifth of the global penetration in 2020 but has picked up to over two-fifths in 2024, the report said it continues to show an increasing trend, though relatively slow.
According to the report, India has progressed to only about 7.6% of sales in 2024, which is far behind its target of 30% by 2030.
"Thus, it has taken nearly 10 years to reach a penetration level of 7.6% and now needs to increase this share by over 22% in the next 5 years alone." it added.
The report provides data-driven insights, identifies key unlocks and recommends actionable steps to support a faster, more coordinated national transition to clean mobility.
