NITI Aayog launched its report “Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles in India” along with the first edition of India Electric Mobility Index (IEMI 2024) in New Delhi. The report presents a roadmap for accelerated EV adoption in India by 2035, aiming at large-scale economic, environmental, and energy benefits.
Key Highlights of Report
- $200 Billion EV Market Potential: By 2035, EV adoption could create a $200 bn opportunity, generate 10 million jobs, save ₹3.7 lakh crore in oil imports, and avoid 1 gigatonne of CO₂.
- EV Sales Growth:
- EV share in total sales rose from 0.5% in 2018 → 7.7% in 2024.
- Over 6.5 million EVs on roads; 12 lakh registered in 2024 alone.
- Charging Infrastructure:
- Present: 25,000 chargers (Oct 2024).
- Required by 2035: 2.9 million chargers.
- Policy Coverage: 29 States/UTs notified EV policies; 4 in draft stage.
- Battery Demand: Over 250+ GWh annually by 2035.
- Carbon & Energy Benefits: Save 474 MTOE oil equivalent + cut 839 MtCO₂e emissions by 2035.
India Electric Mobility Index (IEMI 2024)
Evaluates & scores States/UTs across 16 indicators under 3 core themes:
- Transport Electrification Progress (EV adoption trends).
- Charging Infrastructure Readiness (infra development).
- EV Research & Innovation Status (R&D, startups).
Opportunities from EV Transition
- Energy Resilience: Cuts crude oil imports, enhances forex stability.
- Green Manufacturing: Boosts domestic production of batteries, EV components → Atmanirbhar Bharat.
- Urban Mobility Reform: Push for clean, shared, public EV transport.
- Innovation Ecosystem: Growth of R&D in battery tech, software, mobility startups.
- Sustainable Infra: Development of smart grids, EV charging networks, energy-efficient planning.
Five Unlocks for Accelerated EV Transition
- Stable Policy Architecture – Long-term, consistent EV policies.
- Low-cost Financing – Green loans, credit insurance for buyers.
- EV Ecosystem Development – Local value chains for batteries, motors, recycling.
- Public Charging Expansion – 2.9 million chargers by 2035.
- Incentivising Adoption – Subsidies, tax rebates, carbon credits.
Challenges Identified
- High upfront EV cost due to batteries.
- Financing gaps – reluctance of banks/ NBFCs, esp. for e-buses & e-trucks.
- Patchy charging infra – concentrated in metros.
- Weak battery recycling ecosystem.
- Policy fragmentation across states.
- Low awareness among consumers & MSMEs.
EV Status in India (as per Report)
- Target: 30% of total sales → EVs by 2030.
- Trajectory: 50,000 EVs (2016) → 2.08 million EVs (2024).
- Global Benchmark: India’s EV penetration grew from 20% of global avg (2020) → 40% of global avg (2024).
- Segment-wise:
- Strong growth in 2-wheelers & 3-wheelers.
- Moderate progress in e-buses.
- Slow adoption in e-cars, negligible in long-haul e-trucks.
- Gap: 7.6% EV sales in 2024 vs 30% target by 2030 → needs 22% jump in 5 years.
Government Initiatives for EV Promotion
- FAME India Scheme (Phases I & II): Faster Adoption & Manufacturing of Hybrid & EVs.
- PM E-DRIVE Scheme: Supports e-2W, e-3W, e-buses, e-trucks, e-ambulances, charging stations.
- GST Reduction: EVs – 5% (from 12%); EV chargers – 5% (from 18%).
- Phased Manufacturing Programme (PMP): Boosts indigenous EV production & supply chains.
- Registration Fee Exemption: For battery-operated vehicles.
Way Forward
- Codify Mission EV@30 under Cabinet → cross-ministry coordination.
- Battery Localization: Secure critical minerals, boost cell manufacturing.
- Unified Green Transport Fund: To finance infra, subsidies, retrofitting.
- Dynamic EV Readiness Index: State-wise competition on EV adoption.
- Just Transition: Retraining ICE workforce → EV sector jobs.
NITI Aayog
- Formed: 2015 (replaced Planning Commission).
- Chairperson: Prime Minister of India.
- Current Vice-Chairperson: Suman Bery.
- CEO: B.V.R. Subrahmanyam (2023–present).
FAME India Scheme
- Launched in 2015 under National Electric Mobility Mission Plan (NEMMP).
- Phase II (2019–2024): Budget ₹10,000 crore.
India’s EV Target
- 30% of sales by 2030 (Government).
- Net-zero by 2070 (announced at COP26, Glasgow, 2021).
Global EV Market
- China leads in EV adoption & battery production.
- Norway has highest EV penetration (>80% of new car sales are electric).