ABSTRACT

The paper has analyzed initiatives and milestones that drove the evolution of EV policy in India, considering the economic and environmental context. The paper is divided into three phases: post-independence, post-liberalization, and active government initiative phase post-2010. The major EV policy drivers identified are: rising vehicular emission causing ambient air quality deterioration in urban areas, global climate change agreements, increasing crude oil import bills and demand for sustainable transport solutions in cities. The major government initiatives to increase EV demand are the MNRE incentive scheme, National Electric Mobility Mission Plan 2020 (NEMMP), Faster Adoption and Manufacturing of Electric Vehicle (FAME) Scheme Phase I and II. Through these initiatives, the government has indicated a clear inclination towards the electrification of the transport sector. The implementation was slow, subsidy access was limited, and it did not boost EV sales as predicted. There were gaps in policy planning and implementation timeframe due to stakeholder objections and lack of institutional mandate. The financing responsibility of EV charging infrastructure lack clarity, and it needs to be delegated to respective ministerial departments. India still does not have a National EV policy document, which is a major issue for upcoming investors in the EV industry and prospective consumers. The success story of China indicates how the top-down approach, along with city-level aggressive implementation strategies, can boost EV share. On the other hand, Norway cut the cost of EV by removing sales tax and provided non-fiscal incentives like exemption from road toll, parking fee, and road space restriction. There is a need to make the EV transition more practical and inclusive, considering the cost-conscious Indian market and phased implementation, making the transition economically viable. The paper has explored the EV policy evolution in India and its drivers. It also identifies contextual issues to suggest a more practical approach towards sustainable EV penetration.