Where does India’s EV policy stand in global green energy push?

Electric vehicles are now mainstream, accounting for one in five cars sold globally in 2023. In the first quarter of 2024, global EV sales rose by 25% year-over-year, sustaining a growth rate similar to 2022. The International Energy Agency estimated that electric cars would represent 45% of new car sales in China, 25% in Europe, and over 11% in the US in 2024.

From January-November 2024, China led the global EV market, with 9.7 million of the 15.2 million EVs sold. Vietnam and Thailand have also seen substantial EV adoption, reaching 15% and 10% of sales, respectively, in 2023. Emerging markets like Brazil (3%), Indonesia (2%), and Malaysia (2%) show potential due to favorable policies. However, the discontinuation of purchase incentives poses a potential risk to the industry’s growth.

India, with a modest 2% market share, has relied on the Production Linked Incentive Scheme to support domestic EV and battery manufacturing. Unlike most countries, India’s EV transition is led by two-wheelers – motorbikes and scooters.

Here, we examine the role of policy in shaping India’s electric mobility landscape while drawing lessons from countries like China, the US, and others. Although significant progress has been made, the effectiveness of these policies in fully developing the EV ecosystem and addressing...

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