Innovative policies of different Indian states for electric vehicle implementation

Scooter India Limited developed Vikram SAFA India’s first three wheeler electric vehicle in Lucknow back in 1996. Manufacturing electric vehicle was novelty back then, but now green and clean mobility is need of the hour, since vehicular population is causing environment to deteriorate at an alarming level.

Multiple reason such as Eco friendliness, low fuel cost and lower maintenance cost etc. is making Electric Vehicles (EVs) popular. Government of India is taking many initiatives to boost EVs, they have launched National Electric Mobility Mission Plan 2020. Under this mission, in March 2015, faster adoption and manufacturing of (Hybrid) Electric Vehicles in India (FAME India) was launched.  Further, in 2017 EV@30 campaign that aspire all Electric Vehicle Initiative (EVI) members to have EVs contribute to 30 % of total vehicle sales by 2030.

With announcement of Rs. 10,000 crore under FAME 2 scheme by Government of India, an indication to push EVs, EV industry had 124 % growth and selling 56,000 units in FY18 against 25,000 units in FY17. In contrast sale of electric cars declined by 40% from 2,000 units in FY17 to 1,200 units in FY18.

In India some of the major manufacturer of EVs are in car segment. Mahindra electric is leading followed by Toyota, Maruti Suzuki and Tata Motors. In the two wheeler segment Hero Electric, Ather Energy, and Ampere are some key player.

Despite such initiative electric vehicle penetration in India is quite low. Reason being high price of EVs, nonexistence of charging infrastructure, and lower EV supply.

However some of the states of India putting policy in place favorable to EV manufacturers with mix of initiatives, fiscal soap and ecosystem building.


  • Brings investments of Rs 31,000 crore and create 55,000 jobs.
  • Create an environment for smooth transition from IC engines to EVs.
  • Startup incubation centre for EVs.
  • Support for charging infrastructure, R&D and skill development and subsidies.
  • Initiative for EV manufacturing such as industrial land availability and creating special EV manufacturing zones.
  • EVs exempted from GoK payment of takes.
  • Incentives to include EVs by cab aggregator, corporate fleet and public transport.
  • VC fund for research in EV mobility


  • Incentives for the purchase of EVs and to include EVS into public and shared transport.
  • Auto permit fees , one time parking fee, registration charges and road tax to be waived off.
  • Cab aggregator to ride sharing service providers get supports to create fleet of EVs.
  • 50% electric buses to be achieved in public transport by 2023.
  • Petrol and diesel vehicle owner to pay pollution cess on fuel.


  • Increase the number of registered EVs to 5 lakh.
  • Attract an investment of 25,000 crore for EVs and charging infrastructure and a job for 1 lakh people.
  • First 1,000 passenger electric bus buyers will be eligible for user subsidy for 5 years  and first 1 lakh EVs will get end user subsidy for five years. 
  • Petrol pump will be allowed to set up charging station and get support from govt.


  • Investors to have 100%  electricity duty exemption
  • To provide term loans of 10 to 50 crore to MSMEs to manufacture EVs
  • First 1 lakh customers purchasing commercial EVs can avail exemption from tax.


  • 1 million EVs by 2022
  • Over 6,000 electric buses under public transport by 2025
  • To createEV fleet of 2 lakh two wheeler,  50,000 three wheelers, 1,000 goods carriers, 3,000 buses, and 100 ferry boats

Andhra Pradesh

  • Attract investment of Rs 30,000 crore by 2030.
  • Create job for 60,000 people.
  • All the govt. buses, commercial vehicles to go electric by 2024.
  • 1 lakh charging stations to be built by 2024


  • Attract investment of $3 billion.
  • Create 50,000 jobs by 2022.
  • Innovation fund by govt. to support EVs.
  • A mobility engineering cluster will be developed

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