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Indian states can play a pivotal role in accelerating the EV transformation in India in the coming years.
India’s national government adopted a comprehensive policy strategy for enabling EV transformation in 2013. Today, almost all Indian states and union territories have adopted or announced additional EV policies of their own. India’s states possess invaluable knowledge of local circumstances and steering mechanisms, thus positioning them to adopt efficient and effective policies that can support the national goal of achieving climate neutrality by 2070.
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Maharashtra is a leading Indian state in terms of EV policy ambition.
In 2021 Maharashtra expanded its goals to include EV penetration targets for almost all vehicle types and also set ambitious targets for charging infrastructure expansion. The state’s 2021 EV policy comprises around 40 policy instruments, which cover a wide range of policy dimensions. However, at the time of writing this report, several measures have yet to be implemented
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Maharashtra and other Indian states should set even higher EV targets to achieve full road transport electrification and to provide reliable investment conditions for the vehicle industry.
The introduction of the 2021 EV policy had a considerable effect on EV adoption rates. However, to achieve full road transport electrification, we would suggest the adoption of long-term targets for EV adoption in combination with policy to bolster the EV share in new vehicle registrations – not only Maharashtra, but in other Indian states. Such measures would have the additional benefit of improving the international competitiveness of Indian EV manufacturing.
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To be future proof, EV policy must take the circular economy into account, including the entire range of sustainability challenges in the EV lifecycle.
While this report provides suggestions for the state of Maharashtra with a view to material availability, industry transformation, EV market ramp-up, the convenient use of EVs, and circular vehicles, our recommendations can also be used as a basis for policy development in other Indian states. By addressing the full spectrum of challenges to EV sustainability, state governments can ensure policy that is efficient, effective, and comprehensive.
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Establishing institutions throughout India responsible for monitoring the implementation of state EV policy would help to ensure continued progress in the EV transformation.
We recommend the establishment of an independent council composed of representatives from research institutions and think tanks that would be tasked with monitoring the implementation of policy measures and their impact on EV registration rates. A council of this nature could also exercise an advisory function, consulting with state governments on policy matters.
Mapping electric vehicle policy for Indian states
Case study of Maharashtra
Preface
India’s geographic size and large population make the decarbonization of the transport sector a monumental task. Against this backdrop, state-level policy within India can serve as an important and effective complement to the federal government’s road-transport electrification efforts. In line with this insight, this report seeks to highlight opportunities for the further development of EV policies at the state level in India by conducting a case study of the state of Maharashtra. Based in part on the extensive policy experience that has been gathered in India and other parts of the world over the past fifteen years, we present various options for the enhancement of policy to promote transport electrification at the state level in India.
Germany and India can look back on many decades of good relations and partnership. In 2022 both countries entered into new cooperative commitments that aim to support industrial development and climate action. Furthermore, as part of the International Climate Initiative, which is funded by the German Federal Ministry for Economic Affairs and Climate Action, Germany and India have been cooperating on the NDC Transport Initiative Asia, which is dedicated to the transformation of the transport sector.
We trust that the strong collaboration of the project partners and the governmental Think Tank NITI Aayog will provide additional impetus to all states to enhance their strategies. NITI Aayog has shown commendable skill and dedication as a thought leader and driver of sustainability in India, and we are pleased and honoured to support the work of NITI Aayog with this publication. We wish the states of India all the best in their efforts to advance the transformation of the transport sector.
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Mapping electric vehicle policy for Indian states
Case study of Maharashtra
All figures in this publication
National level policy initiatives for EVs in India
Figure 1 from Mapping electric vehicle policy for Indian states on page 7
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Status of Indian state EV policies
Figure 2 from Mapping electric vehicle policy for Indian states on page 9
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