The recently released India Electric Mobility Index (IEMI) 2024, developed by NITI Aayog in collaboration with Arthur D. Little, offers a powerful lens to evaluate the progress in electric vehicle (EV) adoption and ecosystem development across the country.
This first-of-its-kind dashboard assesses how Indian states and union territories are performing across a range of parameters, from policy execution to infrastructure roll-out and private sector engagement. Here’s an in-depth look at the key findings, insights, and road ahead from the IEMI 2024 report.
Why This Index Matters
India’s transport sector contributes to nearly 12% of the country’s energy-related carbon emissions, with over 90% of these coming from road transport. With rising urban congestion and deteriorating air quality, the transition to EVs is no longer optional—it’s essential.
The India Electric Mobility Index was developed to guide and accelerate this transition. It serves several purposes:
- Provides a comparative benchmarking of states’ e-mobility performance.
- Identifies best practices to drive peer learning.
- Encourages competition among states to scale up adoption.
- Offers a data-driven policy tool for stakeholders—government and industry alike.
The Methodology: A 360-Degree View
The IEMI is based on a robust and dynamic framework that evaluates states across three core pillars:
- EV Ecosystem Development – Measuring EV sales, charging infrastructure, and grid readiness.
- State EV Policy Implementation – Assessing the strength and execution of EV policies.
- Business and Investment Climate – Gauging private investment, startup activity, and manufacturing capacity.
These pillars break down into nine sub-pillars and 52 measurable indicators, covering everything from EV market share and battery recycling to R\&D investments and policy incentives.
Each state is scored, ranked, and classified as:
- Frontrunners – Leading the way with strong ecosystems.
- Performers – Showing solid progress.
- Aspirants – At early stages, needing stronger push.
India’s EV Story So Far
India’s electric vehicle story has rapidly evolved over the last five years. EV penetration has increased from a modest 1.8% in 2020 to 6.3% in 2023, with over 2 million EVs sold in 2024 alone. Two-wheelers (2Ws) dominate the EV space, accounting for nearly 60% of sales, followed by three-wheelers (3Ws), especially in commercial and last-mile delivery sectors.
Several government schemes have propelled this momentum:
- FAME II: Offers subsidies for e-2Ws, e-3Ws, e-buses, and charging stations.
- PLI for Advanced Chemistry Cells: Encourages domestic battery manufacturing.
- PM-eDRIVE: Supports electric public and commercial transport vehicles.
Yet, despite the policy push, progress is uneven. That’s where the IEMI 2024 offers valuable insight into the states that are pushing boundaries—and those falling behind.
Who’s Leading the Charge?
Among Level 1 (Mature) States, these emerged as top performers:
- Maharashtra: Strongest all-rounder, with robust EV policies, manufacturing hubs, and dense charging networks.
- Delhi: High 2W and 3W EV penetration, aggressive public transport electrification, and rich policy incentives.
- Karnataka: Strong EV manufacturing base, thriving startup ecosystem, and grid integration planning.
- Tamil Nadu: A hub for EV component exports and major recipient of FDI in EV sector.
Among Level 2 (Emerging) States, standouts include:
- Haryana: Comprehensive EV policy with fiscal and non-fiscal incentives.
- Punjab: Improving charging infrastructure and commercial EV adoption.
- Rajasthan and Odisha: Taking early steps in infrastructure and public e-mobility.
Key Trends Across the Nation
EV Adoption
- EV penetration reached 6.3% nationally.
- Delhi leads with over 13% penetration in some vehicle segments.
- 2W and 3W dominate the adoption curve, especially for urban commuting and last-mile delivery.
Charging Infrastructure
- India now has over 25,000 public EV chargers.
- Maharashtra, Karnataka, and Delhi are leading in deployment.
- Fast-charging infrastructure for heavy-duty and long-distance EVs is still lagging, especially in Tier 2 and 3 cities.
Battery and Supply Chain Ecosystem
- Battery localization is growing, but critical material dependency (like lithium) remains a bottleneck.
- PLI schemes are encouraging battery cell and pack assembly units.
- India’s battery stock is expected to reach 600 GWh by 2030, creating opportunities in recycling and second-life applications.
Public Transport Electrification
- EV buses and rickshaws are gaining momentum under FAME-II.
- Delhi, Gujarat, and Maharashtra have committed substantial e-bus fleets.
- However, operational challenges like range anxiety and charging time persist.
Investment and Innovation
- India has over 700 EV-related startups, with hotspots in Bengaluru, Pune, and Hyderabad.
- Total EV investments have surpassed \$10 billion.
- States like Tamil Nadu and Gujarat have attracted mega-investments in EV parks and battery gigafactories.
Challenges on the Road Ahead
Despite the gains, India’s e-mobility journey faces several structural and execution challenges:
- Infrastructure gaps in rural and peri-urban areas.
- High upfront EV costs despite falling operating costs.
- Limited R\&D and skilled workforce, especially in Tier-2 cities.
- Fragmented state policies with inconsistent execution timelines.
- Dependency on imports for critical battery minerals and technology.
Recommendations: Accelerating India’s EV Future
To unlock the full potential of e-mobility, IEMI 2024 offers several forward-looking recommendations:
1. Strengthen Policy Continuity
- Ensure long-term subsidy roadmaps.
- Harmonize central and state incentives to avoid overlap or confusion.
2. Expand Charging Infrastructure
- Incentivize private sector participation, especially in rural corridors.
- Develop fast-charging corridors on highways and freight routes.
3. Invest in Battery Innovation and Recycling
- Scale up local R\&D in alternative chemistries like sodium-ion and solid-state.
- Set up formal battery reuse and recycling policies.
4. Skilling and Workforce Readiness
- Launch dedicated EV skilling programs under Skill India and NSDC.
- Encourage industry-academia collaboration for advanced engineering skills.
5. Foster Startup and MSME Ecosystem
- Ease regulatory clearances.
- Enable green finance access to early-stage startups and fleet owners.
The Road Ahead
The IEMI 2024 is more than a scorecard—it is a strategic dashboard for India’s EV future. With continued policy push, active state engagement, and rising private sector interest, India is well-positioned to become a global leader in clean mobility.
Yet, achieving the ambitious 30% EV penetration by 2030, and eventually net-zero by 2070, will demand sustained effort, investment, and innovation. States that proactively embrace change and collaborate with industries will not only reduce their carbon footprint but also become economic powerhouses in the EV supply chain of tomorrow.
