EV policy
India’s New EV Policy, known as the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), launched in 2025, offers lower import duties (down to 15%) for global electric vehicle (EV) manufacturers who commit to a significant investment of at least ₹4,150 crore (approx. $500 million) in India to build a manufacturing facility within three years. This policy allows the import of up to 8,000 Completely Built Units (CBUs) of EVs priced above $35,000 annually, with targets for increasing local value addition to 50% within five years.
Extended Subsidies: FAME-II subsidies continue, reducing EV prices by ₹50,000 to ₹1.5 lakh for eligible vehicles.
Road Tax & Registration Fee Waivers: Many states, including Maharashtra, Delhi, and Karnataka, are offering exemptions.
Battery Swapping Policy: Faster adoption of battery-as-a-service for EV owners.
Charging Infrastructure Push: Over 20,000 new public charging stations to be installed across metro cities and highways by 2025.
Local Manufacturing Boost: Incentives for Indian and global EV manufacturers to set up plants in India.
Lower Purchase Cost due to subsidies.
Reduced Running Cost – electricity per km is far cheaper than petrol or diesel.
Resale Value expected to rise as demand for EVs increases.
Better Financing Options – banks and NBFCs offering low-interest EV loans.
Major automakers like Tata Motors, Mahindra, Hyundai, and MG are expected to launch more affordable EV models.
Global players like Tesla and BYD likely to accelerate India entry/expansion.
Boost to Make in India with local battery and EV component manufacturing.
Need for uniform state-level policies.
Faster charging network expansion in rural and semi-urban areas.
High upfront battery costs still remain a barrier.
However, by 2030, India aims for 30% EV adoption in the automobile market.
International policies promoting electric vehicles (EVs) include initiatives like the International Energy Agency’s Electric Vehicles Initiative (EVI), which has the EV30@30 campaign to increase global EV sales. Other policies focus on setting targets, like California’s Advanced Clean Cars II rule mandating 100% zero-emission vehicle (ZEV) sales by 2035, and providing financial incentives, such as Norway’s historical exemptions from taxes and tolls for EV owners, though these are being phased out as adoption grows. India is also implementing a policy to attract EV manufacturing, offering reduced import duties for companies that commit to significant investment and domestic value addition in India.
Europe: The EU mandates 100% zero-emission car sales by 2035, with stricter CO₂ limits from 2025.
United States: Tax credits up to $7,500 for EV buyers under the Inflation Reduction Act, effective through 2032.
China: Extended EV subsidies and aggressive rollout of battery swapping stations.
India: Continuation of FAME-II scheme with extended subsidies till 2025.
Japan & South Korea: Investment in hydrogen fuel-cell EVs alongside battery EVs.
Lower Purchase Costs – Subsidies and tax rebates make EVs more affordable.
Access to Charging Networks – Global expansion of fast-charging stations.
Eco-Friendly Travel – Contributes to reduced carbon footprint and cleaner air.
Resale Value Growth – EV resale values are projected to increase as adoption grows.
Global Automakers like Tesla, Volkswagen, BYD, Hyundai, and Tata Motors expanding EV portfolios.
Battery Production is shifting towards localized gigafactories across Europe, the US, and Asia.
Job Creation in green energy and EV tech industries.
Rising competition among automakers will bring affordable EV models worldwide.
Charging Infrastructure Gaps in developing nations.
Battery Material Shortage (lithium, cobalt).
Policy Uniformity Issues – Different regions have varied incentives.
High upfront costs despite subsidies in some markets.