India witnessed a significant surge in EV sales in 2024, marking a strong year-on-year growth of 40% compared to the previous year. This growth was led primarily by electric scooters & electric three-wheelers, which contributed 94% of the total EV sales across all categories.
As per a joint report by non-government industry body FICCI and Yes Bank titled ‘Driving ZEV Transition – From Center to State’, Delhi is currently leading EV adoption in India. EV penetration in Delhi stood at 11.5% in FY24, followed by Kerala with 11.1%, Assam with 10%, Karnataka with 9.9% & Uttar Pradesh with 9.2%.
Sales in UP have been driven primarily by e-rickshaws (81% share of total EV sales in the state) while sales in Karnataka have been driven by electric two-wheelers. Delhi has accomplished high aggregate EV penetration driven by multiple segments. Let’s dive deep with a more detailed analysis about these top 5 states leading in EV adoption below:
Delhi
Delhi has achieved an EV penetration rate of 11.5%, driven by its adoption across multiple segments. Although Delhi was unable to meet its target of 25% electrification by 2023-24, it was the 1st to cross the 10% mark in 2022-23. Delhi’s EV Policy featured purchase subsidies & tax rebates for both private & commercial EVs. This included scrapping incentives for replacing old vehicles with EVs and support for retrofitting companies. Delhi Government offered direct financial aid for setting-up EV charging stations. Delhi was also the 1st to include battery swapping stations in its policy. Currently in Delhi, passenger electric three-wheelers (including e-rickshaws) account for 86% of all passenger three-wheeler sales and cargo electric three-wheelers account for 77% of all cargo three-wheeler sales. Electric buses account for 57% of all buses. Electric cabs account for an impressive 38% of all cabs. Electric scooters account for 9.85% of all two-wheelers. Electric cars account for 3% of all cars.
According to a survey conducted amongst EV owners by New Delhi-based think tank ‘Centre for Science and Environment’, many potential buyers are still deterred by the high initial cost of EVs. Longer charging times & connector compatibility issues at different charging stations were also cited as obstacles by a considerable portion of the respondents.
Kerala
Kerala is behind Delhi with an EV penetration rate of 11.1%. A front-runner in the electric two-wheeler & electric car segment in the country, Kerala’s success is attributed to its EV Policy which features incentives like free registration, road tax exemption, toll exemption & free parking for EVs. The government is investing in setting-up EV charging stations across the state to support the growing number of EVs.
Another big reason for Kerala’s good performance is the fact that fuel prices in the state are comparatively higher than other states. For example, while in other states petrol prices are below or equal to Rs 100 per litre, in Kerala, they are consistently above Rs 105.
Assam
The northeastern state of Assam comes in 3rd with an EV penetration rate of 10%. The state government of Assam is aiming for a 30% EV penetration by 2030.
Assam’s electric scooter & electric three-wheeler penetration rate has seen significant progress in recent years. As per a 2023 study by the Indian ZEV Research Centre at the University of California Davis, it has been predicted that Assam is likely to achieve 100% electric three-wheeler sales by 2025. The study further states that Assam will not only be the 1st Indian state to achieve this, but also the 1st state/province globally. In a different report, the same research centre proposes a common minimum policy approach and greater regional cooperation between states. For example, a coalition of north-eastern states in India to create a common EV Policy that can leverage economies of scale.
Karnataka
With a 9.9% EV penetration rate, Karnataka ranks 4th in this list. The state capital Bengaluru is leading Karnataka’s EV growth, with EV registrations growing annually at a rate of 150%. The city is projected to have 23 lakh EVs by 2030.
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Karnataka is 2nd in the country in electric two-wheeler & electric car penetration (behind Kerala). Among the 3.97 lakh registered EVs in Karnataka, electric scooters account for 3.11 lakh units. Karnataka also has the highest number of public EV charging stations in the country, according to the Bureau of Energy Efficiency (BEE).
Uttar Pradesh
Uttar Pradesh finds itself in this list due to the widespread use of e-rickshaws in several of its cities. Both cargo & passenger e-rickshaws account for 81% of all EV sales in the state. UP has also been one of the largest beneficiaries of central government’s FAME I & II schemes.
When it comes to the segmentation of EV sales in the state, electric three-wheelers (including e-rickshaws) dominate with an 82% share, followed by electric scooters at 16%.
HERE-SBD EV Index:
Apart from FICCI-Yes Bank report, a new EV Index by HERE Technologies & SBD Automotive, provides an in-depth look at how states & union territories are performing in their transition to electric mobility.
The 2024 HERE-SBD EV Index ranks Chandigarh as the leader, followed by Goa & Delhi. The Index specifically mentions that Delhi has made significant strides in ensuring that EV users have easy access to charging stations with 1 EV charger every 12.5km. This helps in reducing range anxiety, a common concern among EV users who are worried about running out of charge before reaching their destination or nearest EV charging station.
Conclusion:
In India, state EV policies are playing a vital role in guiding the country towards deeper EV penetration. While the national EV framework works towards providing demand incentives and encouraging domestic manufacturing for EVs and battery cells, the state policies focus on demand generation and creating a dependable EV charging infrastructure.
At present, more than 30 states and union territories in India have their own EV policies, and these have proven to be drivers of change. All states have targets in place to increase EV adoption across multiple vehicle segments and strengthen their charging & battery swapping networks. State EV policies may differ in terms of incentives & targets but they collectively aim to promote EV adoption by means of a support system for both customers & manufacturers.
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