NEWS – In a new policy push to meet India’s 2030 EV targets, NITI Aayog has proposed introducing “soft mandates” to boost electric vehicle (EV) adoption, especially as current incentive-led strategies show signs of slowing impact.

HIGHLIGHTS

India Lagging Behind Global EV Shift

• NITI Aayog’s report, “Unlocking a $200 Billion Opportunity: Electric Vehicles in India”, underlines the country’s slower adoption pace compared to global peers.
• EV penetration globally stands at 17%, while India lags at 7.6%.
• Rajiv Gauba, NITI Aayog member, admitted that while electric two- and three-wheelers have seen success, EV cars and trucks remain sluggish.

Why Soft Mandates Now?

• The report notes incentives alone won’t suffice to meet the 30% EV sales target by 2030.
• Recommends gradual, non-stringent mandates initially focused on:
  • Public transport buses
  • Government vehicles
  • Urban freight fleets
  • Paratransit vehicles

Avoiding Backlash Through Targeted Strategy

• NITI Aayog suggests avoiding blanket national mandates to prevent disruptions.
• Proposes working with large government departments, PSUs, and defence units to transition their fleets to EVs voluntarily.

Current EV Penetration by Vehicle Type

• Three-wheelers: 16%
• Two-wheelers: 5%
• Buses: 7%
• Cars: 2%
• Trucks: 0.07%