India’s National Electric Mobility Plan

India’s National Electric Mobility Plan (NEMP) and EV Expansion (2024–2025)

India’s transition to electric mobility has gained unprecedented momentum in 2024–2025, driven by an updated National Electric Mobility Plan (NEMP) and robust government policies aimed at enhancing EV adoption, strengthening charging infrastructure, and securing battery supply chains. The plan reflects India's ambition to emerge as a global EV manufacturing hub while addressing critical challenges such as energy security, climate change, and technological self-reliance.

Background and Strategic Context

1. Launch and Evolution of the NEMP

   The National Electric Mobility Plan (NEMP) was first introduced in 2013 with a 10-year horizon, aiming to:

   • Promote electric vehicle adoption.
   • Reduce oil dependency and environmental pollution.
   • Establish a sustainable EV ecosystem.
2. Updated NEMP (2024–2030) – Strategic Focus

   The updated plan was approved by the Cabinet in February 2024 with enhanced targets and broader policy coverage, focusing on:

   • Electrification of public and private transport
   • Establishing a localized supply chain for EV components and batteries
   • Strengthening EV charging infrastructure
   • Supporting innovation in battery technology and sustainable mobility
   • Reducing greenhouse gas emissions through cleaner transportation

Key Policy Objectives and Targets of NEMP (2024–2025)

Key Policy and Regulatory Framework (2024–2025)

1. FAME III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles)
   • Announced in March 2024 with a total budget of ₹20,000 crore ($2.4 billion).
   • Increased financial incentives for:
     • Electric two-wheelers – Up to ₹25,000 per unit.
     • Electric three-wheelers – Up to ₹50,000 per unit.
     • Electric passenger cars – Up to ₹1.5 lakh per unit.
     • Electric buses – Up to ₹30 lakh per unit.
   • Expanded incentives for:
     • Electric tractors and commercial vehicles.
     • Battery swapping and leasing models.
     • Retrofitting of internal combustion vehicles into EVs.
2. Production-Linked Incentive (PLI) Scheme for Battery Manufacturing
   • Budget: ₹18,100 crore ($2.2 billion).
   • Target: 100 GWh production capacity by 2030.
   • Status (by 2025):
   • 30 GWh operational capacity established
   • Tata, Amara Raja, and Exide setting up large-scale lithium-ion battery plants
   • Focus on:
     • Lithium-ion batteries
     • Sodium-ion batteries
     • Solid-state batteries
3. State-Level EV Policies (2024–2025)

Target Area	Goal (By 2030)	Progress (By 2025)	Policy Instrument
EV Market Penetration	30% of total vehicle sales	18% achieved	FAME III subsidies, tax benefits
Two-Wheelers	80% EV market share	55% achieved	Direct subsidies, GST waiver
Three-Wheelers	40% EV market share	30% achieved	Financing support, registration fee waiver
Passenger Cars	25% EV market share	12% achieved	PLI for EV manufacturing
Electric Buses	150,000 on-road buses	40,000 deployed	State government subsidies
Battery Manufacturing Capacity	100 GWh	30 GWh	PLI Scheme for Advanced Battery Storage
Public Charging Infrastructure	1.5 million charging points	400,000 installed	NHAI and private partnership
Reduction in Oil Imports	25% reduction in oil dependency	8% reduction	EV adoption and biofuel integration
CO₂ Emission Reduction	50 million tons annually	15 million tons	Green energy integration

4. E-Bus Fleet Expansion
   • Under FAME III, India aims to deploy 150,000 electric buses by 2030.
   • By Q2 2025:

     40,000 electric buses operational nationwide.

     Major Contracts:

     • Tata Motors – 5,000 units
     • Ashok Leyland – 3,500 units
     • JBM Auto – 2,000 units
5. EV Charging Infrastructure Expansion

Initiative	Goal	Progress
NHAI Highway Charging	Install charging stations every 30 km	1,200 installed (2025)
Metro City Network	50,000 public charging points in metro cities	30,000 installed (2025)
Fast Charging Hubs	High-capacity charging hubs in Tier I & Tier II cities	500 hubs operational
Home Charging Infrastructure	500,000 home charging points	250,000 installed

6. Battery Recycling and Circular Economy
   • Guidelines for battery recycling and disposal issued in April 2024.
   • Focus on:
     • Recovery of lithium, cobalt, and nickel.
     • Closed-loop recycling for sustainable battery use.
     • Incentives for recycling companies.

Market Growth and Trends (2024–2025)

1. Two-Wheelers
   • Dominates Indian EV market – 55% of total EV sales.
   • Top Players:
     • Ola Electric
     • TVS
     • Hero MotoCorp
2. Passenger Cars
   • Market share reached 12% by 2025.
   • Top Players:
     • Tata Motors (market leader)
     • Mahindra
     • Maruti Suzuki
     • Hyundai
3. Three-Wheelers
   • Market share reached 30%.
   • Key Markets:
     • Delhi
     • Lucknow
     • Chennai
4. Public Transport
   • Share increased to 25%.
   • Focus on electric buses and shared mobility.

Challenges and Risks

Path to a Sustainable EV Future

India's EV market is on a strong growth trajectory, supported by government policies, private sector investments, and technological advancements. With a focus on domestic battery production, infrastructure expansion, and market-friendly policies, India is poised to become a global leader in electric mobility.