China’s Comprehensive EV Adoption Strategy
Since 2008-09, China has implemented extensive policies at national, provincial, and local levels to promote EV adoption and build domestic manufacturing capabilities. These policies encompass sales mandates, purchase subsidies, tax incentives, charging infrastructure development, and manufacturing incentives. As a result, EVs accounted for nearly 40% of new car sales in China in 2023. Cities like Shenzhen, Tianjin, and Zhengzhou have achieved a 100% electric bus fleet.
China aims to ensure that 45% of new vehicle sales are electric by 2027, with targets of 80% for new buses, taxis, and utility vehicles in pollution-sensitive areas by 2025. The government plans to electrify public transportation in over 30 cities, including taxis. Provinces such as Beijing and Guangdong have set ambitious goals to achieve a 40% share of EVs in new vehicle sales by 2030, while regions like Jilin and Hainan are ahead in phasing out diesel vehicles.
From 2009 to 2022, China invested approximately ₹23.4 trillion in EV purchase subsidies, with the amount per vehicle decreasing from ₹260,000 to ₹150,000. Additional purchase subsidies are offered by several provinces to further incentivize EV adoption.
India’s Evolving EV Landscape
India’s policy framework for promoting EVs mirrors some aspects of China’s approach but is evolving with promising opportunities. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme launched in 2015, along with the Electric Mobility Promotion Scheme (2024), has aimed to offset high purchase costs. Under these schemes, subsidies ranging from ₹5,000 to ₹20,000 per kilowatt were offered, amounting to about 10%-20% of the EV sales price. The Indian government has cumulatively spent over ₹11,000 crores since 2015, resulting in the adoption of more than 4.5 million EVs.
Currently, there are over 16,000 operational charging stations in India, bolstered by the collaborative efforts of the government and private sector. Production-linked incentive (PLI) schemes have also been initiated to support local manufacturing of EVs, components, and battery cells.
India is aggressively transforming its urban public transport bus fleet, deploying over 5,000 electric buses with the help of prominent initiatives. The PM-eBus service aims to introduce over 24,000 electric buses in the near future.
Challenges and Opportunities for India
While India’s states are enacting policies to drive EV adoption, many are not updated in line with evolving national commitments. For instance, Delhi’s purchase subsidies and fleet aggregation orders are pushing for aggressive EV sales, yet many other states lag behind in timely policy updates. Recently launched initiatives like PM e-Drive focus on advancing electric two-wheelers, three-wheelers, buses, ambulances, and even trucks. However, the exclusion of subsidies for electric four-wheelers—a segment already experiencing slow adoption—could hinder progress in this area.
As India adheres to its global EV30@30 commitment, the lack of specific targets and mandates, unlike China, leads to uncertainty for manufacturers, impacting the pace of EV adoption for electric cars and commercial vehicles.
Despite covering key aspects of supply, demand, and infrastructure development, India’s EV promotion policies are yet to match the scale and pace observed globally. To achieve immediate improvements in air quality through EV adoption, India requires ambitious adoption goals and mandates supported by city-level implementation programs.
With lessons learned from China’s robust strategies, India can enhance its efforts to accelerate EV adoption, ensuring a cleaner and more sustainable future.
