Designing a Robust EV Policy for Indian States: Lessons from Maharashtra

India’s transition to electric mobility is entering a critical phase. As the country pursues net-zero emissions by 2070, its states must play a defining role in decarbonizing transport. The next wave of state EV policies must go beyond short-term incentives and embrace a long-term, lifecycle-based approach that supports market maturity, supply chain resilience, and infrastructure readiness.

With Maharashtra revising its State Electric Vehicle Policy (2021-2025) and other states updating or formulating their own EV strategies, this is the right time to re-evaluate what makes an effective and future-proof EV policy. By learning from Maharashtra’s experience, states can design robust, scalable EV frameworks that align with both India’s national goals and global best practices.

Key Pillars of a Future-Ready State EV Policy

A well-structured EV policy should not only set adoption targets but also create a self-sustaining ecosystem. The following elements—identified through policy analysis and Maharashtra’s case study—serve as a guiding framework for Indian states.

1. Establishing Long-Term EV Targets with a Clear Roadmap

Many state EV policies set short-term targets (2025-27) but lack a structured roadmap for 2030 and beyond. This creates uncertainty for investors, manufacturers, and infrastructure providers.

• States should define progressive EV penetration goals, aligned with national climate targets:
  • 2025-2030: 30-40% electrification across all vehicle segments
  • 2030-2040: Full transition of public transport and commercial fleets
  • 2040-2070: 100% zero-emission road transport
• Policies should explicitly include heavy-duty vehicles (HDVs), which contribute over 40% of transport emissions but are often overlooked in state EV policies.

Maharashtra’s next EV policy is expected to expand its timeline—a lesson that other states should incorporate to provide policy consistency and investor confidence.

2. Scaling Up Charging Infrastructure with Streamlined Approvals

Even as EV sales rise, charging infrastructure remains a bottleneck in many states. A structured rollout plan is essential to prevent charging demand from outpacing supply.

• States should implement single-window clearance systems to expedite approvals for private and public charging stations.
• Mandating EV-ready building codes can ensure new residential and commercial buildings include pre-installed charging infrastructure.
• Battery swapping stations should be prioritized for last-mile delivery and commercial fleet operators to reduce range anxiety.

Maharashtra, Delhi, and Karnataka have attempted structured charging infrastructure expansions, but execution remains inconsistent. States must ensure city-level planning with grid-ready charging networks.

3. Strengthening Grid Resilience and Renewable Energy Integration

EV adoption adds pressure on state electricity grids, and policies must factor in energy demand management.

• Dynamic time-of-use tariffs should be introduced to encourage charging during off-peak hours.
• Smart grid investments and Vehicle-to-Grid (V2G) technology should be explored to allow EVs to feed surplus power back into the grid.
• Policies should target 50% renewable energy-powered EV charging by 2030 to ensure that transport decarbonization does not create additional fossil fuel dependency.

Maharashtra’s next EV policy is expected to integrate grid management strategies, which other states can adopt based on their grid capacity and energy mix.

4. Supporting Local EV Manufacturing and Battery Recycling

States with automotive industries must ensure a structured transition from internal combustion engine (ICE) manufacturing to EVs.

• Incentivizing battery recycling and localizing EV component manufacturing will reduce dependency on imports.
• Forming material partnerships with mineral-rich states (Odisha, Jharkhand) can secure critical raw material supply chains.
• Workforce reskilling initiatives should be embedded within EV policies to ensure that traditional automotive jobs transition into EV-related employment.

Tamil Nadu and Karnataka have taken early steps in EV manufacturing, while Maharashtra aims to expand its supply chain incentives—offering a blueprint for states seeking industrial policy alignment with EV growth.

5. Balancing Fiscal Incentives with Regulatory Levers

Most state EV policies rely heavily on financial subsidies, but a more sustainable approach requires regulatory measures to phase out ICE vehicles gradually.

• Zero-Emission Vehicle (ZEV) mandates should require fleet operators, ride-hailing services, and logistics companies to electrify their vehicles.
• Emission-based taxation (e.g., higher registration fees for ICE vehicles) can push consumers towards EVs without additional state expenditure.
• Non-financial incentives such as priority parking, toll waivers, and dedicated EV lanes should be integrated into policy frameworks.

Delhi has introduced fleet electrification mandates, and Maharashtra is considering zero-emission zones (ZEZs)—a strong regulatory measure that other states should evaluate.

6. Institutionalising Implementation and Monitoring Frameworks

One of the most overlooked aspects of state EV policies is monitoring and enforcement. Policies often outline ambitious targets but lack dedicated tracking mechanisms.

• States should establish independent EV monitoring councils, consisting of government, industry, and research institutions.
• Quarterly progress tracking should be implemented via digital dashboards to assess infrastructure rollouts, vehicle registrations, and policy adoption rates.
• Stakeholder engagement platforms should be created to address challenges faced by manufacturers, charging operators, and consumers in real-time.

Delhi’s EV Cell is a strong model, while Maharashtra’s next policy is expected to introduce a formalized governance structure—a step all states should consider.

A Roadmap for India’s States to Lead the EV Transition

As states revise or formulate their next-generation EV policies, they must ensure comprehensive, future-proof strategies. The lessons from Maharashtra’s experience provide a strong starting point, but states must customize their approaches based on local industry strengths, energy availability, and urban planning needs.

A well-designed state EV policy must:

• Define long-term, phased targets (2025-2070) for full electrification
• Expand coverage to include heavy-duty vehicles and commercial fleets
• Ensure fast, coordinated charging infrastructure rollouts
• Align with grid stability and renewable energy integration
• Support local manufacturing, battery recycling, and workforce reskilling
• Balance financial incentives with regulatory frameworks
• Institutionalize strong governance, monitoring, and execution frameworks

By incorporating these critical elements, states can not only accelerate EV adoption but also future-proof their policies for long-term sustainability. Maharashtra’s upcoming EV policy revision presents an opportunity to set new benchmarks for Indian states, ensuring that transport electrification progresses in a structured, scalable, and resilient manner.

This integrated approach will help India achieve its climate commitments, strengthen its EV industry, and position itself as a global leader in sustainable mobility.

Read the full publication here: Mapping Electric Vehicle Policy for Indian States: Case Study of Maharashtra – Changing Transport

NDC Transport Initiative for Asia (NDC-TIA) is part of the International Climate Initiative (IKI). The German Federal Ministry for Economic Affairs and Climate Action (BMWK) supports this initiative on the basis of a decision adopted by the German Bundestag. It supports China, India, and Viet Nam as well as regional and global decarbonisation strategies to increase the ambition around low-carbon transport.