NITI Aayog Proposes National EV Policy as India Must Quadruple Adoption to Meet 2030 Target

India’s top policy think tank, NITI Aayog, has laid out an ambitious roadmap to transform the country’s electric vehicle (EV) landscape by shifting focus from consumer incentives to mandates, disincentives, and strategic policy interventions.

In its latest report titled "Unlocking a $200 Billion Opportunity: Electric Vehicles in India", released on Monday, NITI Aayog emphasises the need to realign the national EV strategy especially in high impact segments like buses, trucks, and urban freight.

From Incentives to Mandates: A Policy Shift

The Aayog has proposed a national electric vehicle policy with well-defined targets and phased mandates to accelerate adoption. This marks a significant policy transition from offering subsidies and incentives to enforcing regulations, disincentives for fossil-fuel vehicles, and mandates for specific EV segments.

The proposed approach includes:

• Phased EV mandates targeting high-potential areas such as public transport and commercial vehicles
• Blended finance mechanisms to reduce capital costs for operators in the commercial EV space
• A shift toward service delivery models over outright asset procurement, reducing upfront investment pressure
• A boost to R&D efforts to cut battery costs, increase energy density, and reduce dependency on imported rare earth materials

Focus on Urban Pilots and Commercial Vehicles

NITI Aayog has recommended launching pilot programs in 5 urban areas to aim for 100% electrification of buses, freight, and paratransit vehicles. These cities would act as model ecosystems demonstrating scalable clean mobility strategies.

The report also stresses the importance of scaling financial solutions like blended finance facilities to enable smoother EV adoption by commercial fleet operators, a segment traditionally deterred by high upfront costs.

India’s EV Target: A Steep Climb Ahead

India has set a goal of achieving a 30% EV share in total vehicle sales by 2030. However, as of 2024, EVs only accounted for 7.6% of total vehicle sales, equivalent to 18.78 million units.

According to the report, achieving the 2030 target will require a 22% increase in EV penetration over the next 5 years, calling for aggressive policy action, industry participation, and infrastructure development.

EV Stocks to Watch Amid Policy Push

With NITI Aayog calling for a nationwide EV policy and a shift toward mandates, several listed companies stand to benefit from increased adoption and supportive regulation. Key EV-related stocks to watch include:

• Tata Motors Ltd, a leader in India’s electric passenger vehicle space with the Nexon EV and plans for expanded EV offerings in both PV and commercial segments.
• Mahindra & Mahindra Ltd has a strong EV roadmap with new launches under the XUV.e and BE brands, plus ongoing investment in electric three-wheelers and commercial vehicles.
• Ashok Leyland Ltd, actively expanding its electric bus portfolio through its subsidiary Switch Mobility aligned with the government’s public transport focus.
• Olectra Greentech Ltd, a pure-play EV bus manufacturer and key beneficiary of urban bus electrification mandates proposed by NITI Aayog.
• Exide Industries Ltd and Amara Raja Energy & Mobility Ltd, major battery manufacturers investing in advanced lithium-ion battery facilities and R&D crucial to reducing EV costs and import dependency.

Read More: Best EV Stocks in India in August 2025 Based on 5Y CAGR: BEL, Himadri, Tata Motors & More.

Conclusion

NITI Aayog’s proposed national EV policy outlines a clear shift in strategy to accelerate India’s electric mobility transition. With ambitious targets and focused recommendations, its success will depend on timely execution, industry collaboration, and supportive infrastructure development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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