As Delhi enters the next phase of its EV policy, the challenge is to make the transition work at scale, say experts
Delhi will now have to look at systematic reforms rather than incentives-led policies that risk slowing the EV transition for the next phase of the capital’s EV policy, experts noted. Delhi has been India’s earliest adopter of electric vehicles (EVs).
This discussion took place at the India International Centre on “Driving Change: Shaping India’s Next Decade of Vehicular Emissions Reforms,” by the Energy Policy Institute at the University of Chicago (EPIC India).
Dhruba Purkayastha, who is the senior programme advisor at EPIC India, said, “The problem (pollution) that Delhi is facing is intergenerational, so therefore, if the Delhi government is looking at subsidies, we have to look at the longer-term subsidisation framework, which will yield returns for 20-25 years rather than short-term revenue neutrality.”
The first Delhi EV policy, introduced in 2020 for three years, has been extended multiple times but failed to deliver the expected boost in sales, and according to the news outlets, new EV Policy 2.0 is expected to roll out at the beginning of the new year.
A report has pointed out that over $266 billion is required by 2030 for vehicles and charging, and there is a requirement for innovation in low-cost capital, better loan terms, and risk-sharing mechanisms.
Need to look at the entire EV ecosystem and the consumer-centric policies
“The conversation needs to be changed from why EVs to what it would take to scale EVs,” said Dimpy Suneja, Manager, Rocky Mountain Institute (RMI) India, a non-profit think-tank which focuses on scaling renewable energy solutions. “Upfront incentives and subsidies have just focused on a single vehicle, and to truly scale it, you need to equip the entire supply chain so that not just the vehicles but even services related to them become accessible.”
Experts in the panel noted that Delhi has so far managed to crack EV implementation by framing electric mobility as a solution to the city’s air pollution problem, helping build political and public support. This contrasts with states like Tamil Nadu and Karnataka, where EV policies have primarily focused on attracting manufacturing and investment. In Delhi, the emphasis has been on the difference EV adoption can make to daily life and air quality for residents.
The national capital region faces air pollution risk throughout the year, which peaks especially in winters, and according to an analysis by the Centre for Science and Environment, vehicle emissions are the major contributor to the pollution.
The experts said that the policy narratives should be science-backed and narrative-backed, and it should be created keeping the consumers in the frame. Shekhar Jain, Executive Director, CII-ITC Centre of Excellence for Sustainable Development, said, “As the country is progressing, it is more of a consumption-based economy. Rather than focusing only on manufacturing or capex, consumption has to increase.”
A Long-term Investment
Experts also looked at the scale of the transition ahead. A report by Niti Aayog, “Unlocking a $200 billion Opportunity,” highlighted India’s massive EV market potential of $200 billion over the next decade. It also said the majority of this requires finances rather than subsidies.
Experts pointed out that there is a need for financing the transition beyond the subsidies. Suneja said, “As the government has made abundantly clear that they don’t have the level of money to support electrification. So the financier and the consumer have to come in to make the whole ecosystem viable.”
Experts emphasised that the EV transition is an investment that will pay back in the long term, and the government needs to look beyond short-term measures, which are only going to slow the process.
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