India Electric Mobility Index (IEMI) 2025: Delhi Tops Rankings, National EV Share Reaches 8.25%

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NITI Aayog and WRI India (World Resources Institute India) released the India Electric Mobility Index (IEMI) 2025 — the second edition of India's premier state-level electric vehicle (EV) benchmark — in September 2026. Delhi ranked first with a score of 84 out of 100, improving from 77 in the inaugural 2024 edition. India's national EV market penetration reached 8.25% of all new vehicle registrations in 2025–26, with 2.5 million new EV registrations marking a 25% year-on-year increase.

Background

India's electric vehicle policy journey began formally with the National Electric Mobility Mission Plan (NEMMP) 2020, announced in 2013 with a target of 6–7 million EVs on road by 2020. The more structured FAME (Faster Adoption and Manufacturing of Electric Vehicles) Scheme launched in 2015 (FAME-I) and was scaled up in 2019 (FAME-II, ₹11,500 crore outlay). FAME-II concluded in 2024 and was succeeded by the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) Scheme (₹10,900 crore, 2024–26), which targets 24,791 e-buses, 1,72,000 e-three-wheelers, and 14,028 fast-charging stations.

The IEMI was first published in 2024 as a standardised measurement tool to compare state-level EV readiness and guide targeted policy interventions. It provides a data-driven framework for states and policymakers to identify gaps and accelerate adoption.

Current Developments

Key findings of IEMI 2025:

• National EV Penetration: 8.25% of all new vehicle registrations in 2025–26 were electric, up from approximately 6.6% in 2024–25.
• Total EVs on Road: 8.7 million as of 2025–26.
• New Registrations: 2.5 million new EVs in 2025–26 — a 25% year-on-year increase.
• Delhi leads with a score of 84, driven by e-bus fleet expansion, Metro-EV integration, and the Delhi EV Policy 2020.
• Only two large states — Maharashtra (78) and Karnataka (73) — feature in the top five; smaller UTs like Chandigarh (71) and Goa (65) score higher on a per-capita basis.

Top 5 States/UTs — IEMI 2025

Key Facts

• Index: India Electric Mobility Index (IEMI) 2025 — 2nd edition
• Publishers: NITI Aayog and WRI India
• Number of Indicators: 16, across 3 dimensions
• Assessment Framework:
  • Transport Electrification Progress — 50% weightage
  • Charging Infrastructure Readiness — 30% weightage
  • EV Research and Innovation — 20% weightage
• Official Dashboard: iemi.niti.gov.in
• India's EV30@30 aspirational target: 30% new private cars, 70% commercial vehicles, 80% two- and three-wheelers to be electric by 2030 (NITI Aayog)

Constitutional Provisions

• Article 21 — The right to life includes the right to a healthy environment (M.C. Mehta v. Union of India, 1987); reducing vehicular air pollution directly serves this fundamental right.
• Article 48A (Directive Principle of State Policy) — The State shall endeavour to protect and improve the environment and safeguard forests and wildlife.
• Article 51A(g) (Fundamental Duty) — Every citizen has a duty to protect and improve the natural environment including forests, lakes, rivers and wildlife.
• Seventh Schedule, Entry 20, List III (Concurrent List) — Economic and social planning, covering both central and state-level EV policy mandates.

Legal Framework

• Energy Conservation (Amendment) Act, 2022 — Mandated minimum EV procurement for designated consumers; empowered the Bureau of Energy Efficiency (BEE) to prescribe vehicle fuel consumption standards including for EVs.
• FAME-II Scheme (2019–2024) — Demand-side incentives for two-wheelers, three-wheelers, four-wheelers, and buses; ₹11,500 crore outlay; concluded March 2024.
• PM E-DRIVE Scheme (2024–26) — Successor to FAME-II; ₹10,900 crore; targets e-buses, e-trucks, e-ambulances, and 14,028 fast-charging stations.
• PLI Scheme for Advanced Chemistry Cell (ACC) Batteries — ₹18,100 crore to build 50 GWh of domestic battery manufacturing capacity.
• Battery Waste Management Rules, 2022 — Notified under the Environment (Protection) Act, 1986; mandates Extended Producer Responsibility (EPR) for battery manufacturers and importers; formalises collection and recycling chains.

Institutional Framework

• NITI Aayog — Apex policy think tank under the Prime Minister; co-publishes IEMI and coordinates EV policy across ministries.
• WRI India — Research institution; technical partner for IEMI methodology, data collection, and analysis.
• Ministry of Heavy Industries (MoHI) — Nodal ministry for EV manufacturing; administers FAME and PLI-ACC schemes.
• Bureau of Energy Efficiency (BEE), under the Ministry of Power — Sets energy performance standards for EV charging equipment and vehicles.
• Ministry of Road Transport and Highways (MoRTH) — Vehicle registration policy, AIS standards for EVs, permits, and road tax exemptions.
• International Energy Agency (IEA) — India participates in the EV30@30 Campaign and Clean Energy Ministerial.

Economic Dimensions

India's EV sector represents a major economic opportunity alongside climate benefits:

• The domestic EV market is projected to reach $100 billion by 2030, with an estimated 10 million jobs in manufacturing, services, and charging infrastructure.
• Import substitution: Every million EVs reduce crude oil import expenditure by approximately ₹5,000–6,000 crore annually at current oil prices.
• Battery localisation: PLI-ACC has attracted Ola Electric, Reliance New Energy, and global battery firms. Domestic cell manufacturing could reduce per-unit battery costs by 20–30%.
• EVs attract 5% GST versus 28% plus cess on mid-to-large Internal Combustion Engine (ICE) vehicles, creating near-term state revenue adjustments.

Banking and Financial Angle: RBI's priority-sector lending (PSL) guidelines include EV loans for individuals and EV charging infrastructure for MSMEs. NABARD and SIDBI have green-finance windows supporting rural EV deployments. Green bonds are increasingly used to fund large-scale EV charging infrastructure.

Environmental Dimensions

Transport contributes approximately 13–15% of India's total greenhouse gas (GHG) emissions. Electrifying the vehicle fleet is central to India's Nationally Determined Contribution (NDC) targets under the Paris Agreement:

• India's updated NDC (2022) targets a 45% reduction in emission intensity of GDP by 2030 over 2005 levels, and 50% electricity generation from non-fossil fuel sources by 2030.
• Delhi's vehicle fleet electrification has measurably contributed to improved Air Quality Index readings in the national capital.
• Life-cycle emissions of EVs in India depend on grid coal intensity. As India's renewable energy share rises (currently ~45% of installed capacity), EV carbon benefits improve significantly over time.
• The Battery Waste Management Rules, 2022 address the end-of-life battery challenge via EPR obligations for producers and importers.

Social Dimensions

• Inclusive last-mile mobility: E-rickshaws and e-three-wheelers — the largest EV segment by volume — directly benefit informal transport workers, many from economically weaker sections.
• Women's mobility: E-scooters and e-cycles reduce commute barriers for women in peri-urban and semi-urban areas where public transport is sparse.
• Rural electrification synergy: Off-grid solar EV charging at rural service centres supports agricultural communities; PM-KUSUM solar pump scheme creates complementary infrastructure.

International Relations

• India is a member of the Clean Energy Ministerial and Mission Innovation, both with dedicated EV tracks.
• The International Solar Alliance (ISA), co-founded by India, promotes solar-powered EV charging in developing nations.
• India participates in the Global EV Charter and the EV30@30 Campaign, aligning with G20 clean mobility commitments.
• Bilateral cooperation: India–EU partnership on battery technology and AIS-138 charging-standard alignment with IEC norms; India–Japan on battery materials supply chains; India–US under the Indo-Pacific Economic Framework (IPEF) Clean Economy pillar.

Challenges

• Charging infrastructure gap: India has approximately 25,000 public charging stations as of 2025–26 — one of the lowest per-EV ratios among comparable economies.
• Battery raw material dependence: India imports over 80% of its lithium, cobalt, and nickel requirements, primarily from China, Australia, Chile, and African nations. Domestic lithium extraction remains minimal.
• High upfront cost: Despite subsidies, an EV costs 25–40% more than an equivalent ICE vehicle on sticker price, though Total Cost of Ownership (TCO) over five years often favours EVs.
• Inter-state disparity: Large states such as Uttar Pradesh, Bihar, and Madhya Pradesh score below 40 in IEMI 2025, lagging on infrastructure and policy. Their populations will determine India's aggregate EV trajectory.
• Grid reliability: Unreliable power supply in rural areas creates charging uncertainty for last-mile EV users and agricultural communities.

Government Initiatives

• PM E-DRIVE Scheme (2024–26): ₹10,900 crore for e-buses, e-three-wheelers, and 14,028 fast-charging stations at public locations.
• PLI-ACC: ₹18,100 crore for 50 GWh domestic battery cell manufacturing capacity.
• GST Concessions: 5% GST on EVs, EV charging equipment, and key EV components.
• NHAI Mandate: Charging stations at every 25 km interval on national highways (target: 2025).
• Delhi EV Policy 2020: Interest subsidies, road-tax waivers, registration-fee exemptions, and scrappage incentives — cited as a model for other states in IEMI 2025.
• Battery Waste Management Rules, 2022: EPR framework ensuring batteries are collected and recycled by producers.

Way Forward

NITI Aayog's India Energy Security Scenarios 2047 and the Economic Survey 2025–26 point to the following priority interventions:

• Scale public charging to one charging point per three EVs — the international best-practice ratio.
• Mandate 100% electrification of government fleet vehicles by 2028.
• Implement a Critical Minerals Mission to secure lithium, cobalt, and nickel supply chains through bilateral mining agreements and accelerate domestic exploration of Karnataka and Rajasthan's lithium-bearing formations.
• Standardise charging protocols through AIS-138 alignment with IEC international standards to prevent market fragmentation.
• Extend PLI incentives to EV components — motors, controllers, and power electronics — beyond battery cells alone.
• The Parliamentary Standing Committee on Energy has recommended a dedicated National EV Mission with a ministry-level nodal body for inter-ministerial coordination.

Possible Mains Questions

1. "India's EV adoption remains concentrated in a few states and urban centres. Critically analyse the structural and policy barriers to an equitable electric mobility transition, and suggest a framework to bridge interstate disparity." (GS-III: Technology + Environment)
2. "Electrification of India's transport sector requires coordinated action across infrastructure, battery supply chains, finance, and urban planning. Examine how India's institutional framework can be strengthened to achieve EV30@30 targets." (GS-II: Governance + GS-III: Environment)

Possible Prelims MCQs

1. Which two organisations jointly publish the India Electric Mobility Index (IEMI)?
   (A) NITI Aayog and TERI   (B) NITI Aayog and WRI India   (C) Ministry of Heavy Industries and BEE   (D) BEE and WRI India
   Answer: B
2. What was India's national EV market penetration in 2025–26 as per IEMI 2025?
   (A) 5.5%   (B) 6.6%   (C) 8.25%   (D) 10.4%
   Answer: C
3. PM E-DRIVE Scheme is the direct successor to which scheme?
   (A) NEMMP 2020   (B) FAME-I   (C) FAME-II   (D) PLI-ACC
   Answer: C
4. The Battery Waste Management Rules, 2022 were notified under which Act?
   (A) Energy Conservation Act, 2001   (B) Environment (Protection) Act, 1986   (C) National Green Tribunal Act, 2010   (D) Solid Waste Management Rules, 2016
   Answer: B
5. The PLI scheme for Advanced Chemistry Cell (ACC) batteries has an outlay of:
   (A) ₹10,900 crore   (B) ₹11,500 crore   (C) ₹18,100 crore   (D) ₹6,003 crore
   Answer: C

Essay Dimensions

1. "Electric vehicles are necessary but not sufficient for India's clean air and climate goals."
2. "India's electric mobility transition — who wins, who waits, and who is left behind?"
3. "Battery supply chains: the geopolitical frontier of the EV revolution."
4. "From FAME to E-DRIVE: evaluating India's decade-long journey toward electric mobility."
5. "Urbanisation, electrification, and equity — rethinking India's transport future."

Interview Questions

1. Delhi consistently tops EV indices. What specific policy interventions have made it a model, and can they be replicated in states like Uttar Pradesh or Bihar?
2. India imports over 80% of its battery raw materials. How serious is this geopolitical vulnerability, and what concrete steps is the government taking to address it?
3. The shift from ICE to EVs will disrupt millions of jobs in the automotive and ancillary sectors. How should India manage this transition equitably?
4. Should India pursue a regulatory EV mandate similar to the EU, or continue with incentive-based policies? What are the trade-offs?
5. IEMI 2025 shows large states lag far behind small UTs. What governance reforms would specifically accelerate EV adoption in high-population, low-income states?

FAQ

What is the India Electric Mobility Index (IEMI)?

The IEMI is a composite index published annually by NITI Aayog and WRI India that measures state-level progress on EV adoption (50%), charging infrastructure (30%), and EV research and innovation (20%) across 16 indicators. The second edition, IEMI 2025, was released in September 2026.

Which state ranked first in IEMI 2025 and why?

Delhi ranked first with a score of 84 out of 100, driven by its comprehensive Delhi EV Policy 2020, large-scale e-bus deployment, exemptions on road tax and registration, and integrated Metro-EV infrastructure.

What are India's EV targets for 2030?

NITI Aayog's EV30@30 aspirational targets are: 30% of new private car registrations, 70% of new commercial vehicles, and 80% of new two- and three-wheelers to be electric by 2030. The PM E-DRIVE Scheme (₹10,900 crore) is the current primary implementation vehicle.

What is PM E-DRIVE and how does it differ from FAME-II?

PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) is the ₹10,900 crore successor to FAME-II (which had a ₹11,500 crore outlay). Unlike FAME-II, which focused on direct purchase subsidies for individual buyers, PM E-DRIVE targets fleet electrification (e-buses, e-trucks, e-ambulances) and public charging infrastructure, reflecting a shift from demand subsidy to ecosystem building.

Further Reading

• IEMI Official Dashboard — NITI Aayog
• PIB — PM E-DRIVE Scheme, FAME-II and EV Policy Notifications
• Ministry of Heavy Industries — FAME and PLI-ACC Schemes