India's electric vehicle (EV) policies require a fundamental reframing to serve the larger public interest, according to experts and stakeholders. Past central schemes, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, which ended in March 2024, primarily subsidized personal EVs. However, these initiatives have raised critical questions about their utility for the broader public good.
Shortcomings of Past Policies
The FAME scheme, while successful in boosting EV adoption among private owners, largely overlooked public transportation and shared mobility solutions. Critics argue that subsidizing personal EVs benefits mostly affluent segments of society, while the majority of Indians rely on public transport, two-wheelers, or non-motorized modes. This has led to a skewed distribution of benefits and limited environmental impact relative to investment.
Need for a Public-Centric Approach
To maximize societal benefits, India's EV policies should prioritize electrification of public buses, taxis, and three-wheelers, which have higher utilization rates and greater potential to reduce emissions per vehicle. Additionally, investment in charging infrastructure for public use and incentives for shared mobility can accelerate adoption while ensuring equitable access.
Key recommendations include:
- Redirecting subsidies from personal EVs to public and shared transport.
- Developing interoperable charging networks in urban and rural areas.
- Promoting electric two-wheelers and three-wheelers for last-mile connectivity.
- Integrating EV policies with renewable energy goals to ensure clean charging.
Way Forward
A revised policy framework must balance environmental goals with social equity. By focusing on public transport and shared mobility, India can achieve cleaner air, reduced oil imports, and inclusive growth. The government is expected to announce a successor to FAME with a more public-oriented design later this year.
