States Have Become Labs and Engines of Growth in India's Electric Mobility Push

The ongoing military conflicts, tariff uncertainties and the disruption of trade have yet again exposed the vulnerabilities of nations that depend on fossil fuels.

For ambitious countries like India, where energy security and economic growth are deeply intertwined, these are not temporary crises but reminders that the future of mobility cannot remain centered on petroleum imports.

Electrification of power and transport are thus seen as an essential achievable.

India’s electric mobility journey mirrors this transition and since 2022, the country has expanded its cumulative electric vehicle (EV) sales from around 1mn to around 8mn in 2025. That’s an impressive growth even in the face of their generally higher upfront costs and the ever-present question of range anxiety.

Making a Statement

Yet, the fact that India’s states—Maharashtra, Gujarat, Tamil Nadu, Karnataka, Delhi and Uttar Pradesh—have consistently backed EVs shows that there is a clear push for sustainable transport.

For instance, Uttar Pradesh leads the country in electric three-wheeler (e3W) registrations at around 0.27mn cumulatively in 2025, a vital component of last-mile connectivity.

Maharashtra leads the country in attracting investments to set up EV manufacturing units.

Delhi, on the other hand, has one of the highest demand-side incentives for EVs, which have seen a further boost with the release of the Delhi EV Policy 2.0. It targets 95% of all new vehicles registered as electric by 2027, and it earmarks generous subsidies for various EV classes (including N1 goods carriers) as direct benefit transfers.

The national capital also plans to fully electrify its bus fleet, and the fact that the policy skips subsidies for hybrid drivetrains only reinforces its commitment to 100% electrification.

Naturally, these policies and investments cannot exist as wishful targets alone. Every EV customer must grapple with charge point availability and issues such as installing chargers in apartment complexes—which at times have invited opposition.

However, public opinion surveys have repeatedly communicated that private customers want to adopt electric alternatives for intra-city commutes. The same applies to businesses, such as delivery fleets, that ply predictable routes and are keen to take advantage of an EV’s significantly lower costs per mile.

So, the success of original equipment manufacturers that equally prioritise charging point access for private owners, and innovations such as swappable batteries and battery-as-a-service, are a reminder that enabling the right conditions will boost EV sales.

The TN Way

Tamil Nadu has adopted a different but equally consequential approach. Instead of just focusing on EV adoption, it has positioned itself as one of India’s premier electric-vehicle manufacturing destinations.

By integrating industrial policy with clean mobility, the state has attracted investments across vehicle manufacturing, battery production, and research and development.

Its neighbour Karnataka has also leveraged its long-standing strengths of technology, innovation and advanced manufacturing to cultivate an ecosystem that connects electric mobility with start-ups, software development and digital infrastructure. Bengaluru is a hub for electric two-wheeler (e2W) adoption, and the state was one of the first to release an EV policy, way back in 2017.

Support from the states has also brought in next-level EVs in the segment that sees the most sales in the country: 2Ws.

In the initial years, the majority of the e2W sales consisted of basic vehicles that prioritised functionality and just enough range to justify their purchase for daily commutes. This was done to keep their prices low, but of late, the confidence in the demand-side has meant that multiple premium offerings are slated for release by the end of 2026.

Several of them are high-end, performance e2Ws, which will cost well above ₹2 lakh, that will cater to the luxury end of the segment.

That e2Ws have made the shift from not just being commuter options but also aspirational products is a nod to the success of India’s vision for e-mobility.

Green Transport

A clear and achievable win remains the electrification of heavy transport. The segment generates around 40% of the country’s transport-related emissions. Thus, it is a prime candidate for alternatives.

India has already launched the National EV Highway Guidance Framework, under which 20 national highways that see high-volume traffic will be electrified in phases.

Stricter Corporate Average Fuel Economy norms are also under development, which is a nudge towards pushing for more electric trucks.

Also, the PM E-DRIVE scheme features ₹10,900cr in direct demand subsidies for N2 and N3 category electric trucks—a first-of-its-kind measure. So, the intent is evident and the uptake of the incentives will change the landscape.

Looking forward, therefore, there is much to be hopeful for. Our states have become both laboratories and engines of growth in the electric mobility sector, driving policy innovation and industrial strategy. Their effort to compete towards a common national objective is thus accelerating India’s transition to a more resilient mobility market. The domino effect this will put in place will only strengthen investments in the EV ecosystem, which will invite more progressive policies.

The writer is founder and director, Climate Trends