India’s EV Transition Gains Ground as New Mobility Index Links Electrification to Energy Security

India’s transition to electric mobility is increasingly becoming an issue of energy security and industrial competitiveness rather than simply an environmental programme, with NITI Aayog warning that the country’s dependence on imported crude oil could rise further as vehicle ownership expands.

NITI Aayog released the second edition of the India Electric Mobility Index, or IEMI, in New Delhi on September 16, providing a state-by-state assessment of progress in electric vehicle adoption, charging infrastructure, policy implementation and technological innovation. The latest edition measures developments during 2025 and allows states and Union Territories to compare their progress with the inaugural 2024 index.

Speaking at the launch, NITI Aayog Member Rajiv Gauba described the transition to electric mobility as an economic, environmental and strategic imperative for India’s Viksit Bharat 2047 ambitions. He pointed particularly to the country’s dependence on imports for nearly 89% of its crude-oil requirements, arguing that this exposure could become increasingly significant if conventional vehicle ownership continues to rise without a corresponding shift towards electric transport.

The issue is especially important because India’s automotive industry itself is a major part of the economy. Gauba said the sector contributes around 7.1% of GDP and supports nearly 1.9 crore jobs, meaning that India must simultaneously protect its industrial base while ensuring that manufacturers remain competitive as the global automotive market moves towards electrification.

Delhi Leads India’s Electric Mobility Index

The 2025 index places Delhi at the top nationally with a score of 84, followed by Maharashtra with 78 and Karnataka with 73. Chandigarh scored 71, while Goa also emerged among the stronger performers. Delhi’s score has increased from 77 in the previous edition, demonstrating continued improvement in an ecosystem that already had relatively high electric-vehicle adoption and policy support.

Among the large states, Maharashtra ranked first with 78 points, followed by Karnataka with 73. Tamil Nadu scored 61, Madhya Pradesh 59 and Odisha 55, while Andhra Pradesh recorded 52. Telangana, Haryana, Rajasthan and Uttar Pradesh each scored 51.

The index does not simply rank states according to the number of electric vehicles on their roads. It evaluates the broader ecosystem required to make electric mobility sustainable, including charging availability, state-level incentives, institutional mechanisms, research capability and innovation.

For this reason, two states with similar overall scores may have very different strengths and weaknesses. One may have relatively strong charging infrastructure but weaker electric-vehicle adoption, while another may have achieved faster vehicle electrification but still lack sufficient charging coverage or research activity.

National Performance Improves

The overall national picture improved between the two editions of the index. The highest state or Union Territory score increased from 77 in 2024 to 84 in 2025, while the median score rose from 36 to 40. Scores across all states and Union Territories ranged from 10 to 84 in the latest assessment.

This improvement indicates that the electric-mobility transition is broadening beyond a small number of early-adopting regions. However, the index also finds substantial differences between metropolitan areas, industrialised states, remote regions and the hill and northeastern states.

Infrastructure challenges are particularly visible in regions with dispersed populations, difficult terrain or smaller vehicle markets, where private charging companies may have less commercial incentive to install dense networks.

NITI Aayog consequently argues that differences between states should not necessarily be viewed as a weakness. Industrial structure, fiscal capacity, urbanisation and geography vary considerably across India, making a single electric-mobility strategy inappropriate for every region. The purpose of the index is instead to allow states to identify where they are falling behind and learn from approaches that have worked elsewhere.

Three Measures Determine the Score

The India Electric Mobility Index evaluates states and Union Territories across 16 indicators grouped under three major themes.

The largest component is Transport Electrification Progress, carrying a weight of 50%. It measures the actual adoption of electric vehicles while also examining state policies, incentives and initiatives intended to encourage consumers and commercial operators to shift away from internal-combustion vehicles.

The second component, Charging Infrastructure Readiness, carries a 30% weight and assesses the availability and enabling conditions for charging networks. The remaining 20% is assigned to EV Research and Innovation Status, which examines the innovation ecosystem supporting electric mobility.

This structure is important because simply increasing electric-vehicle sales does not create a complete mobility transition. Vehicles need dependable charging networks, while the long-term competitiveness of the industry requires domestic research, battery technology, manufacturing capability and new companies capable of developing specialised products and services.

States are consequently classified as Top Performers, Frontrunners, Emerging Performers or Aspirants according to their overall scores.

Charging Infrastructure Shows Uneven Progress

Charging infrastructure emerged as one of the areas where performance varies considerably across the country.

Karnataka recorded the highest Charging Infrastructure Readiness score nationally at 97, while six states and Union Territories reached the Top Performer category in this part of the index.

However, charging availability and electric-vehicle adoption are not always moving together. Some states have developed relatively strong charging infrastructure while vehicle penetration remains modest, while others are seeing EV sales rise faster than the infrastructure needed to support them.

This mismatch matters because consumer confidence in electric vehicles depends heavily on whether charging is available where vehicles are actually used. A large number of charging points concentrated in a few urban centres does not necessarily create a useful network for commuters, commercial fleets or intercity travel.

NITI Aayog therefore wants states to move beyond simply increasing the number of chargers and focus on whether charging stations are spatially well distributed, accessible and reliable.

India Now Has More Than 8.7 Million EVs on the Road

India’s electric-vehicle market has expanded rapidly from a very small base.

According to the IEMI report, EV penetration reached approximately 8.25% by 2025-26, compared with only around 0.5% in 2018. More than 8.7 million electric vehicles were operating on Indian roads, while nearly 2.5 million EVs were registered during 2025-26 alone.

Two-wheelers account for the largest share of registrations, reflecting the structure of India’s automobile market. Passenger three-wheelers have also become an important area of electrification, particularly in urban and peri-urban transport.

These segments matter because India’s electric transition is unlikely to follow the same pattern as Europe or the United States, where passenger cars dominate much of the EV discussion. In India, scooters, motorcycles, auto-rickshaws, buses and commercial fleets can potentially account for a substantial share of early electrification.

Electrifying vehicles that travel long distances every day can also produce greater fuel savings per vehicle than replacing a privately owned car that is used only occasionally.

Oil Dependence Gives EVs a Strategic Dimension

The strongest argument in the latest index concerns India’s dependence on imported petroleum.

India imports nearly 89% of the crude oil it requires, exposing the economy to global oil prices, geopolitical disruptions and changes in shipping and supply routes.

The transport sector is particularly important within this equation. According to the IEMI report, road transport accounts for around 70% of diesel consumption and almost all petrol consumption in India. Crude-oil imports reached approximately 249 million metric tonnes by 2025.

Vehicle ownership is also continuing to rise. Annual vehicle registrations increased from around two crore in 2020 to 3.1 crore in 2025-26, according to the report.

If this expansion occurs predominantly through petrol and diesel vehicles, India’s dependence on imported petroleum could increase alongside motorisation. Electric mobility offers a way to break at least part of that relationship because electricity can be generated from a much more diverse mix of domestic sources, including solar, wind, hydro, nuclear and domestic fossil fuels.

Electric vehicles do not eliminate energy requirements, but they shift a larger proportion of transport energy demand from internationally traded petroleum towards India’s domestic electricity system.

That makes vehicle electrification relevant not only to emissions policy but also to the country’s trade balance and vulnerability to external energy shocks.

West Asia Crisis Reinforces Energy-Security Debate

Gauba specifically referred to recent instability in West Asia while discussing the strategic case for electric mobility. He suggested that the present situation could become an inflection point for vehicle electrification in much the same way that the oil shocks of the 1970s pushed major economies towards greater fuel efficiency.

The comparison is significant because periods of oil-market disruption have historically accelerated changes in transport and energy policy.

For India, which imports most of the crude oil it consumes, a structural reduction in petroleum demand could gradually reduce the economic impact of future supply disruptions.

The benefits would take time to materialise because India’s vehicle fleet numbers in the hundreds of millions and petrol and diesel vehicles will remain on the road for many years. However, every new vehicle sold as an EV rather than an internal-combustion model can reduce incremental growth in future oil demand.

Government Support Crosses ₹92,000 Crore

The Centre has already committed substantial financial resources towards building India’s electric-mobility ecosystem.

Gauba said government support through programmes including FAME, PM E-DRIVE, PM e-Bus Sewa and the Production Linked Incentive schemes for automobiles, auto components and Advanced Chemistry Cell batteries totals more than ₹92,000 crore.

These programmes address different parts of the ecosystem. Vehicle incentives seek to narrow the cost gap between electric and conventional vehicles, while electric-bus programmes create demand for large-scale public transport electrification.

The Advanced Chemistry Cell programme is aimed at developing domestic battery manufacturing, while the automobile PLI programme supports advanced vehicle technologies and local manufacturing.

Taken together, these measures reflect a strategy that combines demand creation with domestic industrial development rather than relying entirely on imported electric vehicles and batteries.

Public Transport Could Deliver Greater Benefits

NITI Aayog has urged states to give particular attention to electrifying public transport in selected cities.

This approach can produce large benefits because buses operate for many hours each day and travel substantially greater distances than typical privately owned vehicles. Replacing a diesel bus with an electric model can therefore displace considerably more petroleum consumption over its operating life than replacing a low-mileage private vehicle.

Electric buses can also produce immediate local air-quality benefits because they eliminate tailpipe emissions along heavily travelled urban routes.

Road transport accounts for roughly 12% of India’s energy-related carbon dioxide emissions and is estimated to contribute around 18% of nitrogen-oxide emissions nationally, giving the transition a public-health dimension alongside the energy-security argument.

This is especially relevant in large cities where traffic emissions combine with industrial activity, construction dust and other pollution sources.

States Moving From EV Policies to Implementation

One of the clearest messages from the second edition of the index is that the policy-development phase of India’s EV transition is gradually giving way to an implementation phase.

According to NITI Aayog’s September 16 announcement, 29 of India’s 36 states and Union Territories have now notified EV policies.

The challenge is therefore increasingly about converting policy documents into actual vehicles, chargers, investments and industrial capability.

This distinction can be seen in the Transport Electrification Progress component, where only three jurisdictions — Delhi, Chandigarh and Maharashtra — qualified as Top Performers. Among the large states, Maharashtra was the only Top Performer in this category.

The gap indicates that simply announcing an EV policy does not guarantee high adoption. Incentives must be implemented effectively, charging networks need to develop, vehicles must be affordable and consumers need confidence that electric models can meet their transport requirements.

Madhya Pradesh Records One of the Biggest Improvements

The new edition also demonstrates how rapidly individual states can change position when policies and implementation improve.

Madhya Pradesh moved from 23rd position in the previous edition to seventh, one of the largest improvements recorded in the index.

The movement is significant because the leading states are not necessarily fixed permanently at the top. Improvements in policy, adoption, infrastructure or innovation can materially alter a state’s performance from one year to the next.

NITI Aayog also cautions that methodological changes introduced in the second edition have affected some rankings. Movement in position should therefore be interpreted alongside changes in actual scores rather than being treated as a simple league table.

Electric Mobility Is Becoming an Industrial Competition

The EV transition also has implications for India’s position in the global automotive industry.

China already derives more than half of its new passenger-car sales from electric vehicles, while EVs accounted for more than a quarter of new car sales in the European Union and roughly one-tenth in the United States during 2025, according to figures cited by Gauba.

As these shares increase, automobile companies that remain concentrated entirely on conventional engines risk losing access to some of the world’s most important vehicle markets.

For India, the challenge is particularly important because the domestic automotive industry is already a major manufacturing and employment base. The transition therefore cannot simply involve replacing imported oil with imported electric vehicles, batteries and power electronics.

India needs domestic capabilities across batteries, motors, power electronics, charging equipment, vehicle software, advanced materials and recycling if the EV transition is to strengthen rather than weaken the country’s industrial position.

Research and Innovation Remain Uneven

The IEMI’s third pillar, EV Research and Innovation Status, shows particularly wide differences between states.

The latest report found nine states and Union Territories in the Top Performer category for research and innovation, while 17 remained Aspirants.

This disparity reflects the concentration of universities, technology companies, research institutions, automobile manufacturers and startups in a relatively small number of industrial and metropolitan regions.

For states seeking to develop EV manufacturing rather than merely increase vehicle adoption, building research capability will become increasingly important.

Battery chemistry, charging systems, power electronics, thermal management and vehicle software are evolving quickly. States capable of linking universities, startups and manufacturers may therefore capture a larger share of the economic value created by the transition.

Charging, Vehicles and Innovation Must Advance Together

The second India Electric Mobility Index ultimately shows that India’s EV transition cannot be measured by vehicle sales alone.

A state can subsidise electric vehicles, but adoption will eventually stall if charging infrastructure remains inadequate. It can install chargers, but infrastructure may remain underutilised if consumers do not buy electric vehicles. Manufacturing can expand, but long-term competitiveness becomes difficult without research, skilled workers and innovation.

The three pillars measured by the index are therefore interconnected.

India’s improvement from a median score of 36 to 40 demonstrates that the broader ecosystem is progressing, but the wide spread between the highest score of 84 and the lowest of 10 shows how uneven the transition remains.

The next stage will consequently require a more targeted approach. Metropolitan regions may need to focus on congestion, public transport and charger density, while industrial states may prioritise manufacturing and research. Remote and northeastern states may require different charging models that account for lower vehicle density and difficult geography.

From Climate Policy to Energy Strategy

The significance of the latest index lies in this changing understanding of electric mobility.

Electric vehicles were initially discussed largely in terms of emissions and urban air quality. Those considerations remain important, but India’s heavy dependence on imported crude oil has added a much larger strategic dimension.

As vehicle ownership rises, continuing to base most road transport on petrol and diesel would increase exposure to international oil markets. Electrification provides an opportunity to shift part of that demand towards an electricity system in which India has substantially greater control over the energy sources being used.

At the same time, the global automotive industry itself is changing rapidly. India therefore faces two transitions simultaneously: reducing its dependence on imported petroleum while ensuring that one of its most important manufacturing industries remains competitive in an increasingly electric global market.

The second India Electric Mobility Index shows that the transition is already underway, but it also makes clear that progress is not uniform. Delhi, Maharashtra and Karnataka have established strong positions, while other states are advancing at very different speeds and through different strategies.

For India, the objective is consequently larger than putting more electric vehicles on the road. It is to build a transport system that consumes less imported oil, produces cleaner urban mobility and supports a domestic industrial ecosystem capable of competing in the technologies that will shape the next generation of automobiles.

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