About this event

Did you know that agricultural tractors consume about 2.6% of India’s diesel? Even though the tractor industry reported an 8% annual growth in domestic sales in FY 24-25, only 16 out of 8 Lakh agriculture tractors registered in the Ministry of Road Transport and Highways of India s Vahan portal are classified as electric.

Electric tractors, with zero tailpipe emissions, offer a multifaceted opportunity to support India’s green growth by mitigating greenhouse gas emissions, reducing crude oil imports, and expanding exports. ICCT research from 2016 found that emissions such as particulate matter (PM) and nitrogen oxides from off-road vehicles (including tractors) could exceed those from on-road vehicles by 2030.

They also have the potential to reduce farming costs and improve farmer health by reducing noise, vibrations, and exposure to diesel fumes. According to some, e-tractors can also do the same stationary task as diesel tractors in less time with instant torque delivery and better precision and control. Four state governments in India offer incentives for electric tractors as a part of their EV policies, but there is negligible utilization as of May 2025.

So, where are the electric tractors in India? Who is making them? Are they ready to serve India’s agricultural demands?

In partnership with ET Auto, we will discuss the policy experience of e-tractor incentives, the technology and market readiness of India’s electric tractors, and knowledge gaps in the electric tractor policy discourse in India.

This piece originally appeared in the Hindustan Times.

Karnataka ranked third among all states in India in total new battery electric vehicle (BEV) sales (two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles) in calendar year 2024. That was enough for a 9% BEV sales share, higher than most states, and more than 5,700 new public charging stations were installed in Karnataka that year, the most of any state in the country. 

There’s more good news. The Clean Mobility Policy 2025-30 launched last month includes a special focus on developing the state’s manufacturing ecosystem for zero-emission vehicles, a term that includes BEVs and hydrogen fuel-cell electric vehicles (FCEVs). Already a major automobile manufacturing hub, Karnataka could, with the additional support from the policy, become a locus for innovation in clean automotive technologies and play a pivotal role in realising India’s ZEV transition goals. The new policy offers support across the ZEV value chain, from battery and cell manufacturing and recycling to charging infrastructure, hydrogen refuelling stations, and more. 

This comes in the form of incentives, including a capital investment subsidy, waiver of stamp duty, concessional registration charges, and reimbursement of the land-conversion fee. The policy also includes initiatives for developing the skills of the automotive workforce to align with the needs of the ZEV transition.

Governments in leading auto markets such as California and China supplement such incentives with supply-side regulations like sales mandates to ramp up ZEV adoption across segments. These mandates require manufacturers to sell a certain minimum percentage of ZEVs in their total vehicle sales over a period of time. California implemented its ZEV mandate in 1990 and leads the United States in ZEV deployment, with a market share of about three times the American average.

There are key advantages to ZEV sales regulations. Prior ICCT research found that they could increase the number of ZEV model choices available, as manufacturers would increase their offerings to attract consumers. In the United States in 2023, six of the top 10 states for passenger car electric vehicle (EV) sales (EVs are BEVs, FCEVs, and plug-in hybrid electric vehicles) had deployed ZEV mandates, and these states were home to about 50% of the total EV sales in the country. 

Additionally, each of the six had more than 70 different EV models available on the market. A ZEV sales regulation would increase industry-wide manufacturing and lead to economies of scale that would ultimately bring down the purchase price of ZEVs. This would also be likely to expedite the achievement of cost parity with internal combustion engine vehicles. In practice, ZEV mandates are met by manufacturers either through ZEV sales or the purchase of surplus credits from other manufacturers that overachieved on their sales targets under the regulation. 

Manufacturers slow to embrace ZEVs could risk losing market competitiveness as they transition. A ZEV sales mandate also offers some certainty to ZEV refuelling infrastructure providers about the number of vehicles expected on the roads in the future, and this facilitates investment planning well in advance. 

In India, implementing ZEV sales regulations requires legal authority through legislation or judicial intervention. For instance, in 2015, the Supreme Court directed that all taxis running in the National Capital Region be run on compressed natural gas by early 2016. Additionally, a well-established supporting institutional framework and coordination among key stakeholders is needed for successful implementation. The buildout of adequate charging infrastructure is crucial for scaling up ZEV deployment, and that will need coordination among and action from the government, DISCOMs, industry, and standardisation organisations. 

The alignment and support of industry bodies, technology and policy research organisations, government funding agencies, and financial institutions will also be needed for successful implementation of these regulations. Thus far, purchase and manufacturing incentives have been the driving force behind Karnataka’s ZEV transition. 

As the state forges ahead with its goal of becoming a ZEV manufacturing leader, supplementing these incentives with well-designed ZEV sales regulations can serve as a potent policy lever to accelerate the transition and bring benefits to both consumers and manufacturers. 

This piece originally appeared in Punjab Kesari in Hindi.

For many reasons, Haryana is the automobile hub of India. Its electric vehicle (EV) policy, which began in 2022, marked a significant step toward reducing transportation emissions. Now more than 2 years into the 5-year policy, with the Government of India having released the Production Linked Incentive (PLI) scheme for the National Programme on Advance Chemistry Cell Battery Storage and the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, there’s a prime opportunity for Haryana’s new government to make strides in promoting EV adoption, particularly for electric cars.

Here are four areas where extra focus could help maximize the potential for success:

1.  Grow the charging infrastructure network. While Haryana’s EV policy promotes setting up charging points in designated urban areas, implementation has been relatively sluggish. For drivers of electric cars in particular, public charging stations are needed in cities and along major highways to make them feel most confident. This is a learning from regions with the highest EV adoption rates, and one example is Norway’s successful model, which ensures charging stations every 50 km on main roads. Norway has one of the world’s highest ratios of chargers to vehicles with 30 public chargers per thousand electric cars and vans. A focus on standardized public charging stations compatible with various EV models and on installing fast chargers would reduce time that drivers spend waiting for a charger, particularly in high-traffic areas, parking lots, and commercial hubs. As we outlined here, charging infrastructure standardization is crucial because it reduces investment costs through economies of scale and significantly improves user experience.

In addition, Haryana can complement Central Government funding available for charging infrastructure in PM E-DRIVE with its own financial incentives for installing home and workplace chargers. Norway’s experience was highlighted at our India Clean Transportation Summit 2024, where Markus Nilsen Rotevatn from the Norwegian EV Association explained that a suite of policies have combined to make EVs in Norway so cost-effective that consumers are choosing them for that reason alone.

2. State manufacturing and research and development (R&D) initiatives for EVs. Haryana’s many strategic advantages—proximity to key markets, robust road infrastructure that provides reliable connectivity to other parts of India, dedicated EV parks, and skilled manufacturing workforce—mean it’s well positioned to become an EV manufacturing hub. The government can offer financial incentives to attract investment from local and global EV manufacturers, battery producers, and component suppliers. One avenue is special economic zones (SEZs) for EV production, which are designated areas that provide benefits like tax exemptions, streamlined customs processes, and access to superior infrastructure. These zones can enhance productivity, reduce operational costs, create job opportunities, and contribute to economic development. In Haryana, such SEZs could be complemented by R&D centres that focus on advancing EV battery technology and cost-effective EV components through public-private partnerships with local universities and technical institutions.

3. Financial incentive structures. Though Haryana’s EV policy includes purchase incentives for electric two-wheelers, three-wheelers, and cars, registration fee waivers, and road tax exemptions, there are ways to expand the financial benefits. Taking cues from successful global models in the United States, the United Kingdom, and China, Haryana’s government could collaborate with financial institutions to offer low-interest loans for EV buyers and give them more time to repay EV loans. Additionally, the government could create a financial risk management fund from the State Transport Fund for Accelerating EVs and support banks that lend to middle-class buyers and fleet operators. This could be especially effective now, as interest rates are not low. A fixed percentage of the State’s Transport fund could be allocated to things like providing purchase subsidies, developing charging infrastructure, and electrifying public transportation. The fund can also be used to provide free parking or reduced tolls.

4. New regulatory frameworks and building codes. Following models from Europe, Haryana could consider introducing low-emission zones (LEZs) in pollution-heavy cities like Gurugram and Faridabad. LEZs are geographically defined areas where access restrictions are applied to polluting motorized vehicles. The importance of LEZs was highlighted recently in a convening organized jointly by the Government of Haryana Transport Department and the ICCT. The Haryana Pollution Control Board mentioned LEZs in its Winter Action Plan 2024–25, but action on the ground has yet to commence. Updating building codes to require that new residential and commercial buildings be EV-ready and mandating that government departments transition to battery electric vehicles within a specified time frame are other ways to support the market.

Several supplementary measures would also support these priorities. From public-awareness campaigns that leverage multiple channels including television, social media, and community events, to educational programs in technical institutions that focus on EV technology and a robust battery recycling infrastructure with appropriate regulations, such measures work together to create a supportive ecosystem that enables widespread EV adoption.

Delivering on the vision in Haryana’s EV policy is expected to generate substantial environmental and economic benefits, including significant reduction in vehicular emissions, improved air quality across urban centres and avoided premature deaths through reduced air pollution, job creation across the EV value chain, and the positioning of Haryana as a competitive EV manufacturing hub in North India. The state EV policy complements the National Electric Mobility Mission Plan’s goal of 30% EV penetration by 2030 and strengthens India’s commitment under the Paris Agreement to reduce emissions intensity by 45% by 2030. While this agenda is ambitious, the long-term benefits to public health, employment, and economic growth make this transition not just desirable but imperative for Haryana’s sustainable future.

About this event

Did you know that the road transport sector contributes over 20% of global CO₂ emissions? In India, transitioning to zero-emission vehicles (ZEVs) presents a major opportunity to reduce both greenhouse gas (GHG) emissions and air pollution. Many major economies have already set regulations to achieve 100% ZEV or electric vehicle (EV) sales for new cars and vans by 2035. But what does this transition look like for India?

The ICCT’s latest study, “Vision 2050,” provides an updated global assessment of ZEV policies and market trends, analyzing their impact on EV sales, road transport energy consumption, and emissions through 2050. Accelerating ZEV adoption is the most promising strategy to cut CO₂ emissions from road transport and help meet the Paris Agreement goal of keeping global warming well below 2°C.

India’s ZEV adoption in the last year

In the last year from 2023 to 2024, the number of EVs sold in India increased by 27%. Three-wheelers are leading this transition, with a 57% EV adoption rate, and two-wheelers dominate the sales by the numbers, accounting for 59% of total EVs sold.

In partnership with ET Auto, this webinar will discuss how India and other countries are accelerating the transition to ZEVs, highlighting key successes and opportunities. Based on insights from the ICCT’s “Vision 2050” study, we will discuss how supply-side regulations (SSRs) and fiscal incentives have accelerated ZEV adoption across diverse vehicle markets. We will also examine how India could integrate international best practices to accelerate domestic EV uptake with key policies like fuel economy standards and EV fiscal incentives.

Join us to gain valuable insights on how India can drive towards a cleaner, more sustainable future.