Accelerating electric cars in Haryana: Four opportunities for the new government

Authored by Lavnish Goyal, Researcher, ICCT India

This piece originally appeared in Punjab Kesari.

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.