Punjab became the sixteenth Indian state to provide consumer incentives to its EV buyers. States with EV subsidies have shown 2X higher growth in EV volumes compared to states without them. With the FAME II policy ending soon, the onus now rests on state policies, such as the one introduced by Punjab, to drive India’s EV transition.

Punjab’s EV sales trends have plateaued over the last year. The introduction of subsidies for its e-2W and e-rickshaw segment, which together form 95 per cent of all EVs in the state, can be expected to boost the state’s EV volumes and penetration over the next year.