Evaluating Consumer-Oriented Government Policies for Promoting Electric Vehicle Adoption in the Indian Market

Electric Vehicles, Policy Analysis, Generalized Linear Model, India, Carbon Emission

India's current transportation system, dominated by conventional vehicles especially two wheelers, faces significant challenges, including severe air pollution, health hazards, escalating oil prices, and heavy dependence on oil imports. To address these issues, electric vehicles (EVs) have been introduced as a sustainable alternative. However, EV adoption in India remains modest compared to other nations, despite various government incentives. This study critically examines consumer-oriented policies, particularly the Faster Adoption and Manufacturing of Electric Vehicles (FAME), Phases 1 and 2, focusing on two-wheeler and four-wheeler adoption from 2015 to 2024. The findings reveal that the existing government initiatives are insufficient to drive substantial consumer adoption of EVs. The study also underscores the significant impact of CO₂ emissions and petrol prices as key determinants of EV adoption. In line with the analysis, policy recommendations are provided to enhance the effectiveness of existing measures and support policymakers in formulating strategies to accelerate EV penetration in India. These findings aim to contribute to achieving sustainable transportation and reducing India's environmental and energy challenges.