Designing a zero-emission vehicle sales regulation for two-wheelers in India

This paper explores the pivotal role of zero-emission vehicle (ZEV) sales regulations in enhancing the adoption of electric two-wheelers in India, highlighting the gap between current gasoline vehicle dominance and the ambitious electric vehicle targets set by the government. Despite electric two-wheelers emitting 33%–50% less greenhouse gases than their gasoline counterparts, they held only a 5% market share in the fiscal year 2022–2023, far from the 2030 target of 80%.

Our key findings include:

• A mandate in the form of a ZEV sales regulation can provide the necessary push for manufacturers to enter the market and build capacity at scale.
• There are multiple statutory frameworks that could provide the necessary authority for issuance of a ZEV regulation at the national or sub-national level.
• Key design elements to consider include eligibility criteria, credit allocation approaches, compliance flexibility features, and effective deterrent measures for non-compliance. This paper reviews evolution of key design elements from ZEV mandate programs globally with a contextual discussion on designing for the two-wheeler segment in India.

Attachments:

• [Fact sheet] Developing a mandate mechanism for the adoption of electric two-wheelers in the state of Delhi, India
• [Fact sheet] Developing a mandate mechanism for the adoption of electric vehicles in the state of Maharashtra, India

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