Zero Emission Vehicle (ZEV) Mandate Policy Report

August 10, 2023

Why is it necessary to implement zero emission vehicle (ZEV) mandate policy as one of the key policy accelerators to attain an ambitious scale of electric vehicle markets in India. This policy question has become compelling as the global experiences have borne out its importance in fast pacing investments and markets for electric vehicles.

To put it simply, a ZEV mandate requires manufacturers to produce and sell a minimum specified number of ZEVs as a share of their overall annual sales in the market. This works like a supply mandate for the vehicle industry to produce and sell electric vehicles (EVs) that can be ramped up over time. This strategy is needed over and above the current practice of providing purchase incentives for the consumers to catalyse the market. Both demand and supply side mandates together can help to attain scale in a time bound manner.