Several states and one union territory (UT) have announced EV policies specifying fiscal, non-fiscal, and other incentives to boost EV adoption. However, vehicle electrification in India is still at its nascent stage, with EVs (both battery electric vehicles (BEVs) and plugin hybrid electric vehicles (PHEVs)) only getting 0.06% of the car market share through 2017. The availability of charging infrastructure is a major challenge that needs to be addressed in order to boost electric vehicle adoption in India. Charging infrastructure closely binds mobility to the electricity sector and has the potential to bring about major transformations in electricity distribution. The interlinkage of mobility and the electricity grid presents an opportunity as well as a challenge for power distribution companies (DISCOMs).

EV charging infrastructure can improve DISCOM revenue. At the same time, increased demand can have a significant impact on its cost of power procurement and network management. Therefore, EV charging tariffs need to be designed in a way that would allow the DISCOM to recover its costs, while making EV charging cost effective for users and provision of EV charging services a commercially viable business. This report investigates the linkages between EV charging tariffs and electric vehicle adoption, and provides recommendations on the same.