NSE Indices, NSE's index services subsidiary, on Thursday launched a new Nifty EV and New Age Automotive Index, as the adoption of Electric Vehicles (EVs) surges amid an increase in charging infrastructure.

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The EV Index aims to track the performance of companies which form a part of the EV ecosystem or are involved in the development of new age automotive vehicles or related technology, NSE Indices said in a statement.

The base date for the index is April 2, 2018, and the base value is 1,000.

“The Nifty EV & New Age Automotive India's first-ever Electric Vehicle Index aligns with NSE's vision to provide innovative indices in line with market trends,” said Mukesh Agarwal, CEO, NSE Indices.

The Nifty EV Index will facilitate creation of products which will create opportunities for asset managers to invest in the EV and “new-age automotive market, thereby providing an investment vehicle to investors,” he added.

The index will be reconstituted semi-annually and rebalanced on a quarterly basis.

According to NSE Indices, the new index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.

The government has been at the forefront of framing policies related to EV adoption in the country.

The aim is to promote India as a manufacturing destination so that EVs with the latest technology can be manufactured in the country and attract investments in the e-vehicle space.