Electric Vehicles in India

A decade ago, electric vehicles were 0.08% of India’s car sales. Today they are over 8%. This article covers India’s EV ecosystem: its growth, its schemes, and its manufacturing push.

A Decade of Growth, By the Numbers

IndEco0119

EV Share of Vehicle Sales, FY 2025-26

8.26%

up from 0.08% in FY 2015-16

~46x

Sales Growth Since 2016

52,718

Public Charging Stations (Jul 2026)

$84M

EV Exports, 2024 (from $1.2M in 2020)

2.3M

EV Units Sold, 2025

The long arc: FY22 marked a decisive inflection point. Adoption had crept upward for years, then accelerated sharply, driven mostly by two- and three-wheelers.

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📑 Contents

1Must Know
2Good to Know
3Test Yourself
4Great to Know
5Current Affairs

📌 Must Know

1. India’s EV Push Begins (2015)

India’s EV push began in 2015, with the National Electric Mobility Mission Plan (NEMMP) 2020 and the FAME India scheme.

2. FAME India’s Two Phases

FAME India ran in two phases: Phase I until March 2019, and Phase II until April 2024.

3. EV Sales Share Growth

EV sales grew from about 0.08% of vehicle sales in FY 2015-16 to 8.26% in FY 2025-26.

4. Units Sold, Vs the World

EV unit sales grew roughly 46 times since 2016, from about 50,000 units to 2.3 million in 2025. This outpaced the world’s roughly 20-fold growth over the same period.

5. Two- and Three-Wheelers Lead

Growth has been driven mostly by two-wheelers and three-wheelers, not passenger cars.

6. India’s 2030 Target

India’s stated target is 30% of vehicle sales electric by 2030, aligned with its 2070 net-zero commitment.

💡 Good to Know

1. EV Exports Rise

EV exports rose from $1.2 million in 2020 to $84 million in 2024. Nepal, Indonesia, and Japan are the main export destinations.

2. Top EV-Selling States (2025)

In 2025, the top EV-selling states were Uttar Pradesh (over 4 lakh units, 18% share), Maharashtra (2.66 lakh, 12%), and Karnataka (2 lakh, 9%).

3. Charging Stations and e-Amrit

As of July 2026, India had 52,718 public charging stations, including 16,561 with fast-charging capability. The government’s e-Amrit tool helps drivers locate them.

4. India Electric Mobility Index

NITI Aayog launched the India Electric Mobility Index (IEMI) in August 2025. It scores states on 16 indicators across three themes: transport electrification, charging infrastructure, and EV research and innovation.

5. IEMI’s Frontrunner States

Delhi, Maharashtra, and Chandigarh are the IEMI’s top “Frontrunner” states.

6. Suzuki’s e VITARA

Suzuki’s e VITARA, launched in August 2025 at its Gujarat plant, is India’s first Made-in-India global Battery EV. It is exported to over 100 countries, making India a global EV manufacturing hub for Suzuki.

7. EV Startups and Investment

India now has roughly 400 EV startups. The sector raised over $1.4 billion in FY 2025, about 27% more than in 2024, with Delhi the top city for EV investment.

Test Yourself

🚀 Great to Know

1. PM E-DRIVE Scheme

PM E-DRIVE (₹10,900 crore, launched 2024, Ministry of Heavy Industries) targets over 28 lakh EVs. It includes ₹4,391 crore for 14,028 e-buses across nine major cities, ₹2,000 crore for public charging stations, and ₹780 crore to modernise testing agencies.

2. PM e-Bus Sewa-PSM

The PM e-Bus Sewa-Payment Security Mechanism (2024) supports 10,000 e-buses through a public-private partnership.

3. SPMEPCI

SPMEPCI (2024) requires EV passenger-car manufacturers to invest at least ₹4,150 crore. It also requires them to raise Domestic Value Addition from 25% to 50%, by year five.

4. PLI-Auto Scheme

The PLI-Auto Scheme (2021) had disbursed ₹2,377.56 crore in cumulative incentives by January 2026, of which ₹2,319.88 crore went to EV manufacturers.

5. PLI-ACC Battery Storage

The PLI-ACC Battery Storage Scheme (2021, ₹18,100 crore) targets 50 GWh of cumulative battery capacity, with its performance phase running from 2025 to 2029. Batteries make up 35-40% of an EV’s total cost, the single largest component. That’s why domestic ACC manufacturing matters so much for cutting vehicle prices.

6. State-Level EV Policies

As of December 2025, 29 states and Union Territories had notified their own EV policies. These offer capital subsidies of 15-25%, SGST reimbursement of up to 100%, and a concessional 5% GST rate.

7. CAFE Fuel-Efficiency Norms

Upcoming CAFE fuel-efficiency norms will keep tightening. CAFE III (2027-2032) targets 91.7 g CO2/km, and CAFE IV (2033-2037) targets 70 g CO2/km. Both push manufacturers further toward EVs.

8. Part of a Wider Clean-Energy Push

EVs are one part of a wider clean-energy push. See IndEco0121 — Solar Energy in India and IndEco0118 — GOBARdhan for the generation and biofuel sides of the same transition.

📰 Current Affairs

1. 5 Aug 2026 — PIB EV Ecosystem Backgrounder

Data5 August 2026 — PIB publishes a detailed backgrounder on India’s EV ecosystem. Titled “Roads Reimagined: The Rise of India’s Electric Vehicles Ecosystem,” it consolidates the sector’s growth, schemes, and manufacturing progress. It is the primary source for this article. (Source: PIB Research, Explainer ID 159436)

2. 4 Aug 2026 — PM eBus Sewa PSM Rollout

DataOn 4 August 2026, in Parliament, the government detailed the PM-eBus Sewa Payment Security Mechanism (PSM) Scheme. It covers 27,555 of a targeted 38,000 e-buses. This includes 10,000 under MoHUA, 14,000 under PM E-DRIVE, and 3,555 under State schemes. Only 523 e-buses were deployed, as of 10 July 2026. Odisha’s 400 allocated e-buses had zero deployment, as of 3 August. (Source: PIB)
PolicyThe same Parliament replies noted further EV incentives. GST on EVs and chargers stands at 5%. EVs also get green license plates. The Road Transport Ministry has advised states to waive road tax on EVs, cutting their upfront cost. (Source: PIB)
DataResponding to a separate question, the Heavy Industries Ministry gave its flex-fuel stance. It has no dedicated incentive policy for vehicles running on over 20% ethanol blend. It has also conducted no study on incentivizing flex-fuel vehicles. Separately, PLI-Auto’s Domestic Value Addition certificates rose to 155 products, as of 28 July 2026, up from 154 in mid-July. (Source: PIB)

3. 28 Jul 2026 — Parliament Reviews PM E-DRIVE

DataOn 28 July 2026, Parliament reviewed PM E-DRIVE’s on-ground progress. EV penetration jumped from 0.7% in FY2019-20, to 8.2% in FY2025-26. (Source: PIB)
DataOn charging infrastructure, ₹689 crore was approved for 6,562 chargers, as of 1 July 2026. That covers 3 oil companies and 9 states. Of India’s 52,718 public charging stations, 16,561 are fast chargers for cars; the Ministry of Power’s 2024 guidelines set interoperability standards for charging infrastructure, including battery swapping. Setting up a charging station remains an unlicensed activity. (Source: PIB)
DataUnder the scheme’s e-bus rollout, Surat and Hyderabad signed concession agreements for 600 and 915 buses, respectively. (Source: PIB)
DataSeparately, the government confirmed PLI-Auto’s full outlay: ₹25,938 crore, against a ₹42,500 crore investment target by March 2027. (Source: PIB)

4. 22 Jul 2026 — PM E-DRIVE Crosses 26.5 Lakh EVs

Milestone22 July 2026 — PM E-DRIVE crosses 26.5 lakh EVs sold. The government told the Lok Sabha that PM E-DRIVE had supported the sale of 26.54 lakh EVs, as of 22 July 2026. Its target is over 28 lakh. This total included 23.79 lakh electric two-wheelers and 2.68 lakh electric three-wheelers in the L5 category. Maharashtra led with 4.28 lakh EVs supported, followed by Uttar Pradesh (2.78 lakh) and Karnataka (2.67 lakh). (Source: ANI, via Ministry of Heavy Industries)

5. 21 Jul 2026 — Rare Earth Magnet Scheme

Policy21 July 2026: The Union Cabinet’s new Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, worth ₹7,280 crore, was detailed in the Lok Sabha. India currently imports all its sintered NdFeB magnets, despite finding 767 million tonnes of rare earth ore since 2015. (Source: PIB)
DataIndia’s projected rare earth magnet demand is expected to reach 8,220 MTPA by 2030. Electric vehicles alone are projected to need 3,250 MTPA, the single largest use case, ahead of wind turbines at 1,800 MTPA. (Source: PIB)

6. As of 31 Mar / 16 Jul 2026 — PLI-Auto Cumulative Figures

DataPLI-Auto’s cumulative figures, as of 31 March 2026, reached ₹44,326 crore in investment and 67,820 jobs, with ₹2,386.36 crore disbursed. As of 16 July 2026, 18 applicants held Domestic Value Addition certificates for 154 products, under the scheme’s 50% DVA requirement. (Source: PIB)

7. FAME-II Closes (2019-2024)

DataFAME-II, which ran from 2019 to 2024 with ₹11,500 crore in support, closed with 16.72 lakh EVs sold and 5,197 e-buses deployed. Under PM E-DRIVE, Hyderabad and Surat have signed concession agreements for their allocated e-buses, and 200 e-buses have been approved for hilly terrain in Jammu & Kashmir. (Source: PIB)

8. CERT-In Flags e-Rickshaw BMS Vulnerability

PolicyCERT-In flagged a Bluetooth vulnerability in low-cost e-rickshaws’ Battery Management Systems (BMS). Default or missing credentials let unauthorised users remotely power off moving vehicles. The Ministry of Heavy Industries has issued an advisory to industry bodies SIAM and ACMA. (Source: PIB)

9. Jun 2026 — Delhi’s ₹9,585 Crore Scrappage Scheme

SchemeJune 2026 — Delhi launches a ₹9,585 crore scrappage-linked EV scheme. The two-year scheme aims to replace about 2.07 lakh old commercial vehicles across Delhi-NCR with electric alternatives. (Source: Business Standard)

10. 2025 — National Mission on Manufacturing Names EVs a Seed Sector

Policy2025 — The National Mission on Manufacturing names EVs a key seed sector. The mission targets doubling manufacturing’s share of India’s GDP, from 12.9% to 25%, by 2035. (Source: Zee Business)

India’s EV market was valued at $3.71 billion in 2025. It is projected to reach $191.04 billion by 2034, a compound annual growth rate of nearly 55%. The government’s stated goal is 1.32 million charging stations by 2030.

India’s shift to electric vehicles is closely tied to its oil import bill. See IndEco0117 — Petroleum and Natural Gas Sector in India for the country’s oil and gas sector, including its import dependence and the new Samudra Manthan offshore exploration push.