Electric vehicle (EV) adoption in India has continued to accelerate, with penetration rising to 7.5% in FY 2024-25, according to official government data shared in the Lok Sabha. The Ministry of Heavy Industries reported that the number of registered EVs increased from 1.74 lakh in FY 2019-20 to 19.68 lakh in FY 2024-25, marking a steep upward trend driven by consumer interest, manufacturing expansion and policy support.
As per data from the Vahan portal, EV penetration has climbed consistently over the past six years—from 0.71% in FY 2019-20 to the current 7.50%, while internal combustion engine (ICE) vehicle registrations remained comparatively stable.
To accelerate EV adoption and reduce dependence on imports, the government has rolled out multiple schemes to strengthen domestic supply chains and manufacturing capacity.
Among the major initiatives highlighted are:
- Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-Auto): Approved in September 2021 with an outlay of ₹25,938 crore, this scheme supports manufacturing of Advanced Automotive Technology (AAT) components with a minimum 50% domestic value addition requirement.
- PLI Scheme for Advanced Chemistry Cell (ACC) Manufacturing: Cleared in May 2021 with a budget of ₹18,100 crore, this initiative aims to establish 50 GWh of ACC battery manufacturing capacity in the country.
- PM E-DRIVE Scheme: Notified in September 2024 with a financial outlay of ₹10,900 crore over four years, this program incentivises electric two-wheelers, three-wheelers, buses, ambulances and trucks. The scheme also includes support for EV charging infrastructure and improvement of vehicle testing facilities. Under this programme, phased manufacturing requirements mandate domestic production of critical EV components.
Minister of State for Heavy Industries Shri Bhupathiraju Srinivasa Varma shared the data and programme details in a written reply to the Lok Sabha.
With sustained policy momentum and growing interest in clean mobility, India’s EV sector is expected to continue its upward trajectory in the coming years.
