Ministry of Heavy Industries (MHI) emerged as a key driver of India’s electric mobility push in 2025, recording significant progress across electric vehicles (EVs), advanced batteries, and domestic manufacturing under flagship schemes such as PLI-Auto, PM E-DRIVE and PM e-Bus Sewa.
At the centre of the government’s EV strategy is the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, with a total outlay of ₹25,938 crore. The scheme aims to strengthen India’s manufacturing ecosystem for advanced automotive technologies, particularly electric and hydrogen-based mobility. As of September 30, 2025, cumulative investments of ₹35,657 crore and determined sales of ₹32,879 crore had been achieved, generating nearly 49,000 jobs. Incentives under the scheme supported over 13.6 lakh EVs by December 2025, including electric two-wheelers, three-wheelers, four-wheelers and electric buses, with a mandatory domestic value addition of at least 50%.
A major milestone in 2025 was the rapid rollout of the PM E-DRIVE Scheme, launched with an outlay of ₹10,900 crore to promote EV adoption, charging infrastructure and domestic manufacturing. By December 31, 2025, incentives worth ₹1,703 crore had been disbursed, supporting the sale of more than 21.36 lakh electric vehicles. The scheme achieved its e-three-wheeler (L5) target well ahead of schedule, underscoring strong market uptake. Allocations under PM E-DRIVE also cover large-scale deployment of electric buses, charging stations, testing infrastructure and, for the first time, incentives for electric trucks.
Electric public transport gained momentum through large e-bus tenders concluded by Convergence Energy Services Limited (CESL), covering 10,900 electric buses across major metropolitan cities including Delhi, Bengaluru and Hyderabad. Complementing this, the PM e-Bus Sewa Payment Security Mechanism Scheme was notified to ensure financial security for OEMs and operators, covering over 38,000 e-buses for up to 12 years and encouraging private sector participation in urban electric mobility.
On the manufacturing front, MHI continued to strengthen the EV value chain through the PLI scheme for Advanced Chemistry Cell (ACC) battery storage, with a total outlay of ₹18,100 crore. The scheme targets 50 GWh of domestic battery manufacturing capacity, a critical enabler for large-scale EV adoption. By October 2025, investments of nearly ₹2,878 crore had been mobilised, with companies such as Ola Cell Technologies commencing pilot production at giga-scale facilities.
Further supporting EV manufacturing, the Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC) was notified to attract global investments, promote domestic value addition and position India as a hub for electric four-wheelers. The scheme allows limited imports at reduced duties while mandating long-term local manufacturing commitments.
Overall, 2025 marked a landmark year for India’s clean mobility journey, with the Ministry of Heavy Industries playing a central role in scaling electric vehicles, strengthening battery manufacturing, and enabling electric public transport—laying a strong foundation for the country’s transition to a low-carbon transport ecosystem.
