Electric vehicle (EV) adoption in India has witnessed steady growth over the past few years, with total registered EVs reaching 19.68 lakh in the financial year 2024–25, according to data shared by the government in Parliament.
In a written reply in the Lok Sabha, Bhupathiraju Srinivasa Varma, Minister of State for Heavy Industries, presented year-on-year figures highlighting the increasing use of electric vehicles across the country. The data, sourced from the VAHAN Portal, shows significant growth in EV registrations over the past five financial years.
According to the figures, India recorded 1.74 lakh EV registrations in FY 2019–20, which dipped slightly to 1.43 lakh in FY 2020–21 before witnessing strong growth in subsequent years. Registrations increased to 4.59 lakh in FY 2021–22, followed by a sharp rise to 11.83 lakh in FY 2022–23 and 16.81 lakh in FY 2023–24, ultimately reaching 19.68 lakh in FY 2024–25.
The government has also introduced multiple policy initiatives aimed at strengthening domestic manufacturing and improving supply chain resilience in the electric mobility ecosystem. The Ministry of Heavy Industries has launched several schemes to support local production of advanced automotive technologies, battery storage systems, and critical EV components.
One of the key initiatives is the Production Linked Incentive Scheme for Automobile and Auto Component Industry, approved in September 2021 with a budgetary outlay of ₹25,938 crore. The scheme is designed to enhance India’s manufacturing capabilities in Advanced Automotive Technology (AAT) products by offering financial incentives to companies achieving at least 50 percent domestic value addition (DVA).
Another major initiative is the Production Linked Incentive Scheme for Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021 with an allocation of ₹18,100 crore. The program aims to establish a cumulative 50 GWh battery manufacturing capacity in India, strengthening the domestic battery supply chain for electric mobility.
To further accelerate EV adoption, the government launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E‑DRIVE) Scheme in September 2024. The scheme has a financial outlay of ₹10,900 crore and will run from April 2024 to March 2028, except for electric two-wheelers and three-wheelers, where the deadline is March 2026. It aims to incentivize the sale of electric two-wheelers, three-wheelers, ambulances, trucks, and buses, while also supporting the development of charging infrastructure and modernization of vehicle testing agencies.
The government has also introduced the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM), notified in December 2025 with a budgetary allocation of ₹7,280 crore. The initiative seeks to establish 6,000 metric tonnes per annum (MTPA) of integrated rare earth magnet manufacturing capacity in India, a key component in electric motors used in EVs.
In addition, the PM e‑Bus Sewa – Payment Security Mechanism (PSM) Scheme, launched in October 2024 with an outlay of ₹3,435.33 crore, aims to support the deployment of more than 38,000 electric buses across the country. The scheme provides payment security for operators in case of default by public transport authorities.
Another policy initiative, the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India, notified in March 2024, seeks to attract large-scale investments into EV manufacturing. The scheme requires participating companies to invest at least ₹4,150 crore and achieve 25 percent domestic value addition within three years and 50 percent within five years.
These initiatives collectively aim to accelerate electric mobility adoption while strengthening India’s domestic EV manufacturing ecosystem and reducing reliance on imported components.
