Ministry of Heavy Industries
azadi ka amrit mahotsav

INCENTIVES FOR ELECTRIC VEHICLES

प्रविष्टि तिथि: 09 DEC 2025 3:36PM by PIB Delhi

The year-on-year growth in Electric Vehicles (EV) penetration between FY 2020-2025 is as under: -

(Nos. in lakh)

Financial Year /Category

2019-20

2020-21

2021-22

2022-23

2023-24

2024-25

Registered ICE Vehicles

244.20

173.79

179.86

211.49

229.60

242.84

Registered Electric Vehicles (EVs)

1.74

1.43

4.59

11.83

16.81

19.68

EV Penetration

0.71%

0.82%

2.49%

5.30%

6.82%

7.50%

Source :Vahan Portal

Further, the Ministry of Heavy Industries has launched the following schemes for strengthening the supply chain resilience for domestic manufacturing:

  1. Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-Auto): Government on 15.09.2021 approved PLI-Auto Scheme, for enhancing India's manufacturing capabilities for Advanced AutomotiveTechnology (AAT) products with a budgetary outlay of ₹25,938 crore. The scheme proposes financial incentives to boost domestic manufacturing of AAT products with minimum 50% Domestic Value Addition (DVA) and attract investments in the automotivemanufacturing value chain.

  2. Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: Government on 12.05.2021 approved PLI-ACC in orderto promote manufacturing of ACC in the country with a budgetary outlay of ₹18,100crore. The scheme envisages establishing a cumulative ACC battery manufacturingcapacity of 50 GWh.

  3. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: PM E-DRIVE Scheme has been notified on 29.09.2024. The scheme has an outlay of ₹10,900 crore over a period of four years from 01.04.2024 to 31.03.2028 (except for e-2Ws and e-3Ws for which the terminal date is 31.03.2026). This scheme aims to incentivise sale of e-2W, e-3W, e-Ambulances, e-Trucks, and e-buses. The scheme also supports development of charging infrastructure and upgradation of vehicle testing agencies. Under the PM E-DRIVE Scheme, Phased Manufacturing Programme (PMP) mandates domestic manufacturing of specified EV components.

This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today.

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 TPJ/NJ


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