26 EV Fire Cases Reported in Last Three Years: MHI

As of FY 2024-25, India's electric vehicle penetration has reached 7.5%, marking a significant increase from previous years. This growth reflects a strong shift toward electric mobility, driven by government incentives and growing consumer acceptance. The penetration rate indicates the percentage of electric vehicles in overall vehicle registrations, highlighting the expanding market for EVs in India.

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme has played a crucial role in incentivizing EV purchases in India. Since its launch, over 18 lakh electric vehicles have received support under the FAME policy, significantly boosting sales and promoting infrastructure development. This government initiative aims to increase the adoption of electric vehicles through financial incentives and has directly contributed to the growth of the EV market.

The primary challenges hindering electric vehicle adoption in India include limited charging infrastructure, high upfront costs, and consumer concerns regarding battery safety and performance. Additionally, the availability of quality components and the need for widespread awareness about EV benefits are crucial for increasing market penetration. Addressing these issues is essential for fostering a robust electric mobility ecosystem in the country.

Government incentives, such as the Production Linked Incentive (PLI) scheme, are designed to boost domestic manufacturing of electric vehicles and components. These schemes encourage local production by providing financial support, thereby reducing import dependencies and fostering innovation in the EV sector. This strategic push helps create a sustainable ecosystem for electric mobility in India, essential for meeting future demand.

In FY25, India registered over 1.3 million electric vehicles, with the electric two-wheeler segment leading the sales at approximately 1.14 million units. This significant growth indicates a shift in consumer preferences towards electric mobility, largely driven by the affordability and practicality of electric two-wheelers in urban and rural settings.