EV Penetration in India Rises to 7.5 percent in FY25: Vahan

India’s electric vehicle (EV) penetration has increased consistently over the last six financial years, according to data sourced from the Vahan Portal, which shows that EV penetration rose from 0.71% in FY 2019–20 to 7.50% in FY 2024–25, reflecting a steady increase in the share of electric vehicles in overall registrations.

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To increase the use of electric vehicles and support local manufacturing, the government has introduced several incentive schemes in recent years. These schemes focus on making vehicles and batteries in India and expanding charging stations. The goal is to build a strong EV supply chain and make electric vehicles easier to use across the country.

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The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry was approved on 15 September 2021. It has a total financial outlay of Rs 25,938 crore and focuses on boosting domestic manufacturing of advanced automotive technology products. The scheme requires a minimum 50% domestic value addition for manufacturers to qualify for incentives.

The government approved the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage on 12 May 2021, with a total financial outlay of Rs 18,100 crore. The scheme targets the creation of 50 GWh of cumulative domestic battery manufacturing capacity.

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was notified on 29 September 2024. The scheme has a total outlay of Rs 10,900 crore and will run from 1 April 2024 to 31 March 2028. For electric two-wheelers and three-wheelers, the validity extends until 31 March 2026.

The scheme provides incentives for:

It also supports the development of public charging infrastructure and upgradation of vehicle testing agencies. A phased manufacturing programme mandates domestic production of selected EV components.

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