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

The PM E-DRIVE scheme, launched in September 2024, aims to significantly enhance the adoption of electric vehicles (EVs) in India. With an outlay of Rs 10,900 crore over two years, it focuses on providing demand incentives for electric two-wheelers, three-wheelers, ambulances, and trucks. The scheme also supports the development of charging infrastructure, ensuring a robust ecosystem for EVs, thereby addressing key barriers to adoption such as range anxiety and infrastructure availability.

In FY25, electric two-wheelers (e-2Ws) led the charge in India's EV market, with sales surpassing 1.14 million units. This segment accounted for a significant 59% of total EV sales, highlighting the growing consumer preference for e-2Ws due to their affordability and convenience. The increase in e-2W sales is a strong indicator of the shift towards sustainable transportation in urban and rural areas alike.

Despite the addition of 25,202 public EV charging stations, challenges remain in expanding charging infrastructure in India. The average charger power remains at 33 kW, indicating that many new installations are not high-capacity units. Additionally, the ratio of battery electric vehicles to chargers has increased, revealing that EV adoption is outpacing infrastructure development, which could lead to accessibility issues for EV users.

State-level policies have significantly influenced EV adoption in India by providing tailored incentives and infrastructure support. For instance, states like Delhi and Karnataka have implemented robust EV policies that encourage registrations through subsidies and charging station installations. The HERE-SBD EV Index highlights that regions with supportive policies see higher BEV shares and charger densities, showcasing the importance of localized initiatives in driving EV growth.

The Indian EV market is projected to experience a compound annual growth rate (CAGR) of 40% through 2027, driven by government initiatives like the PM E-DRIVE scheme and growing consumer interest. With more manufacturers entering the market and improving battery technologies, EVs are expected to achieve price parity with internal combustion engine vehicles, further accelerating adoption across diverse segments including commercial and personal use.