India is rapidly shifting to electric vehicles (EVs). eMobility is now turning into a key driver of economic growth, energy security, and a cleaner future. EV sales have grown ~46x since 2016, showing strong consumer shift. Exports have surged from USD 1.2 million in 2020 to USD 84 million in 2024. This is positioning India as an emerging EV hub. Government schemes like National Mission on Manufacturing, PLI Scheme for Automobile & Auto Components Industry and PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE) are strengthening a more self-reliant eMobility ecosystem.
India’s Move Towards Electric Mobility
Daily commutes in crowded cities and last-mile connectivity in small towns are being fundamentally reimagined across India. At the core of this transition is electric mobility. This technological shift is becoming central to the country’s climate strategy and sustainable transportation vision. Propelled by Government incentives, rising environmental awareness, rapid technological progress, EVs have become a national priority shaping the future of the automobile industry.
India’s mobility transition is not just an environmental imperative but also an economic opportunity. It is reshaping one of its largest and most influential industries. This shift is emerging as a strategic lever to strengthen energy security, reducing dependence on fossil fuel imports, and driving an efficient, low-carbon growth pathway for the economy.
What is an Electric Vehicle (EV)?
An EV is a vehicle powered by an electric motor that uses energy stored in a battery. It can be recharged from an external power source. There are four types of EVs: Battery EVs (BEVs) that are fully electric; Hybrid EVs (HEVs) and Plug-in HEVs that combine an internal combustion engine and an electric motor; and Fuel Cell EVs (FCEV) in which electric energy is produced from chemical energy.
India’s EV Revolution: The Last Decade
India’s journey towards electric mobility began in 2015 with the launch of the National Electric Mobility Mission Plan and FAME scheme to incentivize EV adoption. This move was driven by strategic priorities including reducing the rising import bill on petroleum fuels, tackling worsening urban air pollution, and lowering greenhouse gas emissions from the transport sector, which accounts for ~9% of India’s total emissions.
National Electric Mobility Mission Plan (NEMMP 2020): The NEMMP 2020 outlines a strategic roadmap to accelerate the adoption and domestic manufacturing of EVs in India, with the twin objective of strengthening energy security and promoting clean, sustainable mobility.
Faster Adoption and Manufacturing of (Hybrid &) EVs in India (FAME India): Under the NEMMP 2020 framework, the FAME India scheme was launched in 2015 to drive EV adoption. Phase I continued until March 2019, followed by Phase II, implemented over five years until April 2024.
EV adoption has seen a multifold surge, growing from 0.08% in FY15-16 to 8.26% in FY25-26. A decisive turning point came in the post-COVID period in FY22. Supported by targeted policy incentives, enhanced subsidies, and improved vehicle availability, EV adoption entered a phase of accelerated growth. While early adoption was dominated by e-rickshaws, electric two-wheelers soon gained significant traction.
India in the Fast Lane: Scaling EV Growth Amid Global Expansion
Worldwide, consumer adoption of EVs is rising with competitively priced models and improved driving ranges entering the market. In India, this momentum is mirrored by strong policy support, rising sales and registrations, and a growing ecosystem of domestic manufacturing and charging networks.
India’s EV Scorecard – Rising Sales, Registrations and Exports: From a relatively small base of ~50,000 EVs sold in 2016, 2.3 million units have been sold in 2025, reflecting 46 times growth. India’s growth has outpaced global trends, where EV sales increased ~20 times from 918,000 in 2016 to 18.78 million in 2024.
In 2025, Uttar Pradesh emerged as the largest EV market with 4 lakh+ units representing 18% of national EV sales, followed by Maharashtra with 2.66 lakh units (12%) and Karnataka with 2 lakh units (9% of total sales). India’s EV penetration ramped up from one-fifth of global penetration in 2020 to over two-fifth in 2024. Much of this progress was driven by motorised two-wheelers (12.8 lakh units) and three-wheelers (8 lakh units) sold in 2025.
EV registrations have grown at a CAGR of over 62% in the past decade. After considerable domestic uptake, Indian EVs have begun making strong headway in international markets, with exports rising from USD 1.2 million in 2020 to USD 84 million in 2024. Top export destinations included Nepal, Indonesia and Japan.
Expanding Infrastructure: India’s public EV charging network is expanding rapidly. According to BHEL, 16,561 of the 52,718 public charging stations available as of July 2026 are equipped with fast EV charging facilities. The e-Amrit tool helps locate charging stations based on one’s location. Major industry players are actively enhancing charging infrastructure.
India Electric Mobility Index (IEMI): NITI Aayog launched the IEMI in August 2025, a first-of-its-kind framework tracking and comparing States and UTs in advancing electric mobility across 16 indicators. Delhi, Maharashtra, and Chandigarh have emerged as Frontrunners.
Domestic Manufacturing at Speed: Powered by Startups and AI
India is transitioning from an assembly-led market to a comprehensive EV manufacturing hub. Domestic production now covers battery packs, motors, drivetrains, power electronics, wiring, and charging equipment. Leading OEMs like Tata Motors, Mahindra, TVS, Bajaj Auto are expanding capacity. Global players like VinFast, Tesla, and major Korean and Japanese battery firms are exploring large-scale manufacturing in India.
A historic milestone was achieved in August 2025 with the inauguration of Suzuki’s first global strategic Battery Electric Vehicle (BEV), the “e VITARA,” a Made-in-India vehicle aimed to be exported to 100+ countries. With ~400 EV startups currently operating, they are emerging as central players in India’s evolving EV ecosystem. The advancing EV ecosystem is leveraging Artificial Intelligence to enhance the driving experience through voice-enabled navigation, real-time traffic insights, and intelligent route planning.
Rising Investment Momentum: India’s EV ecosystem raised over USD 1.4 billion in FY 2025, ~27% higher than 2024. EV manufacturers attracted the bulk of this funding, securing around USD 1.2 billion.
Strategic Policy Interventions for India’s EVs
The Government has been driving electric mobility since 2015 with multiple schemes. As of December 2025, 29 states and UTs had notified EV policies. Leading states like Tamil Nadu, Maharashtra, Karnataka, Gujarat, Haryana, Uttar Pradesh have become major EV hubs.
Delhi’s EV Policy: One of the most progressive EV policies in India, it aims to reduce vehicular emissions and improve air quality. In June 2026, the Government approved a comprehensive scheme with an outlay of ₹9,585 crore to replace around 2.07 lakh old commercial vehicles in Delhi-NCR.
National Mission on Manufacturing (NMM): The NMM (2025) identifies EVs as a key “seed” sector for innovation-led growth with ambitious targets for 2035, including doubling manufacturing’s contribution to GDP to 25%.
PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE): Notified in 2024 with an outlay of ₹10,900 crore, the scheme aims to accelerate EV adoption through demand incentives, support for domestic manufacturing, and charging infrastructure expansion. Under the scheme, 22.12 lakh EVs have already been sold as of January 2026. ₹4,391 crore has been allocated for 14,028 e-buses, with 13,800 buses allocated to seven major cities. ₹2,000 crore has been earmarked for EV public charging stations across the country.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This scheme (2024) provides payment security coverage to each bus deployed for up to 12 years. A total of 10,000 electric buses are to be deployed via Public Private Partnership (PPP) model.
Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI): This scheme (2024) promotes electric car manufacturing, mandating a minimum investment of ₹4,150 crore and at least 25% Domestic Value Addition by year three and 50% by year five.
PLI Scheme for Automobile & Auto Components Industry (PLI-Auto Scheme): Launched in 2021, the scheme provides financial incentives to promote domestic manufacturing. A cumulative incentive of ₹2,377.56 crore has been disbursed, with ₹2,319.88 crore allocated to EV manufacturers.
PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: With an outlay of ₹18,100 crore, the scheme aims to establish a cumulative ACC capacity of 50 GWh in India. Batteries account for 35-40% of an EV’s total cost, making domestic ACC manufacturing critical.
Low GST on EVs: EVs in India attract a concessional GST rate of 5%.
Driving Forward: India’s EV Growth Outlook
India is reshaping itself from an import-dependent market into a globally competitive hub for EV production. The focus is on complete domestic EV production through ‘Make in India’. India’s EV market, valued at USD 3.71 billion in 2025, is projected to grow to USD 191.04 billion by 2034 at a CAGR of 54.94%. The Indian EV battery market is likely to grow from USD 2.71 billion in 2025 to USD 15.90 billion by 2034 at a CAGR of 21.70%.
India aims for 30% of all vehicle sales to be electric by 2030, aligning with the global EV30@30 initiative. The EV ecosystem is strengthened with the establishment of 1.32 million charging stations across India by 2030. India is expected to emerge as an export hub for electric two-wheelers, compact EVs, battery packs, and key drivetrain components.
The Government is developing the next phases of Corporate Average Fuel Efficiency (CAFE) norms, CAFE III (2027–2032) and CAFE IV (2033–2037), proposing stricter CO₂ emission targets.
At The Threshold of Transformation
India stands at the cusp of a defining mobility transformation. Demand is surging, manufacturing is scaling up, and technological capabilities are advancing. Key drivers like better finance access, rising awareness, tech advances, reliable charging, and a skilled workforce are accelerating India’s EV transition. A reform-driven policy environment further provides compelling and durable advantage at scale. The road ahead will be shaped by deeper supply chain integration, accelerated localization of batteries, and a robust charging infrastructure. Together, these pillars are poised to define India’s leadership in the global EV landscape.
Disclaimer: This is an abridged version of the original article. All significant points and key messages have been retained. For complete details, please refer to the full article.
