India's electric vehicle (EV) sector is experiencing rapid growth, fuelled by government incentives, rising environmental concerns, and technological advancements. With initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, India aims to significantly increase EV adoption, revolutionizing its transportation landscape towards sustainability and innovation.
The government has notified the PM E-DRIVE scheme with a budget of Rs. 10,900 crore (US$ 1.30 billion), set to run from October 1, 2024, to March 31, 2026. It aims to boost electric vehicle adoption, charging infrastructure, and EV manufacturing in India.
Under the FAME-II scheme, Rs. 839 crore (US$ 98.1 million) was allocated for setting up EV public charging stations. Now, under the PM E-DRIVE scheme, Rs. 2,000 crores (US$ 233.8 million) have been earmarked to expand these stations nationwide, covering both urban and rural areas in April 2025.
The Indian electric vehicle (EV) market is poised for "strong and steady" growth through 2030 as companies increasingly shift focus to this segment, supported by robust government leadership.
India has established an objective to elevate the proportion of electric vehicle (EV) sales to 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two-wheelers and three-wheelers by the year 2030. This equates to an ambitious objective of 80 million EVs on Indian roads by 2030. Additionally, India strives for complete domestic EV production through the 'Make in India' initiative.
In 2023, the global electric vehicle market was valued at US$ 255.54 billion. It is forecasted to reach approximately US$ 2,108.80 billion by 2033, growing at a significant CAGR of 23.42% from 2024 to 2033.
The global electric vehicle (EV) market value is estimated to reach Rs. 6,692 Crores (US$ 782 million) in FY25.
Indian automakers will launch nearly a dozen new EVs in 2025, focusing on premium models, as India’s EV sales rose 20% despite slowing global demand, with a 30% target by 2030.
Sales of electric vehicles (EVs) in India saw a notable increase in January 2025, with a 19.4% MoM and 17.1% YoY growth, reaching 1,69,931 units.
The Bureau of Indian Standards (BIS) has launched two new standards, IS 18590: 2024 and IS 18606: 2024, designed to improve the safety of electric vehicles.
India's electric vehicle (EV) sales reached 1,752,406 units in FY24, showing a strong year-on-year growth of 40.31% compared to the previous year.
EV sales grew by 16.9% in FY25 to 1.97 million units, up from 1.75 million in FY24.
Electric passenger vehicles crossed the 100,000 units mark with 18.2% growth. E-2W registrations rose 21.2% to 1.15 million units, while E-3Ws saw a 10.5% rise to around 700,000 units in FY25.
The shift towards electric vehicles on a global scale will create fresh opportunities for automotive suppliers. The Indian EV battery market is projected to surge from US$ 16.77 billion in 2023 to a remarkable US$ 27.70 billion by 2028.
Electric vehicles (EVs) have the potential to make up more than 40% of India's automotive market. The main focus is on establishing a strong and reliable infrastructure, ensuring that home charging is both dependable and affordable. With over 700 electric vehicle startups operating in India, the industry's dynamic nature is evident.
In 2023, electric vehicle sales in India saw a significant increase of 49.25%, reaching 1.52 million units. Although the sector is still in its early stages, it is steadily gaining traction.
India is emerging as a prominent destination for sourcing auto components, with the industry exporting over a quarter of its production annually. Projected to be the largest electric vehicle (EV) market by 2030, India presents an investment opportunity exceeding US$ 266 billion over the next 8-10 years.
India’s auto component industry will see Rs. 25,000-30,000 crore (US$ 2.89-3.46 billion) investment in FY26 for capacity expansion and EV parts, after Rs. 15,000-20,000 crore (US$ 1.73-2.31 billion) in FY25, says ICRA.is planning to assemble EV battery packs and install 100 charging stations for EVs.
Tamil Nadu is set to receive around Rs. 50,000 crores (US$ 5.84 billion) in EV sector investments by 2025, aiming to generate approximately 150,000 jobs
Union Minister of Commerce & Industry, Mr. Piyush Goyal, launched Bharat Mobility Global Expo 2025, outlining India's vision to lead in EVs and target Rs. 8,65,000 crore (US$ 100 billion) exports through innovation and cost-competitiveness.
The automobile sector received a cumulative equity FDI inflow of about Rs. 2,48,682.50 crore (US$ 37.85 billion) between April 2000–March 2025.
The automobile sector received a cumulative equity FDI inflow of about Rs. 2,43,175.95 crore (US$ 37.21 billion) between April 2000 – September 2024.
The government increased the PLI allocation for automobiles and auto components to Rs. 3,500 crores (US$ 409 million) in FY25, up from Rs. 604 crores (US$ 70.6 million) in FY24.
Tata Motors signed an agreement with the Tamil Nadu government in March 2024, to establish a vehicle manufacturing facility in Ranipet near Vellore, with an investment of US$ 1.08 billion (Rs. 9,000 crore). Investment is anticipated to generate more than 5,000 job opportunities over a five-year period.
In December 2023, Kia disclosed plans to enhance its presence in India, intending to expand production capacity, sales network, and product range in response to increased market competition. This strategy involves the addition of 100 new sales outlets and boosting installed production capacity by 100,000 units.
India's automobile retail sales grew 9% in FY 2024-25, reaching 2.61 crore units, driven by strong two-wheeler and passenger vehicle demand, with three-wheeler and tractor sales rising 11% and 3%, respectively, as per FADA.
India's electric vehicle market is set to reach Rs. 20,00,000 crore (US$ 235.13 billion) by 2030, with EV financing alone growing to Rs. 4,00,000 crore (US$ 47.03 billion), driving massive job creation and industry expansion.
The electric three-wheeler (e3W) auto market, excluding e-rickshaws, has witnessed substantial expansion, particularly in the goods sector for last-mile delivery. Operating costs are significantly lower, around 55%, compared to traditional autos, driven by the expansion of e-commerce and a seamless transition to electric vehicles.
Electric vehicles have experienced a surge in registrations over the years, propelled by favourable government policies and a mission to reduce CO2 emissions.
As per the Ministry of Road Transport and Highways data, EV registrations made up 6.4% of total vehicle sales in India.
As of February 2024, there are 12,146 operational public EV charging stations nationwide, Maharashtra has the highest number of EV charging stations, followed by Delhi and other states. A recent Confederation of Indian Industry (CII) report emphasized the necessity of establishing at least 1.32 million charging stations in India by 2030 to facilitate the rapid growth of electric vehicles, requiring over 400,000 installations annually.
In FY25, India had 26,367 public EV charging stations, according to the Bureau of Energy Efficiency.
The Ministry of Heavy Industries approved a capital subsidy of Rs. 800 Cr. to three Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG) for setting up 7,432 EV charging stations. They also authorized 6,862 electric buses for use in intracity operations by cities, STUs, and state government entities. Out of 6862 e-buses, 3487 e-buses have been supplied to STUs, as of November 2023.
TATA.ev is launching 'Open Collaboration 2.0' to enhance India's EV charging ecosystem, aiming to increase charging points to over 400,000 in two years. The initiative, in partnership with leading CPOs, includes installing 30,000 new public chargers and introducing TATA.ev mega chargers for a better user experience.
A subsidy of Rs. 5,790 crore (US$ 693 million) has been granted to electric vehicle manufacturers for the sale of 1,341,459 electric vehicles under phase II of the FAME India Scheme. FAME II for EV Scheme was Commenced on 1st April 2019 with a total budgetary support of US$ 1.43 billion (Rs. 10,000 crore), 30% procurement of manufactured or processed products must be from SMEs. This phase primarily targets the electrification of public and shared transportation. It aims to provide demand incentives for 7090 e-buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. Additionally, the scheme supports the development of charging infrastructure. As of December 2023, electric vehicle manufacturers received a subsidy of US$ 637 million (Rs. 5294.00 crore) for selling 11,79,669 electric vehicles under Phase-II of the FAME India Scheme.
The government increased the automotive sector budget by 74%, allocating Rs. 7,484.61 crore (US$ 874 million), with Rs. 4,000 crores (US$ 468 million) dedicated to the PM E-Drive Scheme to enhance EV charging infrastructure.
Electric Mobility Promotion scheme with a US$ 60.18 million (Rs. 500 crore) budget will be operational from April 1 to July 31, 2024, aiming for effective implementation within this period, to enhance green mobility and stimulate electric vehicle manufacturing in the country, further measures will be taken to promote this sector. It will be applicable on electric two-wheeler (e-2W) and three-wheeler (e-3W). The Scheme supports 3,72,215 EVs, comprising 3,33,387 e-2Ws, and 38,828 e-3Ws (including 13,590 rickshaws & e-carts and 25,238 e-3Ws in L5 category), offering incentives exclusively for advanced battery-equipped vehicles.
The Ministry of Heavy Industries launched the PM E-DRIVE Scheme with Rs. 10,900 crore (US$ 1.28 billion) to boost India's EV ecosystem, promoting electric mobility and reducing fossil fuel reliance.
Major industry players are striving to improve electric vehicle charging infrastructure, Hyundai Motor India is enhancing accessibility to electric vehicles nationwide, expanding its ultra-fast EV charging network with 11 new stations strategically located in cities including Mumbai, Pune, Ahmedabad, Hyderabad, Gurugram, and Bangalore, as well as along major highways.
Ola Electric IPO to be the first auto company in India to launch an IPO in over two decades (20 years). It has an expected size of Rs. 8,500 crore (US$ 1.01 billion).
Indian conglomerate JSW Group is set to launch its own EV brand following a US$ 1.5 billion joint venture with China's SAIC Motor to produce MG-brand electric vehicles. JSW's new car plant in Aurangabad, Maharashtra, will focus on manufacturing vehicles under its own brand, aiming to contribute significantly to India's EV market
Yulu turned EBITDA positive in FY24, backed by strong growth and an ARR of Rs. 257 crore (US$ 30 million). With over 45,000 EVs on the road and plans to scale up to 100,000 by end-2025, its partnerships with Blinkit, Zepto, and Swiggy have boosted its presence in last-mile delivery
Mahindra and Mahindra is in talks with the Kerala government to establish an electric vehicle (EV) manufacturing facility in the southern state, renowned for its significant EV adoption.
In March 2024, Okaya EV, a prominent electric two-wheeler manufacturer, has launched "Ferrato," its premium electric vehicle brand, as part of its nationwide expansion strategy, they will prioritize high-end models.
In March 2024, Ola Electric, poised for an IPO, has emerged as India's top patent publisher for 2022-23, with 205 patents in EV and related technologies, surpassing rivals.
In April 2023, GreenCell Mobility revealed plans to invest US$ 181.59 million (Rs. 1,500 crore) to double the supply of EV buses in India.
In March 2024, Ola Electric has announced to introduce a consumer-focused electric autorickshaw named Raahi.
In February 2024, the Indian Army has proposed a gradual introduction of a select number of Electric Vehicles (EVs) at 'Peace Stations' nationwide. This initiative aims to embrace technological advancements, promote green energy, and diminish reliance on fossil fuels.
India’s mobility industry is set to exceed Rs. 51,92,400 crore (US$ 600 billion) by 2030, driven by EV adoption, with two-wheeler EVs reaching 35-40% and four-wheeler EVs hitting 15-17%.
In January 2024, Tata Passenger Electric Mobility Ltd (TPEM), a subsidiary of Tata Motors, unveiled its latest pure electric vehicle, known as the Punch.ev.
In December 2023, Indian Oil Corporation (IOC) inaugurated its inaugural battery-swapping station in Kolkata for electric vehicles (EV). The oil marketing PSU collaborated with Sun Mobility, affirming its commitment to advancing sustainable electric mobility solutions.
In August 2023, Adani TotalEnergies E-Mobility Limited (ATEL) disclosed a collaboration with all-electric cab aggregator, Prakriti E-Mobility (Evera), to deploy EV charging infrastructure, starting with a 200-point super hub in Delhi.
Fuelled by robust demand and governmental backing, Gujarat's Electric Vehicle (EV) landscape is experiencing rapid expansion. India's electric vehicle (EV) sales reached 1,752,406 units in FY24, showing a strong year-on-year growth of 40.31% compared to the previous year.
References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press Releases, Department for Promotion of Industry, and Internal Trade (DPIIT), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 2023-24, EY Parthenon Electrifying Indian Mobility.
Note: Conversion rate used in April 2025, Rs. 1 = US$ 0.012, * - Includes Electric vehicles and automobiles.
