changeadminElectric vehicle (EV) production in India has seen a steady rise in the last 4-5 years across all segments – electric two-wheeler (e-2W), e-three-wheeler (e-3W), passenger vehicles and commercial vehicles.
In FY2024, the total annual production of electric vehicles was 1.68 million compared to 1.199 million in FY 2023 and 0.462 million in FY 2022. Between April 2023 to March 2024, total electric two-wheeler production was 948,420, followed by e-3W at 632,780, electric passenger vehciles at 92,170 and commercial vehicles at 8,660.
The overall electric vehicle pie is dominated by electric two-wheelers, followed by e-3W and passenger vehicles.
The government of India, through its Ministry of Heavy Industries, has formulated various schemes for strengthening India’s electric Vehicle ecosystem by supporting local manufacturing and providing initiatives to increase the production of EVs in India.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
In September 2024, the PM E-DRIVE Scheme was launched for the promotion of electric mobility and to reduce the dependence on fossil fuels in the country. The scheme has an outlay of Rs. 10,900 crore over two years from 01.04.2024 to 31.03.2026.
The Electric Mobility Promotion Scheme (EMPS) 2024 implemented for 6 months, from 01.04.2024 to 30.09.2024, is subsumed in the PM E-DRIVE Scheme.
This scheme aims to incentivise the sale of e-2W, e-3W, e-Trucks, e-Ambulances, and e-buses. The scheme also supports the development of charging infrastructure and upgrading testing agencies over two years, i.e. up to FY 2025-26.
Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-Auto)
PLI-Auto Scheme was launched in September 2021, to enhance India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products with a budgetary outlay of Rs. 25,938 crores for a period of 5 years.
Production Linked Incentive (PLI) scheme for manufacturing Advanced Chemistry Cells (ACC)
The government in May 2021 approved the PLI scheme for Advance Chemistry Cells to promote the manufacturing of ACC in the country with a budgetary outlay of Rs. 18,100 crores. The scheme envisages establishing a cumulative ACC battery manufacturing capacity of 50 GWh.
Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme Phase-II (FAME II) was implemented for 5 years with effect from April 2019 with a total budgetary support of Rs.11,500 Crore.
Under the FAME India scheme Phase-II, the Phased Manufacturing Programme (PMP) was introduced with the objective of domestic manufacturing of electrical vehicles, its assemblies/ sub-assemblies and parts/sub-parts thereby increasing the domestic value addition.
Wrapping Up
In the last few years, the Government of India has been actively working to revolutionize India’s electric vehicle ecosystem.
The government can address concerns regarding environmental pollution and fuel security. In addition, investment in the EV sector and associated supply chain can create significant employment opportunities along the value chain.
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