The Rise of EV Adoption in India in the Last 10 Years

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 the electric vehicle (EV). This technological shift is becoming central to the country’s climate strategy and sustainable transportation vision.

Propelled by Government incentives, rising environmental awareness, and 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. Further, it is reducing dependence on fossil fuel imports and driving an efficient, low-carbon growth pathway for the economy.

India’s EV Revolution: The Last Decade

India’s journey towards electric mobility began in 2015.

It was marked by the launch of the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of (Hybrid &) EVs (FAME scheme) to incentivise the adoption of EVs

The NEMMP outlined a strategic roadmap to accelerate domestic manufacturing and EV adoption in India with a twin objective of strengthening energy security and promoting clean, sustainable mobility.

Under the NEMMP framework, the FAME India scheme was launched in 2015 to drive electric vehicle adoption in India.

The FAME scheme offered buyer incentives, supported charging infrastructure, and supported manufacturing. Phase I continued until March 2019, followed by Phase II, implemented over five years until April 2024.

These schemes were driven by clear strategic priorities, including reducing the rising fuel import bill, tackling worsening urban air pollution and lowering greenhouse gas emissions from the transport sector, which accounts for ~9% of India’s total emissions.

A decisive turning point came in 2022, in the post-COVID period. Supported by targeted policy incentives, enhanced subsidies, and improved vehicle availability, EV adoption in India entered a phase of accelerated growth.

This period also marked a structural shift in the market. While early adoption during 2020–2021 was dominated by e-rickshaws, electric two-wheelers soon gained significant traction.

By 2025, electric two-wheelers were a leading segment, signalling a broader shift from informal, shared mobility to mainstream private and commercial adoption.

From a relatively small base of ~50,000 EVs sold in 2016, 2.3 million units have been sold in 2025. This reflects 46 times growth in India’s EV market.

India’s growth has outpaced global trends, where EV sales increased ~20 times- from 918,000 in 2016 to 18.78 million in 2024. 

EV registrations have grown significantly over the past decade, at a CAGR of over 62%, indicating rapid acceleration in EV adoption in India.

However, much of this progress was driven by motorised two-wheelers (12.8 lakh units) and three-wheelers (8 lakh units) sold in 2025.

On the infrastructure side, India’s public EV charging network is also expanding rapidly. Major industry players are actively enhancing charging infrastructure.

According to Bharat Heavy Electricals Limited (BHEL), 16,561 of the 52,718 public charging stations available as of July 2026 are equipped with fast EV charging facilities.

Indian Startups Are Expanding The Potential Of EVs

Beyond existing automobile players, Indian electric vehicle startups are catalysing charging infrastructure, improving battery-level innovation, promoting low-cost manufacturing, and offering data-driven solutions.

With ~400 EV startups currently operating in India, they are emerging as central players in shaping India’s evolving EV ecosystem.

These startups are also leveraging innovative technologies such as artificial intelligence (AI) to enhance the overall driving experience.

Features such as voice-enabled navigation, real-time traffic insights, and intelligent route planning are central to this.

AI is also supporting safer, more inclusive mobility by enabling voice-based controls, connected features, and accessibility-focused functions.

Scaling EV Growth Amid Global Expansion

Worldwide, EV adoption is rising. Many competitively priced models with improved driving ranges are entering the market. At the same time, EV charging infrastructure is expanding rapidly. 

Indian EV companies and startups, after considerable domestic uptake in recent years, have begun making strong headway in international markets. 

Exports have risen from USD 1.2 million in 2020 to USD 84 million in 2024. Top export destinations included Nepal, Indonesia and Japan.

In August 2025, India reached a historic milestone in its green mobility journey with the inauguration of Suzuki’s first global strategic Battery Electric Vehicle (BEV), the “e VITARA”.

The Made-in-India BEVs are intended for export to 100+ countries, including advanced markets such as Europe and Japan.

Strategic Policy Interventions for India’s EVs

While the Central Government has driven electric mobility since 2015 with multiple schemes for the auto industry, state governments are also pushing forward. 

States are emerging as key drivers of increasing EV adoption in India through progressive policies, charging infrastructure expansion, and strong investment support.

• As of December 2025, 29 states and UTs had notified EV policies, with 4 more in draft stages.
• Incentives like 15–25% capital subsidies, preferential land allotment, stamp duty waivers, and up to 100% SGST reimbursement reduce investor costs.
• Leading states like Tamil Nadu, Maharashtra, Karnataka, Gujarat, Haryana, and Uttar Pradesh have become major EV hubs, anchoring robust manufacturing ecosystems.

In June 2026, the Delhi Government launched one of the most progressive EV policies in India. It aims to reduce vehicular emissions and improve air quality in the city.

Delhi EV policy aims to replace old, high-emission trucks and buses in Delhi-NCR. With an outlay of ₹9,585 crore, the two-year scheme will support the replacement of around 2.07 lakh commercial vehicles.

The EV adoption in India is expected to create 30 million to 40 million jobs by 2030, driven by rising demand for specialised talent in engineering and energy systems, a new report says. 

India’s electric vehicle industry is entering its most employment-intensive phase, driven by policy reforms and consumer interest.

Demand for talent across rapidly expanding EV infrastructure is expected to grow by 45% over the next 10 years, according to the Adecco India report.

Road Ahead

The NMM (2025) identifies EVs as a key “seed” sector for innovation-led growth.

The Mission has ambitious targets for 2035. It aims to double the manufacturing sector’s contribution to GDP from 12.9% (2023) to 25%. 

Further, NMM intends to create 143 million jobs, whilst boosting merchandise exports to USD 1.2 trillion.

It strengthens India’s EV ecosystem by promoting advanced manufacturing, fostering technology development, and integrating EV production into global value chains.

Through targeted cluster-based interventions and policy support, NMM seeks to accelerate domestic EV manufacturing capacity.

The PM E-DRIVE Scheme, notified in 2024, is a key initiative of the Ministry of Heavy Industries (MHI).

The scheme aims to accelerate EV adoption in India through targeted demand incentives, support for domestic manufacturing, and expansion of charging infrastructure.

The scheme has an outlay of ₹10,900 crore and covers multiple segments including e-2Ws, e-3Ws, e-trucks, e-buses, and e-ambulances.

Under the Scheme, the Phased Manufacturing Programme (PMP) mandates domestic manufacturing of specified EV components.

The PM E-DRIVE Scheme aims to support over 28 lakh EVs; as of January 2026, 22.12 lakh have already been sold.

Upfront incentives have driven this growth by reducing purchase costs for consumers.

The scheme prioritises public transport electrification. The government has allocated ₹ 4,391 crore for 14,028 e-buses nationwide.

Out of this, 13,800 buses have been allocated to seven major cities, including Bengaluru, Delhi, Mumbai, Hyderabad, Ahmedabad, Pune and Surat.

Tenders for 10,900 e-buses allocated in Phase I have already been concluded. 

₹2,000 crore has been earmarked for nationwide EV charging Public Charging Stations (EVPCS).

Furthermore, ₹780 crore has been allocated to modernise and upgrade vehicle testing agencies under MHI.

The scheme is set to address critical challenges related to environmental pollution and fuel security while advancing sustainable transportation solutions.

It represents a crucial step toward a cleaner, more sustainable future for transportation in India.

The PM e-Bus Sewa–PSM Scheme (2024) provides payment security coverage to each bus deployed for up to 12 years.

These buses are typically deployed within two years of contract signing. A total of 10,000 electric buses will be deployed through a Public-Private Partnership (PPP) model (Government–private sector collaboration).

This aims to strengthen city bus operations in urban areas. The scheme encompasses a range of interventions and provides government support for bus operations, depot infrastructure, charging networks, and green mobility initiatives.

In February 2026, 50 electric buses were flagged off in Bhavnagar, Gujarat. Other cities, including Nagpur in Maharashtra, Chandigarh, and Guwahati in Assam, were also included in the initial rollout.

SPMEPCI scheme (2024) promotes electric car manufacturing. It mandates a minimum investment of ₹4,150 crore.

They must also achieve at least 25% Domestic Value Addition (DVA) by year three and 50% by year five.

The MHI launched the scheme with the vision of a cleaner, greener, and more self-reliant India.

By promoting EVs, it aims to cut air pollution, reduce oil imports and the trade deficit, and drive innovation, jobs, and economic growth.

PLI Scheme for Automobile and Auto Components Industry (PLI-Auto Scheme)

Wrapping Up

India stands at the cusp of a defining mobility transformation. Demand is surging, manufacturing is scaling up, and technology is advancing.

As a result, the country is quickly emerging as a global hub for R&D and EV manufacturing.

Key drivers like better access to finance, rising awareness, tech advances, reliable charging, and a skilled workforce are accelerating EV adoption in India.

A reform-driven policy environment further provides a compelling and durable advantage at scale.

The road ahead will be shaped by deeper supply chain integration, accelerated battery localisation, and a robust charging infrastructure.

Together, these pillars are poised to define India’s leadership in the global EV landscape.