India’s electric vehicle (EV) production landscape has witnessed remarkable growth over the past five
years, underscoring the country’s commitment to sustainable mobility and reduced reliance on fossil fuels. As per data from the Society of Indian Automobile Manufacturers (SIAM), EV production across various segments has surged significantly, driven by government incentives, policy interventions, and growing consumer demand.
Five-Year Production Trends
The production of EVs in India has grown exponentially, particularly in the two-wheeler and three-wheeler categories. The following table highlights the total annual production of EVs across key segments (in thousands):
| Category | FY 2019-20 | FY 2020-21 | FY 2021-22 | FY 2022-23 | FY 2023-24 |
| Passenger Vehicles | 3.30 | 5.83 | 22.36 | 62.28 | 92.17 |
| Commercial Vehicles | 0.53 | 0.41 | 2.22 | 3.11 | 8.66 |
| Three-Wheelers | 143.83 | 91.97 | 185.38 | 404.88 | 632.78 |
| Two-Wheelers | 26.84 | 44.83 | 252.78 | 728.21 | 948.42 |
The two-wheeler category has led the charge, with production increasing from 26,840 units in FY 2019-20 to 948,420 units in FY 2023-24. Similarly, three-wheelers have grown substantially, making EVs viable for public and shared transportation.
Government Policies Driving Growth
India’s EV revolution has been catalyzed by government initiatives to bolster domestic manufacturing, promote advanced technologies, and encourage EV adoption.
Production Linked Incentive (PLI) Schemes
- PLI for Automobile and Auto Components: Launched in September 2021 with a budget outlay of ₹25,938 crore over five years, this scheme aims to enhance the manufacturing of Advanced Automotive Technology (AAT) products.
- PLI for Advanced Chemistry Cells (ACC): Approved in May 2021 with a ₹18,100 crore budget, this initiative targets the establishment of 50 GWh of battery manufacturing capacity, a critical component for EVs.
Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPCI)
Notified in March 2024, this scheme allows approved manufacturers to import completely built units (CBUs) of electric passenger cars at a reduced customs duty of 15% for five years, provided they establish manufacturing facilities in India.
FAME India Phase II
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Phase II was implemented in 2019 with a ₹11,500 crore budget. The scheme focuses on incentivizing the domestic production of EVs and related components through the Phased Manufacturing Programme (PMP).
PM E-DRIVE Scheme
Introduced in September 2024 with an outlay of ₹10,900 crore, the PM E-DRIVE scheme aims to promote electric mobility, covering vehicles such as e-two-wheelers, e-three-wheelers, e-trucks, e-buses, and e-ambulances. It also supports the development of charging infrastructure and the upgrading of testing agencies.
Regional Impact of EV Manufacturing
Although the state-wise production data of EVs is unavailable, the PLI schemes have spurred the establishment of 257 manufacturing units across various states. Maharashtra leads with 77 facilities, followed by Tamil Nadu with 46 and Karnataka with 28. Similarly, the PLI-ACC scheme has approved applications from Gujarat, Karnataka, and Tamil Nadu, positioning these states as critical hubs for EV battery manufacturing.
Key Consultations and Events
The Ministry of Heavy Industries has proactively engaged stakeholders to chart a sustainable EV roadmap. Some notable events include:
- PLI Auto Conclave (January 2024): Highlighted the potential of the PLI-Auto scheme in transforming the automotive industry.
- Consultations on e-Trucks and e-Buses (May 2024): Explored strategies for adopting electric heavy vehicles in India.
- FAME Success Event (September 2024): Showcased achievements under the FAME scheme in revolutionizing India’s EV landscape.
- PM E-DRIVE Consultations (September 2024): Gathered feedback from manufacturers and dealers before the scheme’s rollout.
Infrastructure Development
The government has also prioritized the establishment of EV charging infrastructure. Notably, the Ministry of Power clarified in 2018 that EV charging stations do not require a license under the Electricity Act 2003. Furthermore, NITI Aayog’s draft Battery-Swapping Policy, released in 2022, offers a flexible alternative to conventional charging methods, ensuring convenience for EV users.
Challenges and the Road Ahead
Despite significant progress, challenges persist, including the high cost of EVs, limited charging infrastructure, and dependence on imported components. However, the government’s concerted efforts through PLI schemes, policy frameworks, and stakeholder consultations are addressing these hurdles.
The next steps involve faster incentive disbursement under the PLI schemes, scaling battery production, and ensuring the localization of critical components. Moreover, awareness campaigns and buyer incentives will play a pivotal role in accelerating EV adoption.
India’s EV production has entered a rapid growth phase, reflecting the nation’s resolve to transition towards sustainable mobility. By leveraging its robust policy framework, manufacturing capabilities, and innovative initiatives, India is poised to become a global leader in the EV ecosystem. The EV sector will undoubtedly be a cornerstone of this transformative journey as the country accelerates towards its vision of Atmanirbhar Bharat and Viksit Bharat 2047.
