PM EDRIVE Delivers 1.13 Million EVs with Lower Subsidies, Shows Market Maturity

Key Highlights

• 1.13 million EVs delivered in the first year.

• Subsidy reduced to ₹5,000 per kWh.

• EV sales grew 15 times since FY20.

• Two-wheelers lead EV adoption.

• Charging infra allocation doubled to ₹20 billion.

India’s electric mobility journey has reached an important milestone. The PM EDRIVE scheme delivered 1.13 million electric vehicles (EVs) in its first year, even while offering 50% lower per-vehicle subsidies compared to the earlier FAME II programme. This achievement clearly shows that India’s EV market is becoming stronger and more self-reliant.

PM EDRIVE vs FAME II: Bigger Volumes, Lower Support

According to a new study by the Council on Energy, Environment and Water (CEEW), PM EDRIVE reduced per-unit demand incentives to ₹5,000 per kWh, yet achieved 3.4 times higher annual EV volumes than FAME II.

While FAME II operated between FY20 and FY24, PM EDRIVE’s performance from FY25 onwards reflects a shift towards a more mature and economically integrated EV ecosystem.

India’s EV Sales Grow 15 Times Since FY20

The study titled “Navigating India’s Electric Mobility Transition: Market Dynamics to Policy Shifts” highlights that India’s total EV sales have grown 15-fold since FY20.

In FY25 alone, EV sales reached around 1.96 million units, pushing overall EV penetration to 7.49%.

Changing EV Market Composition

India’s EV market has evolved significantly over the years:

• Early years (FY20–FY21): E-rickshaws dominated EV adoption

• Current trend (FY25):

• Electric two-wheelers lead the market with over 1.15 million units sold

• Commercial electric four-wheelers show strong growth, especially in urban logistics and shared mobility

This shift indicates growing confidence in EVs across personal and commercial use cases.

Strong Regional Differences in EV Adoption

The study also points out clear regional variations:

• Higher-income states and UTs like Delhi, Goa, and Karnataka show diversified EV adoption

• Electric two-wheeler penetration in these regions is nearly five times higher than in lower-income states

• States such as Bihar and Tripura rely heavily on electric three-wheelers, which make up over 52% of EV penetration

Segment-Wise Performance Against Targets

EV adoption performance varies by vehicle category:

• Commercial electric three-wheelers: 153% of FY25 target achieved

• Electric two-wheelers: 95% of target achieved

• Electric rickshaws and e-carts: Only 5% of the target was achieved

This highlights the need for more focused support in slower-growing segments.

Expert View: Focus on Targeted Policies

Karthik Ganesan, Fellow and Director – Strategic Partnerships at CEEW, said that delivering over one million EVs with lower incentives proves that parts of India’s EV market are becoming self-sufficient. He stressed that future policies must focus on policy coherence, charging readiness, and targeted interventions, rather than assuming uniform EV adoption across the country.

Key Upgrades Under PM EDRIVE

PM EDRIVE brings several important improvements:

• Charging infrastructure allocation doubled to ₹20 billion

• Expanded support for e-trucks and e-ambulances

• Stronger localisation via Aadhaar-enabled e-vouchers

• Scrappage-linked incentives for electric buses and trucks

Policy Recommendations to Sustain Growth

The study suggests key steps to maintain momentum:

• Embed India’s 30% EV adoption target by 2030 into a national policy framework

• Set category-wise and state-level EV targets

• Improve transparency with an enhanced PM EDRIVE dashboard and unified national EV data

• Dynamically reallocate budgets towards high-demand segments

• Rework incentives for MSMEs, public fleets, rural markets, and informal transport operators

EV Transition and India’s Economy

India’s automotive sector contributes 7.1% to GDP and supports over 30 million jobs. As PM EDRIVE shows strong early results, India’s electric mobility transition is clearly moving from subsidy-driven adoption towards a more stable, market-led future.

Also Read: Volkswagen Starts E-Volksbus Electric Bus Deliveries in Brazil

CMV360 Says

PM EDRIVE’s first-year performance proves that India’s electric vehicle market is moving towards maturity. Delivering 1.13 million EVs with lower subsidies shows growing consumer confidence and industry readiness. With rising EV penetration, strong two-wheeler demand, and improved policy design, India’s electric mobility transition is shifting from heavy incentives to sustainable growth, backed by better infrastructure, targeted support, and long-term policy clarity.