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Updated On: 17-Dec-2025 06:49 AM
PM EDRIVE delivers 1.13 million electric vehicles with lower subsidies, showing India’s EV market maturity, rising adoption, regional trends, infrastructure push, and a shift towards sustainable electric mobility growth.
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.
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.
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%.
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.
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
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.
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.
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
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
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.
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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.