In recent years, EV demand has shot up in Punjab, reflecting a broader nationwide trend of accelerating electric vehicle adoption. Although the state’s EV penetration historically lagged behind the national average, recent data indicate a remarkable rise in registrations, signaling growing consumer interest and policy support for electric mobility.
According to the Ministry of Road Transport and Highways (MoRTH), the registration of electric two-wheelers in Punjab surged from just 128 units in 2020 to 21,229 units by November 2025. Similarly, electric car registrations climbed from 11 in 2020 to 2,670 in 2025, with a sharp jump from 799 in 2023 to 1,469 in 2024. This demonstrates that EV demand has shot up in Punjab, particularly over the last two years, coinciding with the introduction of the state’s Electric Vehicle Policy in 2023.
The Punjab EV policy, launched in 2023, has played a pivotal role in this growth. One of the key incentives is a complete exemption from road tax, which normally ranges from 9% to 13% of a vehicle’s ex-showroom price, applicable to all electric vehicles regardless of their cost. While Chandigarh and Haryana complement road tax exemptions with purchase subsidies, Punjab currently focuses on tax relief alone, yet this measure has already significantly boosted adoption. Experts emphasize that the policy should be extended at least until 2026, alongside the rapid expansion of charging infrastructure, to sustain this momentum.
Dr. Mohd Parvez, founder of Automotive portal Xroaders, notes that enhancing the number of charging stations is critical to encouraging electric vehicle uptake. Currently, many cities in Punjab lack a single public charging station. Dr. Simran adds that fulfilling the policy promise of one public charger for every 10 EVs in target cities is essential for maintaining growth.
Nationally, EV adoption has surged from 50,000 units in 2016 to over 2.08 million in 2024, with e-two wheelers alone reaching 5.71 lakh units in FY 2024-25. Punjab, which accounted for only 0.26% of total vehicles in 2023, has now increased its share to 1.90%, illustrating the rapid acceleration of electric mobility in the state. Central Government initiatives such as FAME India Phase-II and PM e-Drive Scheme further support this transformation by providing incentives and developing charging infrastructure.
Clearly, EV demand has shot up in Punjab in response to policy measures, financial incentives, and growing consumer awareness. With continued support, infrastructure expansion, and effective implementation, the state is poised to play a significant role in India’s transition to electric mobility. The next few years will be crucial in sustaining this upward trajectory as Punjab aligns with the national push for a greener and cleaner future.
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