India’s EV Ecosystem Is Growing rapidly as the government steps up efforts to accelerate electric mobility, expand charging infrastructure, and strengthen domestic EV manufacturing. More than 46 lakh electric vehicles have been supported through various schemes of the Ministry of Heavy Industries (MHI), covering electric two-wheelers, three-wheelers, cars, buses, trucks, and ambulances.
The government’s strategy combines consumer incentives with charging infrastructure, electric bus deployment, and domestic manufacturing support to build a stronger India EV ecosystem.
FAME-II Supported 16.72 Lakh EVs
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) Scheme Phase-II was implemented from April 2019 to March 2024 with budgetary support of ₹11,500 crore.
Under FAME-II, around 16.72 lakh electric vehicles were supported. The scheme also facilitated the deployment of 5,299 electric buses and 9,583 public EV charging stations.
Of the total FAME-II allocation, ₹912.50 crore was specifically allocated for establishing public EV charging stations across the country.
FAME-I had earlier supported around 2.80 lakh EVs, highlighting the government’s continuing push toward EV adoption in India.
PM E-DRIVE Pushes EV Adoption Further
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, notified in September 2024 with an outlay of ₹10,900 crore, has become another major driver of India’s EV growth.
The scheme supports approximately 28.30 lakh electric vehicles, including electric two-wheelers, three-wheelers, trucks, buses, and ambulances. According to the Ministry, 26.59 lakh EVs had been supported under PM E-DRIVE.
The government has allocated ₹4,391 crore for deploying 14,028 electric buses, with 14,000 already allocated. Another ₹2,000 crore has been earmarked for public EV charging stations.
Manufacturing Gets Major Policy Support
India’s EV Ecosystem Grows beyond vehicle adoption, with the government also focusing on domestic manufacturing.
The PLI Scheme for the Automobile and Auto Component Industry, notified in September 2021 with an outlay of ₹25,938 crore, aims to strengthen manufacturing capabilities for Advanced Automotive Technology products, including electric vehicles. Around 21.30 lakh vehicles had been sold under the PLI-Auto and Auto Components scheme up to March 31, 2026.
Meanwhile, the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, notified in June 2021 with an outlay of ₹18,100 crore, aims to establish domestic manufacturing capacity for 50 GWh of ACC batteries. Of this, 40 GWh has been awarded to four beneficiary firms.
Electric Buses and Charging Network Expand
The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, notified in October 2024 with an outlay of ₹3,435.33 crore, aims to support more than 38,000 electric buses by providing payment security to operators if public transport authorities default on payments.
As of July 10, 2026, the scheme covered 27,555 electric buses: 10,000 under PM-eBus Sewa, 14,000 under PM E-DRIVE, and 3,555 through state government and state transport undertaking initiatives.
India’s EV Ecosystem Grows alongside the charging network. As of August 7, 2026, India had 67,657 EV chargers installed across States and Union Territories, including 1,139 chargers at battery swapping stations.
Policies Aim to Make EVs More Affordable
The government has also introduced measures to improve electric mobility in India. GST on electric vehicles and EV chargers or charging stations has been reduced to 5%. Battery-operated vehicles receive green license plates and are exempt from permit requirements.
The Ministry of Road Transport and Highways has also advised states to waive road tax on electric vehicles, potentially lowering their upfront ownership costs.
With financial incentives, manufacturing support, expanding charging infrastructure, and electric bus programs working together, India’s EV Ecosystem Grows into a broader national electric mobility strategy focused on adoption, affordability, and long-term domestic EV capabilities.
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