What will propel India's adoption of EVs into the next phase?

The PM E-Drive Scheme prioritizes infrastructure charging and EV promotion through demand incentives. It offers an INR 10,900 crore subsidy over two years. Public transportation buses (more than 14,000 e-buses), two- and three-wheelers (million and 316,000, respectively), and e-trucks to some extent are among the beneficiaries of the INR 500 crore subsidy offered to those with scrapping certificates from vehicle scrapping centers.

Approximately 3.9 million EVs have been sold in India since the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) subsidies were introduced in April 2015; 70% of those sales have occurred in the last two years alone.

However, up until July, sales for FY25 had continuously exceeded those for FY24. This implies that India's car electrification is starting to support itself.

With a two-year subsidy of INR 10,900 crore, the PM E-Drive Scheme prioritizes the development of EV infrastructure and demand-driven incentives. Public transportation buses (more than 14,000 e-buses), two- and three-wheelers (2.48 million and 316,000, respectively), and e-trucks to some degree are the largest beneficiaries because the INR 500 crore subsidy is only available to those who possess a scrapping certificate from a vehicle scrapping center. Over 72,000 fast chargers will be installed as part of the INR 2,000 crore budget, primarily for e-two- and e-three-wheelers in some towns, but also for buses and four-wheelers.