India’s transition to electric mobility

India's electric vehicle (EV) market grew elevenfold between FY2020 and FY2025, driven by central and state government subsidies. The transport sector, particularly road transport, is a critical focus for India's goal to reach net-zero emissions by 2070. Key policy mechanisms include the FAME-I, FAME-II, and PM E-DRIVE schemes, alongside state-level policies in over 25 states.

• India's electric vehicle registrations experienced an elevenfold increase between FY2020 and FY2025, rising from approximately 0.175 million units to nearly 1.9 million units. This growth was primarily led by two-wheeler and three-wheeler segments, while electric light motor vehicle sales grew nearly 100-fold from just over 1,000 units to more than 100,000 units.
• The transport sector is a major source of greenhouse gas emissions in India, representing 14% of energy-related direct emissions, with road transport accounting for over 90% of the sector's CO2 emissions.
• India has established several electrification targets: achieving zero-emission sales for all new cars and vans by 2040, and by 2030, electrifying 30% of private cars, 70% of commercial vehicles, and 80% of two and three-wheelers sales.
• Central government subsidies since 2015, totaling approximately INR 712.7 billion (~USD 8.6 billion), have been pivotal. Key programs include FAME-I (2015–19), FAME-II (2019–24), the e-Bus SEWA scheme launched in August 2023, and the PM E-DRIVE scheme which continues subsidies until March 2026.
• State-level adoption varies by region: Uttar Pradesh led in absolute sales in FY2025, with electric three-wheelers making up 70.6% of its sales. High shares of electric two-wheelers were recorded in Maharashtra (86.1%), Tamil Nadu (86.3%), Karnataka (85.4%), Odisha (85.8%), and Gujarat (84.5%).

APA

Ember (2025). India’s transition to electric mobility. https://ember-energy.org/chapter/chapter-1-indias-transition-to-electric-mobility/

Chicago

Ember. India’s transition to electric mobility. 2025. https://ember-energy.org/chapter/chapter-1-indias-transition-to-electric-mobility/.

Wikipedia

{{cite report |author=Ember |title=India’s transition to electric mobility |date=23 July 2025 |url=https://ember-energy.org/chapter/chapter-1-indias-transition-to-electric-mobility/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025indias, author = {{Ember}}, title = {{India’s transition to electric mobility}}, institution = {Ember}, year = {2025}, month = jul, url = {https://ember-energy.org/chapter/chapter-1-indias-transition-to-electric-mobility/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }