Autobayng News Team
The government has also launched the PLI Scheme for Advanced Chemistry Cell Battery Storage, with an outlay of ₹18,100 crore and a target to establish 50 GWh of advanced battery manufacturing capacity in the country.“>
India’s electric vehicle (EV) adoption has gathered pace over the past five years, with the number of registered EVs increasing 91 per cent to 19.68 lakh in FY25 from 1.74 lakh in FY20, government data presented in Parliament showed.The government data, sourced from the Vahan Portal, shows steady growth in EV registrations despite a temporary dip during the pandemic year FY2020-21 when registrations stood at 1.43 lakh.The numbers later accelerated to 4.59 lakh in FY22, 11.83 lakh in FY23, and 16.81 lakh in FY24.
To support this transition and strengthen domestic manufacturing capabilities, the government has introduced a series of schemes to build a resilient EV supply chain and boost localisation.
Key measures taken by the Centre
One of the key initiatives is the Production-Linked Incentive Scheme for the Automobile and Auto Component Industry, approved in September 2021, with a budgetary outlay of ₹25,938 crore. The scheme aims to enhance India’s manufacturing capabilities for advanced automotive technology products while encouraging at least 50 per cent domestic value addition and attracting fresh investment into the automotive value chain.The government has also launched the PLI Scheme for Advanced Chemistry Cell Battery Storage, with an outlay of ₹18,100 crore and a target to establish 50 GWh of advanced battery manufacturing capacity in the country.
Another key programme is the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, notified in September 2024 with a total outlay of ₹10,900 crore over four years. The scheme provides incentives for the sale of electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and electric buses, while also supporting the development and upgrades of charging infrastructure and vehicle testing agencies.
To further strengthen domestic supply chains, the ministry notified the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet in December 2025 with a financial outlay of ₹7,280 crore. The initiative aims to establish 6,000 metric tonnes per annum of integrated rare earth permanent magnet manufacturing capacity in India.
In addition, the government introduced the PM e-Bus Sewa Payment Security Mechanism Scheme, with an outlay of ₹3,435.33 crore, to support the deployment of more than 38,000 electric buses by providing payment security to operators if public transport authorities default on payments.
Another initiative, the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India, aims to attract global EV manufacturers to set up local production facilities. Under this scheme, companies must invest at least ₹4,150 crore and achieve 25 per cent domestic value addition by the third year and 50 per cent by the fifth year.
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