India’s EV Sector Maintains 63% CAGR Over 6 Years; Registrations Near 2 Million in FY25

India’s electric vehicle (EV) market has grown at a compounded annual growth rate of 63% over the past 6 years, according to the Economic Survey 2025-26 tabled on January 29, 2026.  

Total EV registrations reached 1.97 million units in FY25, compared with 1.68 million units in FY24, showing a year-on-year increase of 16.9%. In FY20, registrations were estimated at around 0.1-0.2 million units. 

Two-Wheelers Lead Market Volumes 

Electric two-wheelers remained the largest category, with registrations rising 21% in FY25 to 1.15 million units. Electric passenger vehicles crossed the 100,000-unit mark for the first time, posting an 18% increase over the previous year. The figures show continued concentration of adoption in lower-cost vehicle segments. 

Manufacturing Incentives and Battery Capacity 

The Production-Linked Incentive (PLI) scheme for the automobile and auto components industry, approved in September 2021 with an outlay of ₹25,938 crore, had attracted cumulative investments of ₹35,657 crore as of September 2025.  

The PLI programme for Advanced Chemistry Cell (ACC) battery storage, with an outlay of ₹18,100 crore for 50 GWh capacity, has allocated 40 GWh to firms to support domestic battery manufacturing. 

Demand Incentives and Public Transport Schemes 

The PM E-Drive scheme, launched in September 2024 with an outlay of ₹10,900 crore, provides demand incentives for electric two- and three-wheelers and extends support to e-trucks and e-ambulances. The programme also includes funding for charging infrastructure and upgrades of vehicle testing agencies.  

In October 2024, the PM e-Bus Sewa-Payment Security Mechanism scheme was notified with an estimated outlay of ₹3,435.33 crore to support the deployment of more than 38,000 electric buses. 

Read More: India-EU FTA to Cut Car Tariffs, Set Import Quotas Across ICE and EV Segments! 

Conclusion 

India’s EV registrations have increased since FY20, with policy measures, manufacturing investment and infrastructure programmes coinciding with higher volumes across vehicle segments, led by electric two-wheelers. 

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