The sale of electric vehicles in India has seen a rapid increase in recent years. Along with petrol and diesel vehicles, battery, CNG, and other alternative vehicles are also becoming increasingly popular. Government schemes such as FAME, PLI, and PM e-Drive have had a positive impact on this growth.
According to the vehicle data from the Ministry of Transport, from April 1, 2019, to March 31, 2024, a total of 10,75,31,040 vehicles were registered in India, out of which 36,39,617 were electric vehicles. This indicates that the market share of electric vehicles in the last five years has been 3.38%.
Uttar Pradesh Leads in Electric Vehicle Registrations
In the last five years, Uttar Pradesh has recorded the highest number of electric vehicle registrations. States like Maharashtra, Karnataka, Tamil Nadu, and Rajasthan also ranked among the top five. However, Sikkim recorded no electric vehicle registrations. Lakshadweep had 0.69%, Nagaland had 0.02%, and Arunachal Pradesh had 0.03% electric vehicle registrations. In Ladakh, the percentage was only 0.45%.
Government Schemes That Boosted Electric Vehicle Sales
- FAME Scheme: The central government’s FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme played a key role in boosting electric vehicle sales. This scheme was implemented from April 1, 2019, to March 31, 2023, providing subsidies based on battery capacity for electric vehicles. The government allocated ₹11,500 crore for this scheme.
- PLI Scheme: This scheme was introduced specifically for companies manufacturing vehicles and auto components. Under the Production-Linked Incentive (PLI) scheme, the government provides tax exemptions and other benefits to electric vehicle manufacturing companies. The government allocated ₹25,938 crore for the automobile sector under this scheme.
- PM e-Drive: After the conclusion of the FAME scheme, the government launched the PM e-Drive scheme on September 29, 2023. This scheme aims to promote the sales of electric two-wheelers, three-wheelers, four-wheelers, as well as electric buses, trucks, and ambulances. The scheme also focuses on upgrading public charging stations and vehicle testing agencies. The government has allocated ₹10,900 crore for PM e-Drive.
