The Government has reaffirmed its commitment towards EVs and its mission for 30% electric mobility by 2030. Budget announced customs duty exemption on the import of capital goods and machinery required for the manufacture of lithium-ion batteries that typically power EVs.
The Indian government launched ambitious plans to add approximately 72,000 new EV chargers by FY26, including around 22,100 fast chargers for cars, reflecting strong policy support for infrastructure development.
The government has sanctioned Rs. 1,062 crore (US$ 120 million) in August 2025 for 85 civil depot and 88 power projects, with Rs. 475 crore (US$ 54 million) already disbursed to nine states/UTs to boost EV accessibility, affordability, and localisation.
In August 2025, NITI Aayog proposed a national EV policy focusing on mandates and disincentives rather than subsidies, targeting 30% EV share of total vehicle sales by 2030 and pilot programs for 100% electrification of buses and freight vehicles. FAME India Phase-II, launched in April 2019 with a budget of Rs. 11,500 crore (US$ 1.31 billion), aims to boost EV adoption, expand electric bus fleets, and develop charging infrastructure.
As of June 30, 2025, the government had supported over 16.29 lakh electric vehicles under FAME II, including 14.35 lakh e-2 wheelers, 1.65 lakh e-3 wheelers, 22,644 e-4 wheelers, and 5,165 electric buses from a sanctioned 6,862 buses. Public charging infrastructure progress showed 8,885 EV public charging stations installed out of 9,332 sanctioned, backed by Rs. 912.5 crore (US$ 103.66 million) allocated for these installations.
Under FAME-II, the Phased Manufacturing Programme (PMP) was launched to boost local production of EVs and their components, with incentives limited to vehicles meeting PMP norms.
A scheme with a budget of Rs. 778 crore (US$ 93.5 million) ran for six months from April 1, 2024, to September 30, 2024. The initiative offered incentives to purchasers of electric two-wheelers (e-2W) and electric three-wheelers (e-3W).
The Scheme supports 3,72,215 EVs, comprising 3,33,387 e-2Ws, and 38,828 e-3Ws (including 13,590 rickshaws & e-carts and 25,238 e-3Ws in L5 category), offering incentives exclusively for advanced battery-equipped vehicles.
The EMPS 2024 scheme has been merged into PM E-DRIVE, retaining similar incentives while focusing on domestic sourcing under the Phased Manufacturing Programme, with benefits extended to startups and MSMEs across states like Tripura.
In June 2025, the Tamil Nadu State Planning Commission unveiled the “Tamil Nadu’s Automotive Future” roadmap to position the state as a global EV innovation hub. The plan includes mobility innovation funds for R&D in battery chemistry and advanced EV technologies, along with dedicated R&D zones in Chennai and Coimbatore.
The government increased the PLI allocation for automobiles and auto components to Rs. 3,500 crores (US$ 409 million) in FY25, up from Rs. 604 crores (US$ 70 million) in FY24.
The government has outlined a scheme to transition 800,000 diesel buses to environmentally friendly alternatives, possibly supplanting FAME III. The strategy involves substituting 800,000 diesel buses, comprising over a third of all vehicles on roads, with electric ones within seven years. This endeavour seeks to diminish vehicular emissions and stimulate investments in the national electric vehicle (EV) infrastructure.
The Ministry of Heavy Industries launched the PM E-DRIVE Scheme with Rs. 10,900 crore (US$ 1.28 billion) to boost India’s EV ecosystem, promoting electric mobility and reducing fossil fuel reliance.