USE OF ELECTRIC VEHICLES – EQ

In Short : The growing use of electric vehicles is transforming the global transportation sector by reducing carbon emissions and dependence on fossil fuels. Governments and industries are promoting electric mobility through incentives, infrastructure development, and technological innovation. Electric vehicles offer cleaner transportation, lower operating costs, and improved energy efficiency, making them a key solution for achieving sustainable and environmentally friendly mobility.

In Detail : The Year-on-Year (YoY) use of electric vehicles (EVs) between financial year 2019-20 to 2024-25 is depicted below:

Further, the Ministry of Heavy Industries (MHI) has launched the following schemes for strengthening the supply chain resilience for domestic manufacturing :

• Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-Auto): Government on 15.09.2021 approved PLI-Auto Scheme, for enhancing India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products with a budgetary outlay of ₹25,938 crore. The scheme proposes financial incentives to boost domestic manufacturing of AAT products with minimum 50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain.
• Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: Government on 12.05.2021 approved PLI-ACC in order to promote manufacturing of ACC in the country with a budgetary outlay of ₹18,100 crore. The scheme envisages to establish a cumulative ACC battery manufacturing capacity of 50 GWh.
• PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: PM E-DRIVE Scheme has been notified on 29.09.2024. The scheme has an outlay of ₹10,900 crore over a period of four years from 01.04.2024 to 31.03.2028 (except for e-2Ws and e-3Ws for which the terminal date is 31.03.2026). This scheme aims to incentivise sale of e-2W, e-3W, e-Ambulances, e-Trucks, and e-buses. The scheme also supports development of charging infrastructure and upgradation of vehicle testing agencies. Under the PM E-DRIVE Scheme, Phased Manufacturing Programme (PMP) mandates domestic manufacturing of specified EV components.
• Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM Scheme): MHI, on 15.12.2025, notified the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM Scheme) with a financial outlay of ₹7,280 crore. This initiative aims to establish 6,000 metric tons per annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.
• PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This Scheme notified on 28.10.2024, has an outlay of ₹3,435.33 crore and aims to support deployment of more than 38,000 electric buses. The objective of this scheme is to provide payment security to e-bus operators in case of default by Public Transport Authorities (PTAs).
• Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) was notified on 15.03.2024 to promote the manufacturing of electric cars in India. This requires applicants to invest a minimum of ₹4,150 crore and to achieve a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the fifth year.

This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha.