Lok Sabha Question No. 1437 (UNSTARRED), answered on 2025-12-09
Subject: Incentives for Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Shri Anto Antony, Shri Tanuj Punia

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1437

ANSWERED ON 09.12.2025

## INCENTIVES FOR ELECTRIC VEHICLES

## 1437.  SHRI TANUJ PUNIA:

SHRI ANTO ANTONY:

## Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a) the details of the year-on-year growth in Electric Vehicles (EV) penetration between FY20202025;
- (b) the measures taken by the Government to strengthen the supply chain resilience for domestic manufacturing;
- (c) the details of the impact of the recent tariffs on the domestic EV manufacturing ecosystem;
- (d) the percentage of the current EV components which are manufactured in the country including component-wise details; and
- (e)  whether  the  Government  is  considering  withdrawing  incentives  for  EVs,  if  so,  the  reasons therefor?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

- (a): The year-on-year growth in Electric Vehicles (EV) penetration between FY 2020-2025 is as under: (Nos. in lakh)

| Financial Year /Category           | 2019-20   | 2020-21   | 2021-22   | 2022-23   | 2023-24   | 2024-25   |
|------------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|
| Registered ICE Vehicles            | 244.20    | 173.79    | 179.86    | 211.49    | 229.60    | 242.84    |
| Registered Electric Vehicles (EVs) | 1.74      | 1.43      | 4.59      | 11.83     | 16.81     | 19.68     |
| EV Penetration                     | 0.71%     | 0.82%     | 2.49%     | 5.30%     | 6.82%     | 7.50%     |

Source : Vahan Portal

- (b) Further, the Ministry of Heavy Industries has launched the following schemes for strengthening the supply chain resilience for domestic manufacturing:
- i. Production  Linked  Incentive  Scheme for  Automobile  and  Auto  Component  Industry (PLIAuto): 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.
- ii 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 establishing a cumulative ACC battery manufacturing capacity of 50 GWh.

iii. 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.

(c): No such assessment has been carried out by Ministry of Heavy Industries (MHI).

(d): Data on percentage of the EV components which are manufactured in the country is not maintained centrally.

(e): No such proposal is under consideration with the Ministry of Heavy Industries.

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