Significant momentum is being gained by India’s e-mobility sector. Driven by government initiatives, technological advancements, and environmental objectives, a major milestone was achieved in the Financial Year 2024-25 with electric vehicle (EV) sales surpassing one million units. This development aligns with national goals for sustainable mobility, Net Zero by 2070, and Aatmanirbhar Bharat (self-reliant India).
Impressive Growth Recorded in EV Sales
Data for the Financial Year 2024-25 reveals substantial growth across key EV segments, demonstrating increased consumer adoption:
i) Electric Two-Wheelers (e-2W): A total of 11,49,334 units were sold. This reflects a 21% increase compared to the 9,48,561 units sold in FY 2023-24.
ii) Electric Three-Wheelers (e-3W – L5 Category): Sales reached 1,59,235 units. This marks a significant 57% growth over the 1,01,581 units sold in the previous financial year.
Government Impetus: The PM E-DRIVE Scheme
The acceleration of EV adoption is significantly supported by government policy. The Ministry of Heavy Industries (MHI) notified the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ on September 29, 2024.
Key Aspects of the PM E-DRIVE Scheme:
i) Objective: To provide impetus to green mobility and develop the domestic EV manufacturing ecosystem.
ii) Financial Outlay: A total of Rs. 10,900 crore has been allocated for the scheme’s implementation.
iii) Duration: The scheme covers a period of two years, effective up to March 31, 2026.
iv) Integration: The earlier Electric Mobility Promotion Scheme (EMPS) 2024, implemented for six months from April 1, 2024, to September 30, 2024, has been subsumed under the PM E-DRIVE scheme.
Scheme Performance (FY 2024-25):
The success of MHI’s flagship schemes, including previous phases of FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), EMPS, and the current PM E-DRIVE, is reflected in these figures:
i) Vehicle registrations recorded on the VAHAN portal under this framework included 10,10,101 e-2W units and 1,22,982 e-3W (L5) units.
ii) This data confirms that sales exceeding one million EVs were facilitated, at least in part, by the scheme’s incentives during FY 2024-25.
Quantifiable Environmental Benefits
The impact of promoting electric mobility extends to significant environmental advantages. As calculated up to March 31, 2025, the data associated with EV adoption reflects:
i) Fuel Savings: An estimated 8,55,723 litres of fuel saved per day, contributing to cumulative savings of 15,77,33,334 litres.
ii) CO2 Reduction: An estimated reduction of 12,48,100 kg of CO2 emissions per day, leading to a total reduction of 23,01,73,978 kg.
Strengthening the Manufacturing Ecosystem: PLI Auto Scheme
Complementing demand-side incentives like PM E-DRIVE, the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry is instrumental. This scheme aims to transform India’s automotive sector by promoting investment in sustainable and advanced automotive technology manufacturing capabilities.
i) The application by 18 Original Equipment Manufacturers (OEMs) under this initiative signifies strong industry commitment.
ii) The PLI scheme plays a crucial role in accelerating the electric mobility revolution and enhancing India’s self-reliance (Aatmanirbhar Bharat) in the automotive domain by encouraging domestic production of advanced automotive technology products, including EV components.
Strategic Goals: Beyond Sales Numbers
Government initiatives in e-mobility are designed to address critical national challenges. Key objectives pursued through schemes like PM E-DRIVE include:
i) Environmental Protection: Mitigating air pollution associated with internal combustion engine vehicles, especially in urban areas.
ii) Energy Security: Reducing the nation’s dependence on imported fossil fuels through electrification of transport.
iii) Economic Growth: Catalysing significant investment within the EV sector, including battery manufacturing, component production, and vehicle assembly.
iv) Job Creation: Generating substantial employment opportunities across the value chain, encompassing manufacturing, research and development (R&D), charging infrastructure deployment, and maintenance services.
Conclusion: A Milestone Towards Sustainable Mobility
The achievement of over one million EV sales in FY 2024-25 marks a significant milestone for India’s e-mobility journey. Propelled by strategic government interventions like the PM E-DRIVE scheme and supported by initiatives like the PLI Auto scheme, the nation’s transition towards sustainable transportation is demonstrably accelerating. This progress paves the way for substantial environmental benefits, enhanced energy security, and robust economic development within the automotive sector. (PIB: 2117485)