INCREASING ADOPTION OF ELECTRIC VEHICLES IN INDIA

**Executive Summary** The Ministry of Heavy Industries (MHI) report, dated December 5, 2025, details the initiatives undertaken to increase the adoption of Electric Vehicles (EVs) in India. It highlights the installation of EV chargers, outlines guidelines for charging infrastructure, and presents various schemes to promote the manufacturing and adoption of electric vehicles, including buses. A key date mentioned is November 14, 2025, when bids for e-bus operators in Phase I were opened. **Key Points / Main Content** * **EV Charging Infrastructure:** * 39,485 EV chargers are installed, including 8,414 fast EV chargers. * Ministry of Power has issued "Guidelines for installation and operation of Electric Vehicle Charging Infrastructure 2024." * An allocation of Rs.2,000 crore has been made under the PM E-DRIVE Scheme for EV public charging stations. * **E-Bus Deployment:** * The PM E-DRIVE Scheme facilitates the procurement of e-buses. * Phase I: 10,900 e-buses have been allocated to five cities. * Bids for e-bus operators in Phase I opened on 14.11.2025. * Phase II: An additional 2,900 e-buses have been allocated. * **Schemes to Increase EV Adoption:** * **Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry (PLI-Auto):** Notified on 23rd September 2021 with a budgetary outlay of Rs.25,938 crore. * **Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage:** Notified on 9th June 2021 with a budgetary outlay of Rs.18,100 crore to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries. * **PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme:** Notified on 29th September 2024 with an outlay of Rs.10,900 crore to support electric vehicles, including e-2W, e-3W, e-Trucks, e-buses, and e-Ambulances, EV public charging stations and upgradation of testing agencies. * **PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme:** Notified on 28th October 2024 with an outlay of Rs.3,435.33 crore to support the deployment of more than 38,000 electric buses and provide payment security to e-bus operators. * **Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):** Notified on 15th March 2024 to promote manufacturing of electric cars, requiring applicants to invest a minimum of Rs.4,150 crore and achieve a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the fifth year. **Impact Analysis** **EV Manufacturers and Auto Component Suppliers** * **Impact:** Increased opportunities through PLI schemes and potential for higher production volumes. * **Action Required:** Evaluate participation in PLI schemes, invest in advanced automotive technology, and adapt manufacturing processes to electric vehicle components. **Battery Manufacturers** * **Impact:** Beneficiaries of the PLI scheme for ACC battery storage. * **Action Required:** Evaluate participation in PLI scheme, establish or expand manufacturing facilities to produce ACC batteries in India. **E-Bus Operators** * **Impact:** Opportunities for deployment of e-buses in various cities and benefit from payment security mechanisms. * **Action Required:** Participate in competitive bidding for e-bus operation contracts and ensure compliance with scheme requirements. **Public Transport Authorities (PTAs)** * **Impact:** Opportunity to deploy more e-buses, upgrade public transport infrastructure and may be impacted by the PSM scheme. * **Action Required:** Procure e-buses, ensure timely payments to e-bus operators to avoid triggering the payment security mechanism. **Consumers** * **Impact:** Increased access to EVs due to increased manufacturing, and access to public charging stations. * **Action Required:** No action required. Consider switching to electric vehicles as charging infrastructure improves and vehicle costs decrease.

Key Entities Referenced