**Summary:**
In response to a parliamentary question regarding Electric Vehicles (EVs) and Hybrid Electric Vehicles, the Ministry of Heavy Industries clarified the following:
The Government of India has not established annual sales targets for EVs and hybrid electric vehicles. Consequently, no assessment has been conducted regarding the specific battery capacity (in Gigawatt hours) required to meet potential demand.
However, the government is supporting domestic battery research and development (R&D) through the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This scheme incentivizes companies to invest in R&D, including technology transfer, which is considered an eligible investment under the program. The PLI ACC scheme mandates a value addition of at least 60% within five years, fostering technology transfer, domestic R&D, and increased localization of battery production. This initiative aims to integrate domestic cell component manufacturers into the local supply chain, promote technological advancements, and reduce reliance on imports.
Key Entities Referenced
Ministry of Heavy Industries: A ministry of the Government of India responsible for the development of the heavy industry sector.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
EVs and Hybrid Electric Vehicles: Subject of the parliamentary question, referring to electric vehicles and hybrid electric vehicles.
SHRI ESWARASAMY K: Member of Parliament who raised the unstarred question in Lok Sabha.
SHRI BHUPATHIRAJU SRINIVASA VARMA: Minister of State for Heavy Industries who answered the question in the Lok Sabha.
Production Linked Incentive PLI Scheme for Advanced Chemistry Cell ACC Battery Storage: A government scheme designed to incentivize domestic manufacturing of advanced chemistry cell batteries.
Advanced Chemistry Cell ACC Battery Storage: Battery technology that the PLI scheme aims to promote.
Lithium: A mineral used in the production of batteries for EVs.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 4155
ANSWERED ON 19.08.2025
EVs AND HYBRID ELECTRIC VEHICLES
4155. SHRI ESWARASAMY K:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government has set a sales target of EVs and hybrid electric vehicles annually
and if so, the details thereof;
(b) whether a battery capacity of about 400 Gigawatt hours (GWh) each year would be required
to meet this demand;
(c) if so, how the Government plans to meet the expected demand;
(d) whether the Government has planned to invest in battery research and development
ecosystem domestically, considering that lithium is an important mineral used in production of
batteries and its global demand is increasing; and
(e) if so, the details thereof and if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) to (c): Government has not set any annual sales target of EVs and hybrid electric
vehicles. Requirement of batteries is demand driven and no such assessment for battery capacity
requirement has been done.
(d) & (e): Yes, under the Production Linked Incentive (PLI) Scheme for Advanced
Chemistry Cell (ACC) Battery Storage, investment in R&D is part of the programme agreement.
The PLI ACC scheme incentivizes beneficiary firms for technology transfer by considering it as
an eligible investment and the scheme emphasizes achieving a value addition of at least 60%
within five years from the appointed date, which encourages technology transfer, Research and
Development (R&D), and localization. This focus is expected to benefit domestic cell
component manufacturers by integrating them into the local supply chain, developing
technological advancements and reducing import dependence.
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