PM Modi’s Green Push for EVs: Electric Vehicle Adoption Rockets from 0.01% In 2014 to 7.31% In 2024

EV Adoption in India: The Indian automotive industry has witnessed a major transition towards electric vehicles. As the Government of India is continuously pushing for alternative fuel vehicles, there are multiple policies, schemes, and infrastructure development that have helped in the growth of EVs in India. Under the leadership of Prime Minister Narendra Modi , between 2014 and 2024, the adoption of electric vehicles in India surged from a negligible 0.01 per cent in 2014 to 7.31 per cent in 2024. This growth in EV adoption reflects a significant shift in the country’s transportation landscape.

What were the EV registration numbers in 2014?

As per the e-Vahan portal of the Ministry of Road Transport and Highways, 2014 recorded registration of 2,000 vehicles, accounting for 0.01 per cent of EVs out of the total vehicles registered.

What were the EV registration numbers in 2024?

According to the e-Vahan portal of the Ministry of Road Transport and Highways, 17,84,000 vehicles were registered in 2024, which accounted for 7.31 per cent of EVs out of the total vehicles registered.

Which government policies are shaping EV adoption in India?

The Government of India has implemented multiple policies to shape EV adoption in India. It started with the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, and under the FAME-II scheme, ₹839 crore were allocated for setting up public charging stations for EVs. Recently, the PM e-Drive scheme was launched in October 2024, replacing the FAME scheme. It was launched with an outlay of ₹10,900 crore and under this, ₹2,000 crore are allocated for the development of EV charging stations.

What is the GST tax slab on electric vehicles?

In India, the internal combustion engine (ICE) cars have a GST tax slab of 28 per cent. However, the EVs attract a GST bracket of only 5 per cent, hence lowering the price of the vehicles.

Recent Announcements to faster EV adoption:

• According to a PIB statement, the Ministry of Power (MoP) issued "Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024" on 17.09.2024, which drafted the standards and the necessary protocols required for setting up of EV charging infrastructure network in the country.
• With the worsening air quality conditions in the national capital, the Delhi Government has also proposed an EV policy to fast-track the adoption of electric vehicles in the region. The proposed policy by the Delhi Government for electric vehicles is expected to take effect in April 2025. To support and develop charging infrastructure, the Delhi Government also plans to install more public charging points and further mandating the installation of charging stations in new buildings and public spaces.
• Recently, the Rajasthan government has announced subsidies of ₹200 crore under its Electric Vehicle Policy-2022. This is aligned with the FAME-II scheme and offers reimbursement on the  State GST and one-time grants to buyers of EVs, which are fitted with modern battery technology.

Also Read: Government’s New Policies Could Make EVs More Affordable in India: Here’s How