Despite Half Subsidy, 11.3 Lakh Electric Vehicles Sold Across India – Which State Leads the EV Race?

New Delhi: India’s electric vehicle (EV) market is witnessing a remarkable surge. Despite subsidies being reduced by half under the PM E-Drive scheme, a total of 11.3 lakh EVs were sold nationwide, signaling that electric mobility is increasingly becoming the preferred choice for consumers.

Strong Growth Under PM E-Drive
According to a report by the Council on Energy, Environment and Water (CEEW) Green Finance Centre, the PM E-Drive scheme has boosted EV sales to 3.4 times the annual numbers under the FAME-2 program, even with reduced incentives. This clearly indicates a shift in consumer preference toward electric mobility, marking a significant transformation in India’s automotive sector.

EVs Now 7.5% of Total Vehicle Sales
While only 2,000 electric vehicles were sold in 2014–15, the market has grown exponentially, reaching 19.6 lakh units in 2024–25. EVs now account for 7.49% of total vehicle sales. Initially, e-rickshaws dominated the segment, but by 2024–25, over 11.5 lakh EV two-wheelers had been sold, showing a broader adoption across vehicle types.

Rising Adoption in Affluent States
The report highlights that states with higher per capita income—Delhi, Goa, and Karnataka—are leading in EV adoption. Even commercial electric four-wheelers have seen noticeable growth, while EV buses are gradually increasing in number.

Significant Policy Shift
Karthik Ganesan, Fellow and Director at CEEW, remarked that the transition from FAME-2 to PM E-Drive represents a major policy shift in India’s EV landscape. Despite lower subsidies, the sale of 11.3 lakh EVs demonstrates that multiple segments of the market are now advancing independently, reflecting growing consumer confidence and the sector’s long-term potential.