---
title: “India’s EV Policy 2025 Explained
description: "India's electric-mobility policy has evolved from *vision statements* to a layered, instrumented framework that now links **demand incentives, public-transport electrification, domestic manufacturing and critical-minerals security**, with measurable targets and time-bound schemes. The centrepiece in 2024-25 is the **PM E-DRIVE** scheme…"
url: "https://diyguru.org/guide/indias-ev-policy-2025-explained/"
updated: "2026-02-26"
category: 10. National EV Policy Framework
---

# “India’s EV Policy 2025 Explained

India's electric-mobility policy has evolved from *vision statements* to a layered, instrumented framework that now links **demand incentives, public-transport electrification, domestic manufacturing and critical-minerals security**, with measurable targets and time-bound schemes. The centrepiece in 2024-25 is the **PM E-DRIVE** scheme (a successor to FAME-II and the short, stop-gap EMPS-2024), complemented by **PM-eBus Sewa** for city buses, and supported by **GST cuts** and **customs-duty exemptions on critical minerals**. Together, these are intended to help India approach its **EV30@30** ambition--*30% of new vehicle sales electric by 2030*--while building local supply chains.[ ](https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2152528)

## **Policy evolution: from vision to instrumented programs**

- **2010-2013: National Electric Mobility Mission Plan (NEMMP-2020).** Established the first national intent, with a vision of accelerating xEV (hybrid and electric) adoption and building Indian manufacturing capacity; formally launched in 2013.
- **2015-2019: FAME-I.** A demand-incentive pilot that seeded early adoption and public-sector trials. (Government archives summarise FAME as the flagship program whose larger Phase-II followed in 2019.)
- **2019-Mar 2024: FAME-II.** ₹10,000-crore outlay (later reported as ₹11,500 crore disbursed/available) focused on demand incentives--targets included **7,000 e-buses, 5 lakh e-3Ws, 55,000 e-4Ws and 10 lakh e-2Ws**. Scheme concluded **31 March 2024**.
- **Apr-Sep 2024: EMPS-2024.** A six-month bridge scheme (₹778 crore) to avoid a policy vacuum for **e-2W and e-3W** incentives immediately after FAME-II ended.
- **Sept 29, 2024 onward: PM E-DRIVE.** Two-year **₹10,900-crore** Central Sector scheme notified by the Ministry of Heavy Industries to support demand incentives for **e-2W, e-3W, e-trucks, e-ambulances**, grants for **e-buses**, **public charging stations**, and **testing-agency upgrades**; EMPS-2024 was subsumed. On **Aug 8, 2025**, its tenure was **extended to 31 March 2028** (same outlay) to accommodate long-cycle segments like **e-trucks and e-buses**.
- **Public-transport pillar (since Aug 2023): PM-eBus Sewa.** Centrally Sponsored Scheme with **₹20,000 crore** central assistance to deploy **10,000 e-buses** on a PPP model; by **July 31, 2025**, **7,293 e-buses** had been sanctioned and over **₹1,062.7 crore** approved for depot and behind-the-meter power infrastructure.

## **What the 2025 framework actually does**

1. **Keeps demand nudges continuous--but targeted.** After FAME-II, incentives are retuned via PM E-DRIVE: short-cycle mass segments (e-2W/e-3W) remain supported, while *new* emphasis is placed on **e-trucks** (with formula-based incentives tied to kWh or ex-factory price, capped by GVW) and **e-ambulances**; **e-buses** move to a *grant* model coordinated with MoHUA.
2. **Treats buses as a system, not a unit sale.** PM-eBus Sewa funds per-km OPEX for 10 years and finances **depot and behind-the-meter power infrastructure**, improving bankability and city-level execution. Press Information Bureau
3. **Builds out charging where it matters.** PM E-DRIVE provisions **~72,000 public chargers** nationally, including **22,000+ for four-wheelers** and **1,800 for buses**, aligned with highway corridors and urban hotspots; by April 2025, BEE reported **thousands of PCS on highways** and expanding Tier-2 footprints, while the BEE **EVYatra** portal shows **tens of thousands** of mapped PCS nationally.[https://auto.economictimes.indiatimes.com/news/industry/india-installs-4557-ev-charging-stations-nationwide-nitin-gadkari-reports/123001149?utm_source=chatgpt.com](https://auto.economictimes.indiatimes.com/news/industry/india-installs-4557-ev-charging-stations-nationwide-nitin-gadkari-reports/123001149?utm_source=chatgpt.com)ETAuto.com[https://auto.economictimes.indiatimes.com/news/industry/india-installs-4557-ev-charging-stations-nationwide-nitin-gadkari-reports/123001149?utm_source=chatgpt.com](https://auto.economictimes.indiatimes.com/news/industry/india-installs-4557-ev-charging-stations-nationwide-nitin-gadkari-reports/123001149?utm_source=chatgpt.com)
4. **Locks in low taxes and cheaper materials.** Since **Aug 1, 2019**, GST on EVs and **EV chargers** is **5%** (vs 28% on ICE vehicles), and **Budget 2024-25** removed basic customs duty on **25 critical minerals** (including lithium and cobalt), followed in **Budget 2025-26** by **full exemptions on scrap/waste of a dozen critical minerals and battery scrap** to feed domestic cell manufacturing and recycling.[https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1580536&utm_source=chatgpt.com](https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1580536&utm_source=chatgpt.com)Press Information Bureau
5. **Aligns with global targets but localizes execution.** India remains a supporter of **EV30@30** (30% new sales electric by 2030). NITI Aayog's 2025 update reiterates the **30% sales share** ambition and calls for regulatory push (ZEV-style mandates, financing for buses/trucks, and hotspot-based charging). NITI Aayog

## **Institutions and "who does what"**

- **Ministry of Heavy Industries (MHI):** Scheme steward for **FAME-II**, **EMPS-2024**, and **PM E-DRIVE**; also funds upgrades to testing agencies (ARAI, ICAT, etc.).
- **Ministry of Housing & Urban Affairs (MoHUA):** Runs **PM-eBus Sewa**, orchestrating OPEX support, depots, and power infra with states and cities.
- **Bureau of Energy Efficiency (BEE), Ministry of Power:** Nodal for **public charging** mapping and standards coordination; maintains **EVYatra** and PCS data.[https://evyatra.beeindia.gov.in/public-charging-stations/?utm_source=chatgpt.com](https://evyatra.beeindia.gov.in/public-charging-stations/?utm_source=chatgpt.com)
- **NITI Aayog:** Strategy, modelling and handbooks (e.g., **EV charging implementation guide**, 2021) and 2025 blueprint for accelerating EV adoption.[https://economictimes.indiatimes.com/industry/renewables/niti-aayog-lays-out-a-blueprint-to-fast-track-ev-adoption-in-india/articleshow/123095721.cms?utm_source=chatgpt.com](https://economictimes.indiatimes.com/industry/renewables/niti-aayog-lays-out-a-blueprint-to-fast-track-ev-adoption-in-india/articleshow/123095721.cms?utm_source=chatgpt.com)

## **Outcomes to date (through mid-2025)**

- **Sales momentum:** India recorded **~2.06 million** EV registrations in the 12 months to **May 2025** (Vahan, excl. low-speed e-2W and excluding Telangana), with FY25 estimates near **~2.0 million** units (IBEF). Growth is broad-based, though **e-2W** slowed in some states as incentives recalibrated.[https://www.ibef.org/industry/electric-vehicle?utm_source=chatgpt.com](https://www.ibef.org/industry/electric-vehicle?utm_source=chatgpt.com)
- **Charging footprint:** BEE reported **4,557 PCS on highways** (as of mid-2025) and a rising Tier-2/3 presence; the **EVYatra** portal shows **>26,000** public charging stations mapped nationwide, reflecting network densification beyond FAME-funded sites.[https://evyatra.beeindia.gov.in/public-charging-stations/?utm_source=chatgpt.com](https://evyatra.beeindia.gov.in/public-charging-stations/?utm_source=chatgpt.com)
- **Buses:** As of **July 31, 2025**, **7,293 e-buses** sanctioned under PM-eBus Sewa, with **₹1,062.7 crore** sanctioned for depots and behind-the-meter power--evidence of institutional capacity building, not just vehicle procurement.[https://www.pib.gov.in/PressReleasePage.aspx?PRID=2152522](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2152522)
- **Policy continuity:** The **extension of PM E-DRIVE to March 2028** (without extra outlay) signals a *fund-limited but time-aware* approach, giving **e-trucks and e-buses** longer gestation to scale.[https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154408](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154408)

## **What changes in 2025 vs earlier phases**

1. **Broader scope than FAME-II.** PM E-DRIVE expands beyond two- and three-wheelers to **trucks and ambulances**, funds **testing labs**, and hard-links **charging rollout** to corridors/cities, whereas FAME-II primarily subsidised vehicle purchases.
2. **Dedicated bus program.** Buses move to MoHUA's **OPEX-backed PPP** model, a shift from pure CAPEX subsidies--more bankable for cities and operators.
3. **Supply-chain realism.** Customs-duty relief on **critical minerals** and battery scrap reflects an explicit *materials security* agenda to complement PLI and Phased Manufacturing Programme (PMP) localization mandates.[https://www.reuters.com/markets/commodities/india-budget-india-scraps-custom-duties-waste-scrap-dozen-critical-minerals-2025-02-01/?utm_source=chatgpt.com](https://www.reuters.com/markets/commodities/india-budget-india-scraps-custom-duties-waste-scrap-dozen-critical-minerals-2025-02-01/?utm_source=chatgpt.com)
4. **From subsidies to standards & mandates.** NITI's 2025 blueprint nudges India toward **regulatory instruments** (e.g., ZEV-type mandates, procurement norms) alongside incentives--consistent with trajectories in leading EV markets.

### **FAQ**

#### **1. What is PM E-DRIVE Scheme 2025?**

PM E-DRIVE is India's flagship EV incentive scheme, launched in September 2024 as a successor to FAME-II. It offers subsidies for electric 2-wheelers, 3-wheelers, trucks, ambulances, and grants for charging stations and testing facilities. Extended until March 2028.

#### **2. How is PM E-DRIVE different from FAME-II?**

Unlike FAME-II, which focused mainly on 2-wheelers, 3-wheelers, and some buses, PM E-DRIVE adds e-trucks, e-ambulances, and strong provisions for public charging infrastructure and testing upgrades.

#### **3. What is PM-eBus Sewa, and why is it important?**

PM-eBus Sewa is a ₹20,000 crore scheme to deploy 10,000 e-buses under a PPP model. It funds **OPEX (per-km cost) for 10 years**, making e-bus operations more viable for cities.

#### **4. How many public EV charging stations does India have in 2025?**

As of mid-2025, India has over **26,000 public charging stations** mapped on the BEE EVYatra portal, with more than **4,500 chargers on highways**.

#### **5. What tax benefits are available for EVs in India in 2025?**

GST on EVs and chargers remains **5%**. Additionally, the 2025 budget removed customs duty on critical minerals like lithium and cobalt, reducing battery costs.

#### **6. What is the EV30@30 target, and is India on track?**

EV30@30 aims for **30% of new vehicle sales to be electric by 2030**. India is progressing, with ~2 million EV registrations in FY25, driven by 2-wheelers, 3-wheelers, and buses.

#### **7. Which ministries manage India's EV policies?**

- **MHI**: Runs PM E-DRIVE and testing infrastructure.
- **MoHUA**: Oversees PM-eBus Sewa.
- **BEE (Ministry of Power)**: Manages charging standards and EVYatra.
- **NITI Aayog**: Provides strategy and future roadmap.

#### **8. What incentives are available for electric trucks in India?**

PM E-DRIVE provides formula-based incentives for **e-trucks**, linked to **battery capacity (kWh)** and ex-factory price, with caps based on Gross Vehicle Weight (GVW).

#### **9. How does India plan to secure critical minerals for EV batteries?**

Budget 2024-25 and 2025-26 removed duties on **critical minerals and battery scrap**. This supports domestic cell manufacturing and recycling under the **Phased Manufacturing Programme (PMP)**.

#### **10. What changes in 2025 vs earlier EV policies like FAME-II?**

Key differences:

- **Wider scope**: Adds trucks, ambulances, and testing upgrades.
- **Bus focus**: OPEX funding through MoHUA instead of CAPEX subsidies.
- **Supply-chain security**: Customs duty relief on minerals and recycling push.
- **Shift toward standards**: NITI exploring ZEV mandates and procurement norms.