The Ministry of Heavy Industries (MHI) has expedited India’s shift towards electric vehicles by ramping up investments under the Production Linked Incentive Scheme for the auto sector and successfully launching the PM E-DRIVE initiative. In 2024–25, approximately Rs 1,999.94 crore was allocated under the PLI–Auto Scheme, supporting over 13.61 lakh electric vehicles, including two-wheelers, three-wheelers, cars, and buses.
The PM E-DRIVE Scheme, initiated on September 29, 2024, with a budget of Rs 10,900 crore, aims to accelerate the adoption of electric vehicles, establish charging infrastructure, and foster an electric vehicle manufacturing ecosystem in India. The scheme includes subsidies totaling Rs 3,679 crore for incentivizing more than 28 lakh EVs, along with an allocation of Rs 4,391 crore for deploying 14,028 e-buses by public transport agencies.
By December 31, 2025, claims worth Rs 1,703.32 crore have been disbursed, with over 21.36 lakh vehicles sold under the scheme. Additionally, the government-owned Convergence Energy Services Limited (CESL) has finalized a tender for 10,900 e-buses in five major cities in phase 1. The ministry is also executing the Scheme to Promote Manufacturing of Electric Cars (SMEC), launched on March 15, 2024, to attract global investments, position India as an electric vehicle manufacturing hub, and enhance domestic value addition.
