Rise in EV Adoption: How Government Initiatives Are Helping?

The data comes from the e-vahan portal of the Ministry of Road Transport & Highways, and it proves that the electric vehicle market is doing really well, with no signs of slowing down. Read on to know more!

Shreshtha Verma
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Rise in EV Adoption: How Government Initiatives Are Helping

Over the last two years, from June to December, an impressive 15,04,012 electric vehicles (EVs) have been registered in the country. This big increase shows that more and more people are choosing eco-friendly ways to travel. The data comes from the e-vahan portal of the Ministry of Road Transport & Highways, and it proves that the electric vehicle market is doing really well, with no signs of slowing down.

Total no. of Electric Vehicles Registered in last 2 Years for Specified Months mentioned in the table

Total No. Electric Vehicle Registered


Grand Total








Year 2022









Year 2023









Government Initiatives Fueling Electric Vehicle Adoption

FAME India Scheme Powers Growth

In a bid to accelerate the adoption of electric vehicles across the nation, the Indian government has implemented several key initiatives. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) Scheme, notified in Phase-II for a period of 5 years starting from April 1, 2019, has played a pivotal role. With a substantial budgetary support of Rs. 10,000 crores, the scheme aims to incentivize the manufacturing and usage of electric vehicles.

Production Linked Incentives Boost Electric Vehicle Production

The Production Linked Incentive (PLI) Scheme for the Automotive Sector, approved on September 15, 2021, with a budgetary outlay of Rs. 25,938 crores, has provided a significant boost to electric vehicle manufacturers. Under this scheme, incentives of up to 18% are offered specifically for electric vehicles, further encouraging their production and adoption.

National Programme on Advanced Chemistry Cells (ACC) Battery Storage

In a bid to bolster the production of advanced chemistry cells (ACC) for electric vehicles, the government approved the PLI scheme for the National Programme on ACC Battery Storage. With a budgetary outlay of Rs. 18,100 crores, the scheme aims to establish a competitive ACC battery manufacturing setup with a capacity of 50 GWh. Additionally, 5GWh of niche ACC technologies are covered under this scheme, fostering innovation in the electric vehicle battery space.

Fiscal Incentives to Boost Consumer Adoption

The reduction of Goods and Services Tax (GST) on electric vehicles and chargers/charging stations to 5% has made electric mobility more economically viable. This move is expected to contribute significantly to the reduction of the overall cost of electric vehicles for consumers.

Policy Measures Easing Electric Vehicle Adoption

Green License Plates for Battery-Operated Vehicles

In a bid to distinguish and incentivize electric vehicles on the road, the Ministry of Road Transport & Highways (MoRTH) has announced the issuance of green license plates for battery-operated vehicles. This initiative not only promotes the visibility of electric vehicles but also exempts them from certain permit requirements.

Road Tax Exemption Encourages Affordability

To further boost the affordability of electric vehicles, MoRTH has issued a notification advising states to waive road tax on EVs. This strategic move is anticipated to significantly reduce the initial cost burden on consumers, making electric vehicles a more attractive option.

The combined impact of these government initiatives and policy measures has created a conducive environment for the rapid growth of the electric vehicle market in India. With the number of registered electric vehicles surging over the past two years, it is evident that the nation is swiftly embracing green mobility solutions, marking a paradigm shift towards sustainable and environmentally friendly transportation.

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