India has reached 10.21 million cumulative EV sales, with electric vehicles accounting for 8.25 percent of new vehicle registrations in the fiscal year ending March 2026. Federal initiatives like the PM E-DRIVE scheme and Production-Linked Incentives for automobiles and battery storage have been instrumental in reducing costs and de-risking investments for manufacturers.
State-level strategies vary significantly. Gujarat, despite hosting 12 OEMs and numerous battery manufacturing facilities, saw only 3.63 percent of new vehicle sales as electric. Conversely, Tamil Nadu matched its manufacturing push with demand-side incentives, such as SGST reimbursements and road tax exemptions, achieving an 8.24 percent EV share in new vehicle sales.
Uttar Pradesh has become India's largest EV market with 1.72 million registrations, driven by commercial three-wheelers and over 2,300 public charging stations. This demand-first approach successfully attracted manufacturing, including a 70-acre Ashok Leyland plant in Lucknow. Meanwhile, Karnataka leads in private two-wheeler adoption, supported by 6,000 public charging stations.
Delhi utilizes a regulatory approach, mandating the phase-out of internal combustion engine vehicles for fleet operators. The city aims for 95 percent of new registrations to be electric by 2027 and maintains the country's largest electric bus fleet of 4,850 units. Maharashtra leads in manufacturing with 85 facilities and recorded 280,000 EV sales in the last fiscal year.
Smaller states are also implementing targeted measures. Andhra Pradesh offers SGST reimbursements and electricity duty rebates, while Telangana provides tax exemptions and purchase discounts for government employees. Experts emphasize that long-term success requires a systemic approach, balancing manufacturing capacity, consumer demand, and grid readiness.
