TL;DR
India's 2025 EV policy, through FAME III and the PM E-DRIVE scheme, enhances subsidies, mandates safety standards, and expands charging infrastructure to accelerate electric mobility adoption.
India has significantly bolstered its electric vehicle (EV) policy framework in 2025, aiming to accelerate the transition to electric mobility across the nation. Key initiatives include the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME III) scheme, which now emphasizes stricter battery safety standards, broader subsidy coverage for two-wheelers and fleet vehicles, and a strong focus on boosting local manufacturing under the 'Make in India' initiative. These measures are designed to instill greater confidence and trust in the EV ecosystem among consumers and businesses alike.
Complementing FAME III is the PM E-DRIVE scheme, introduced in late 2024, which broadens the scope of incentives beyond just cars to include two-wheelers, three-wheelers, buses, and even e-ambulances. This scheme also directs investments towards expanding charging infrastructure nationwide, making EV adoption a more practical choice. Furthermore, the 56th GST Council meeting in September 2025 maintained the Goods and Services Tax on EVs at a low 5% and reduced GST on renewable energy devices, making both EVs and associated charging solutions more affordable. These integrated policies are crucial steps towards India's ambitious goal of achieving 30% EV sales by 2030.
