EV Policies That Made Headlines in 2025 

EV sales grew 16.9% in FY2025 to approximately 1.97 million units (up from 1.75 million in FY2024), driven largely by two- and three-wheelers, which made up 91% of EV sales. Consumer interest is strong: one survey found 83% of respondents willing to buy a new-energy vehicle by 2030.  

Yet, penetration remains modest (8.4% in Q1 FY26), prompting policymakers to move beyond subsidies toward more robust mandates and incentives.  
 
Below is a review of 2025’s headline EV policies, their key provisions, and their likely impact on adoption in 2026. 

Maharashtra’s Ambitious EV Policy 2025 

Maharashtra’s new EV policy doubles subsidies (up to ₹2 lakh per vehicle) and mandates toll-free travel for EVs. In May 2025, the state approved a ₹1,993‑crore, five-year policy (more than double its previous EV budget) aiming for a 30% EV sales share by 2030.  

Key incentives include: 

• Up to ₹2 lakh purchase subsidies on electric four‑wheelers used for commercial transport (covering 25,000 cars and 1,500 buses). 

• 100% exemption from road tax and registration fees.  

• Toll-free travel for all four-wheel EVs on major expressways (e.g., Mumbai–Pune, Samruddhi). 

• Charging stations every 25 km on highways and at government office parking lots. 

Maharashtra, India’s #2 EV market (FY25 sales approx. 246,221 units, 12.5% of India’s total), is leveraging these incentives to accelerate adoption. Passenger EVs grew 18% in FY25, and the combination of subsidies and toll savings should make the EV switch more attractive for families and businesses. 

Karnataka’s Clean Mobility Policy 2025–30 

In February 2025, Karnataka launched a holistic “Clean Mobility” policy to attract ₹50,000 crore in investments and create 1 lakh jobs.  

Key highlights:   

• Capex subsidies, up to 25% of total investment (20% even in Bengaluru), for EV and charging projects. 

• Expansion of charging infrastructure: the policy targets 2,600 new charging stations via PPPs.

• Clean Mobility Clusters in Gauribidanur, Dharwad, and Harohalli  to co-locate OEMs, suppliers, R&D and testing facilities.  

• New subsidies for fast-charging, battery-swapping, and  hydrogen-fueling stations. 

• Expanding EV-related training programs in ITI and polytechnics.  

With approximately 2.5 lakh registered EVs and 5,400 public chargers already, Karnataka is building a robust ecosystem for clean mobility.  

Odisha’s Draft EV Policy 2025 

Unveiled in September 2025, Odisha’s draft EV policy aims to revive its lagging EV market. With only 9% EV penetration against a 20% target, the state now sets a bold 50% EV target for new registrations by 2030.  

Key measures:  

• Expanded subsidies for two-, three-, and four-wheelers,  trucks, buses, and retrofitted vehicles 

• Mandatory fast chargers at every fuel pump on  highways  and major bus terminals.  

• Viability Gap Funding for highway chargers.  

• Subsidize capital costs for 100 public battery‑swap stations (a first in India).  

• Three R&D centers of excellence, a ₹15 crore EV R&D grant, and incubation hubs.  

• Swift electrification of government fleets: all official vehicles  within 6 months, school buses  and ambulances within 12 months. 

Delhi’s Next-Gen EV Policy (Draft) 

In mid-2025, Delhi drafted its EV Policy 2.0, building on its 2020 framework.  

Key provisions:  

• Strong tax breaks and new cash subsidies for electric two- and three-wheelers.  

• Women buyers of e-2Ws are eligible for up to ₹36,000 off  purchases. 

• New e-2Ws to enjoy ₹10,000 per kWh incentive (up to ₹30,000 per bike). 

• Incentives for e-buses and commercial e-cars (details still to be finalized).  

• Citywide charging and battery-swapping networks.  

• Estimated 20,000 jobs in manufacturing and infrastructure.  

Delhi’s draft policy focuses on mass adoption, targeting everyday riders and operators to maximize emission reductions. 

Uttar Pradesh’s Charging Infrastructure Incentives 

In mid-2025 Uttar Pradesh became the first Indian state to subsidize the upstream costs of charging stations. 

Key changes:  

• The policy offers a 20% capital subsidy (up to ₹10 lakh) that covers almost all equipment costs.  

• Lowers investment hurdle for developers, encouraging more projects. E.g., instead of ₹25 lakh of downstream investment to qualify, developers only need a ₹25 lakh project, including upstream costs. 

• Mapping of 450+ upcoming chargers across the state.  

• Integration of approx. 740 electric buses and the identification of 116 “green corridors”. 

The policy reduces upfront costs and accelerates infrastructure build-out, supporting UP’s fast-growing EV market (approx. 1.27 million registered EVs).  

National EV Manufacturing Scheme (SPMEPCI) 

In June 2025, the central government launched the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), targeting global OEMs to build EV plants here.  

Key provisions:  

• Minimum investment of ₹4,150 crore (US$486M) within  three  years to qualify for duty incentives.  

• Local content requirements: 25% in three years and 50% in five years to ensure technology transfer and a domestic supply chain.  

• Customs and excise breaks for large-scale EV manufacturing.  

SPMEPCI aims to position India as a global auto-manufacturing hub, potentially adding hundreds of thousands of EVs annually and creating significant employment. 

Policy Debate: NITI Aayog’s EV Vision 

The policy landscape was also shaped by think-tank proposals. In August 2025, NITI Aayog released a report titled “Unlocking a $200 Billion EV Opportunity”, recommending a shift from subsidies to mandates.  

It suggested national BEV targets and pilot programs to electrify 100% of buses, paratransit, and freight vehicles in five cities. A national EV policy with phased mandates requiring a growing share of new trucks and cars to be electric was called for. NITI also stressed blended financing for e-buses/trucks and expanded fuel-efficiency norms. While not a formal law, NITI’s blueprint adds momentum to the debate: it’s a signal that India’s EV push may soon move toward regulation-driven adoption. 

Impact on Adoption & Outlook for 2026 

Collectively, these policies should accelerate India’s EV trajectory. EV sales grew strongly in 2025: 

• Two-wheeler registrations up 21% YoY to approx. 1.15 million 

• Three-wheelers up 10%  

• Passenger EVs topped 100,000 units for the first time.  

Charging infrastructure is growing fast too, a fivefold increase since 2022 (approx. 29,000 public chargers by mid-2025). Incentives and infrastructure are reducing cost and range anxieties, driving demand for EVs. 

Looking ahead, effective implementation could push India’s EV share beyond today’s 3–4% toward the 2030 targets. Automakers and startups are scaling up production of new EV models, with analysts expecting electric four‑wheeler output to nearly triple.  

In summary, 2025’s bold EV policies, from state subsidies to national mandates, are poised to electrify India’s roads in 2026 and beyond, driving cleaner transport and opening new economic frontiers.