India commits Rs 1.25 lakh crore to EV ecosystem

India is seeing significant investment and growth in its electric vehicle (EV) sector. The central government and various states have committed over Rs 1.25 lakh crore to bolster the EV ecosystem. This includes Rs 90,000 crore from the Centre for demand incentives, charging infrastructure, manufacturing support, and research through schemes such as FAME, PM E-DRIVE, and PM-eBus Sewa. State and Union Territory contributions include Rs 37,613 crore, alongside various tax exemptions and regulatory measures to attract manufacturing investments.

As a result of these initiatives, EV penetration in India reached 8.25% by 2025-26, with 2.5 million vehicles registered in that fiscal year alone. Two-wheelers represent the largest segment of this volume.

Amidst this broader industry growth, Ola Electric Mobility has secured a Rs 95.8 crore payout under the government’s Production Linked Incentive (PLI) Auto scheme for FY27. This follows a previous Rs 366.7 crore payout for FY25. The incentive provides liquidity for the company as it manages cash burn, reporting negative operating cash flow in FY26 and the first quarter of FY27. Despite financial challenges, Ola Electric reported a 94% sequential increase in vehicle deliveries for Q1 FY27, reaching 39,192 units.