EV Penetration Hits Nearly 10% - Testing Infrastructure Gets Rs 776 Crore
- At the PM E-DRIVE industry dialogue on 25 September 2026 at ICAT Manesar, officials said electric two-wheeler penetration reached 9.9% during April-August FY27.
- The Centre sanctioned Rs 776.29 crore to upgrade testing agencies ICAT, ARAI, GARC and NATRAX for EVs, batteries, clean technologies and advanced automotive components.
- PM E-DRIVE's overall outlay was stated as raised to Rs 11,900 crore, with e-2W incentives extended to March 2028 and the segment target lifted from 24.8 lakh to 45.8 lakh vehicles.
- Testing capacity is the qualification gate; the upgrade reduces one friction point but does not localise the cell or power-electronics layers.
- At the PM E-DRIVE industry dialogue on 25 September 2026 at ICAT Manesar, officials said electric two-wheeler penetration reached 9.9% during April-August FY27.
- The Centre sanctioned Rs 776.29 crore to upgrade testing agencies ICAT, ARAI, GARC and NATRAX for EVs, batteries, clean technologies and advanced automotive components.
- PM E-DRIVE's overall outlay was stated as raised to Rs 11,900 crore, with e-2W incentives extended to March 2028 and the segment target lifted from 24.8 lakh to 45.8 lakh vehicles.
- Testing capacity is the qualification gate; the upgrade reduces one friction point but does not localise the cell or power-electronics layers.
- The Hindu BusinessLine (25 Sep 2026): https://www.thehindubusinessline.com/economy/electric-two-wheeler-penetration-nears-10-centre-allocates-776-crore-to-upgrade-ev-testing-infrastructure/article71509522.ece
- ANI (25 Sep 2026): https://www.aninews.in/news/business/government-says-pm-e-drive-supported-sales-of-over-265-lakh-evs-pushes-indigenous-manufacturing-charging-infrastructure20260804153448/
- Dainik Jagran English (25 Sep 2026): https://english.dainikjagranmpcg.com/national/pm-e-drive-government-to-hold-industry-dialogue-on-ev-growth/article-32985
The development
On 25 September 2026, at the PM E-DRIVE Dialogue with the Industry at ICAT Manesar, government officials reported that electric two-wheeler penetration had reached 9.9% in April-August FY27 and announced a Rs 776.29 crore sanction to upgrade the four national automotive testing agencies - ICAT (Manesar), ARAI (Pune), GARC (Chennai) and NATRAX (Indore) - for electric vehicles, batteries, clean technologies and advanced automotive components. The scheme's overall outlay was stated as raised to Rs 11,900 crore, with e-2W incentives extended to March 2028 and the segment volume target lifted from 24.8 lakh to 45.8 lakh vehicles.
Why it matters
Adoption numbers alone do not create an industrial base. Testing capacity is the qualification gate for batteries, power electronics and vehicle systems. Expanding ICAT, ARAI, GARC and NATRAX for EV and battery work is an upstream move that determines how fast domestic designs can be certified and scaled.
The dependency and systems frame
India''s EV push still depends on imported cells, power electronics and, in many cases, testing protocols and equipment. A Rs 776 crore upgrade of the testing stack reduces one friction point; it does not localise the cell or semiconductor layers. The systems question is whether the upgraded labs become bottlenecks or enablers for Indian battery and component makers seeking domestic and export qualification.
What to watch
- Timeline and scope of the Rs 776 crore upgrades at the four testing agencies.
- Whether domestic battery and power-electronics firms begin using the upgraded facilities for certification at scale.
- Conversion of the raised 45.8 lakh e-2W target into sustained local manufacturing content rather than assembly of imported kits.
Track the systems we watch
Signals, reports and briefings on India’s industrial transformation.