New Delhi, July 3 (IANS): The Indian electric vehicle industry grew by 25 percent in 2015's first quarter with the sale of nearly 5,000 vehicles, the Society of Manufacturers of Electric Vehicles (SMEV) said on Friday.

"We are really delighted that the combined efforts of all the stakeholders are having a desirable impact and increased sales in one of the indications of this upbeat scenario," said SMEV's director, corporate affairs, Sohinder Gill in a statement.

One of the key reasons for the rise in sales is because of the subsidies announced by the government, he said, adding that the next step is to focus on technology and work on strong charging infrastructure.

The central government had launched a flagship scheme called 'Faster Adoption and Manufacturing of Electric Vehicles' (FAME) to give a spur to the electric vehicle industry in India, and under it, financial assistance of Rs.795 crore is being provided to electric vehicle manufacturers till 2020 for building infrastructure and R and D facilities, the statement added.

SMEV is the nodal agency of the Indian Electric Vehicle Industry and counts Hero Electric, Mahindra, Avon, Electrothem and others as its members.