The adoption of electric vehicles (EV) in India is poised to see a boost in adoption numbers driven by a rapidly expanding charging network, growth in battery swapping models and government policies such as the PM e-drive.
The respective sector demonstrated strong momentum in 2024, with total sales reaching nearly 1.95 million units across segments. Industry experts see this growth trajectory continuing into 2025, supported by expanding charging infrastructure, battery swapping networks and favorable government policies.
Alluding to the performance of the sector in 2024 ICRA Corporate Ratings Senior Vice President Srikumar Krishnamurthy said, “Electric vehicles in India continued to gain traction in 2024 supported by factors like government incentives, changing consumer needs new product launches, technological advancements, etc. Nevertheless, the EV penetration levels remain modest, particularly in cars and trucks, though adoption in two-wheelers and three-wheelers and buses is better. The government’s policy measures remain supportive; the PM e-drive scheme is expected to aid faster EV adoption apart from the development of the EV manufacturing ecosystem. While the transition is gradual, the EV sector holds promise as a cornerstone for sustainable mobility, with significant growth potential in the coming years."
According to data from Vahan Dashboard 19,48,957 EVs were sold between January and December 2024. Electric two-wheelers dominated the market with sales translating to 1.2 million units followed by the three-wheeler segment that sold 6,94,466 units. 
Meanwhile, the electric car segment continued to show steady progress with 99,848 units sold while the electric-bus sales experienced substantial growth increasing by 39% in CY2024, reaching 3,834 units. 
Ola Electric dominated the two-wheeler segment with a 35.42 percent market share followed by TVS (19.49 percent), Bajaj (16.58 percent), Ather (11.08 percent) and Hero (3.78 percent).
In the three-wheeler passenger segment, Mahindra Last Mile Mobility led with approximately 10 percent market share, while Bajaj Auto demonstrated exceptional growth. The three-wheeler cargo segment saw Mahindra LMM maintaining leadership with about 11 percent market share, while Bajaj Auto showed impressive growth to capture 4.7 percent market share. 
In the electric car segment, Tata Motors maintained dominance with roughly 62 percent market share, followed by MG Motor India at 22 percent, Mahindra & Mahindra (7 percent), BYD (2.85 percent), and PCA (2.19 percent), while in the electric bus segment, Tata Motors retained its leadership position with all major players showing significant sales growth.
2025 Outlook
Alluding to the sectoral outlook for 2025, Altigreen Propulsion Labs Chief Executive Officer Amitabh Sharan noted, “The electric vehicle industry in India stands at a transformative crossroads in 2025, with the market projected to reach USD 235 billion by 2030 at a remarkable CAGR of 49 percent. The sector will witness remarkable growth (especially in commercial vehicles) in 2025, driven by a combination of TCO benefits, technological advancements for better quality vehicles and driveability, and changing consumer perception towards EVs. However, the road to widespread EV adoption will need to overcome significant challenges viz-a-viz innovative vehicle financing, urban charging infrastructure, consistency in policy and regulatory framework, supply-chain localisation (for price parity with ICE) and very importantly skill development through industry-academia partnerships.”
Revfin Founder Sameer Aggarwal said, “2024 has been a defining year for India’s automotive sector, marked by accelerated adoption of electric vehicles, advancements in sustainability, and the integration of innovative technologies. Building on this momentum, 2025 is expected to be a year for EV adoption. With an intensified focus on developing robust EV charging infrastructure and scaling up battery-swapping networks, transitioning to electric mobility will become more seamless for consumers. Coupled with innovative financing models and targeted efforts to reach underserved markets, the industry is set to overcome accessibility barriers and make sustainable mobility a reality for all. Collaboration between automakers, policymakers, and technology providers will ensure a cohesive ecosystem, enabling India to lead the way in sustainable and inclusive mobility solutions.”
Godawari Electric Motors Director Hyder Ali Khan noted, “As we look ahead to 2025, we are excited about the robust expansion of our Eblu product portfolio, catering to the evolving needs of our customers. Additionally, we have some promising public and private orders in the pipeline, which will further accelerate our growth trajectory. We remain committed to driving innovation and sustainability in the EV sector and look forward to continued collaboration with our stakeholders to shape a cleaner and greener future for mobility.”
Zypp Electric Chief Executive Officer Akash Gupta revealed plans for 2025 along with the sector outlook and stated, “Looking ahead to 2025, Zypp Electric is committed to deploying 200,000 electric vehicles across the country in the next 12-18 months and we will double down on innovation, fleet expansion and partnerships to meet growing demand. We will focus on bolstering EV charging infrastructure, enhancing intelligent fleet management, and contributing to India's net-zero goals. Together, we aim to revolutionise last-mile logistics and make green mobility the norm for businesses and communities alike.”
On the components front, Automotive Component Manufacturers Association Director General Vinnie Mehta averred, “The Indian auto component industry is poised for robust double-digit growth in FY25, driven by strategic efforts to reduce import dependence and bolster exports. The electric vehicle component segment is witnessing remarkable year-on-year growth, propelled by the surging demand for sustainable mobility solutions. Key drivers include advancements in electric powertrains and battery systems, supported by increased investments in localization, R&D, and progressive government policies. These developments underscore the industry’s commitment to innovation, self-reliance, and establishing India as a prominent global manufacturing hub."
As India furthers its journey towards carbon neutrality within the mobility sector, EV adoption is slated to accelerate even in the luxury car segment. According to a news report citing Federation of Automobile Dealers Associations, the luxury EV market grew by 6.7 percent in 2024 despite decline in sales. 
BMW witnessed the highest sales followed by Mercedes Benz India, Volvo, Audi and Porsche. 

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In a significant move for sustainable aviation infrastructure, Eicher Trucks and Buses, a division of VE Commercial Vehicles, has supplied its first fleet of all-electric tarmac coaches to IndiGo airlines. The delivery of six Eicher Skyline Pro-E 12-metre buses inaugurates a strategic partnership centred on clean energy and operational efficiency, marking Eicher's inaugural entry into the aviation ground support equipment sector.

Deployed at Bengaluru’s Kempegowda International Airport, these zero-emission buses are engineered for the rigours of airport tarmac operations. With a mission to safely ferry passengers between the terminal and their aircraft in utmost comfort, the buses feature a high-capacity layout with seating for 17 passengers plus a driver, along with ample space for 52 standing occupants.

Its advanced lithium-iron phosphate battery and CCS2 fast-charging system are designed to sustain continuous operation. For a smooth and stable ride, the vehicle is equipped with full air suspension, power-assisted steering, and disc brakes on all axles. This initiative is a key part of IndiGo’s broader strategy to minimise the environmental impact of its operations.

Suresh Chettiar, Executive Vice President – Bus Division, VECV, said, "We are honoured to partner with IndiGo in their journey towards greener and sustainable ground operations at Kempegowda Airport – recognised for its striking aesthetics and sustainable practices. With a broad range of buses optimised for demanding applications and backed by connected 24X7 service, Eicher is already a familiar name for citizens, school children and factory staff in Bengaluru. With these tarmac coaches, Eicher stands committed to sustainably transporting the 42 million passengers that use this gateway to India’s Silicon Valley each year.”

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SnapE Cabs, an electric vehicle mobility company, has secured USD 2.5 million in a bridge round led by Inflection Point Ventures. This infusion of capital will be directed towards leasing new EV cabs, covering operational expenses and enhancing the company's technological product development.

The company has reached a significant financial milestone by achieving EBITDA positivity. This success is underpinned by substantial growth, including a fleet that now exceeds 1,000 electric vehicles. SnapE Cabs has garnered over 1.2 million paying users and facilitated more than 3.2 million rides, culminating in gross revenues of INR 1.20 billion. Its recent strategic expansion into the Delhi market, in partnership with Rapido, has already proven profitable with an initial deployment of 200 cars.

A key to SnapE's competitive edge is its unique operational model, which is based on full ownership of its electric fleet and exclusive partnerships with charge point operators. This ‘EV as a Service’ approach ensures high vehicle availability. The company enjoys operating costs 60-70 percent lower than traditional cabs, allowing for competitive pricing without compromising profitability. Furthermore, SnapE demonstrates remarkable efficiency with a customer acquisition cost of just 0.8 percent of revenue and a 90 percent rider retention rate. Future scalability is anchored in ambitious B2B plans, including a collaboration with Rapido to deploy 5,000 cabs across India within two years.

Founded by Mayank Bindal, an industry veteran with over 15 years of telecom experience and a master’s degree in finance, SnapE Cabs currently operates in Kolkata and is expanding into the Delhi-NCR region. The company supports its operations with its own proprietary charging network.

Mitesh Shah, Co-Founder, Inflection Point Ventures, said, “The demand for clean and sustainable vehicles is growing globally. The ride-hailing platforms are no exception. With an increasing number of people using ride-hailing services, this sector urgently needs a greener alternative. SnapE Cabs is addressing this by not only offering EV cab services but by also building a supportive infrastructure. Its model is both environmentally friendly and financially sustainable, achieving growth without burning cash for customer acquisition, discounts and fleet operations. The recent tie up with Rapido further strengthens the company mission for India’s EV adoption and sustainable goal.”

Mayank Bindal, Founder and CEO, SnapE Cabs, said, “We’re not just expanding; we’re delivering profitability at scale. With IPV backing us in this bridge round, SnapE has already deployed 200 electric cabs in Delhi in the last three months, which have been profitable from day one. Over the next 12 months, we’re adding another 1,000 cars, not to chase growth metrics but to meet a very real supply gap left open in the market. Our focus shifts from a demand aggregation to a supply-led infrastructure model empowers other demand aggregators, enhances utilisation and de-risks margins. In a sector built on burns, recent disruptions have created visible white space and squeezed up margins; SnapE is proving that EV fleet economics work today not just on projections. This round accelerates our mission to build the backbone that enables India’s EV mobility vision for 2030 – clean, scalable and built on fundamentals.”

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The third largest automobile market saw a staggering 2,142,565 units of electric vehicles sold between September 2024 and August 2025, according to data from Vahan Dashboard (excluding Telangana).

The electric vehicle sales in India witnessed mixed sales in August, 2025, according to the same source. Statistics put electric two-wheeler sales at the lead with 104,373 units compared to July’s 103,469 units, followed by four wheelers at 17,387 units from 16,127 units a month earlier and the rest of the pie was goods carriers, buses and three-wheeler cargo carriers.

The dashboard also reported a decline in electric rickshaw sales that dell to 36,962 from 39,782 in July, followed by electric three-wheeler L5 passenger (18,007 from 20,446) and electric carts (6,213 from 6,817).

Nonetheless, the market sentiment about this vehicular segment seems to be strong. Exuding confidence on World EV Day 2025, Deepak Manwani, Head of Operations and Revenue at Yuma Energy, told Motoring Trends, “As India’s automotive sector accelerates towards electrification, the momentum is unmistakable in two- and three-wheelers. What began with fleet use cases is now rapidly entering personal mobility with adoption climbing year-on-year.”

He noted that supportive government policies such as FAME II, the newly launched PM e-DRIVE scheme and state-level EV mandates for EV adoption as well as for charging and swapping infrastructure creation are creating a strong policy tailwind.

There is also an influx of customised financing options for EVs, which is providing further impetus to the two-wheeler and three-wheeler segments. Industry projections indicate that by 2030, nearly 35–40 percent of new two-wheelers and over 50 percent of three-wheelers could be electric with more ambitious scenarios targeting up to 80 percent penetration in these categories.

Sharing the same confidence, Som Kapoor, Partner at EY India, noted, “EVs currently make up about five percent of the market and we’re at an inflection point. Growth is inevitable and the consistent share across different vehicle sizes signals strong policy support from the government. EV adoption will continue to expand as part of the overall auto market.”

He shared that post-pandemic, the Indian automobile market has witnessed stabilised growth at around 3–4 percent, rather than in double digits. With the upcoming GST changes, a boost in small cars and overall volume is expected, especially in the second half of this year.

“In terms of EVs, the two-wheelers segment, which already has a growing momentum, will continue in the path. We expect strong growth in segments where vehicles work on closed routes or where assets are monetised daily, such as three-wheelers and commercial vehicles. These areas will see tremendous adoption,” added Kapoor.

Market command

Despite a modest share in the entire automobile market currently, EVs are expected to gobble at least one-third of the pie. Alluding to this, Manwani noted, “By the end of this decade, we expect electric vehicles to command nearly a third of India’s automotive market with two and three-wheelers at the forefront of this shift. Projections indicate that up to 70–80 percent of new scooters, motorcycles and electric-rickshaws could be electric by 2030, while passenger cars and buses steadily build towards 20–25 percent adoption.”

At the global level, where there are outliers like China and the Nordics leading the EV penetration, India is broadly in line with other major markets and the adoption levels are comparable to its global peers, noted Kapoor.

Furthermore, the torch bearer for EV adoption till the end of the decade is expected to be two-wheelers and three-wheelers. “These are the vehicles that define our cities – scooters weaving through traffic, delivery bikes bringing food to our doors and rickshaws ferrying millions on their daily commutes,” said Manwani.  

He added, “They are the lifeblood of urban mobility, and because they run hard and run often, they are also the first to embrace the undeniable economics of going electric. Cars, meanwhile, will follow steadily, starting with city users and early adopters who see EVs as both aspirational and practical for daily city commutes. And then there are our commercial fleets, buses connecting cities, trucks and vans moving goods across states, slowly but surely shifting to electric because the savings are too big to ignore.”

Another boon for the indigenous industry will be collaborations, according to Kapoor. “As Chinese collaboration opens up, we expect to see technology transfers and joint ventures that can accelerate India’s EV ecosystem. These partnerships will be valuable for scaling both manufacturing and innovation,” he contended.

Drawing on the same lines, Omega Seiki Mobility Chairman Uday Narang noted, “Over the past year, India’s EV sector has moved from experimentation to consolidation with stronger players and sustainable models emerging. EV three-wheelers, both passenger and cargo, along with new-age electric trucks, especially in the 1–1.5 tonne category will be the real growth drivers of this market.”

Commenting on current market domination of EVs, Kazam Chief Executive Officer Akshay Shekhar opined, “India's EV narrative is transitioning from initial curiosity to industrial scale. It is not only from the vehicles but also from charging infrastructure and software orchestration. In the next five years, we anticipate chargers to be as pervasive as fuel pumps for three- and two-wheelers with charging equipment closely integrated into fleet operations, home installations and e-commerce logistics.”

Supply and power

Volks Energie Chief Executive Officer Piyush Goyal opined that the world is moving towards largescale adoption of clean mobility and sustainable energy and that companies in India are feeling that effect.

“What started as a symbolic initiative five years ago, has turned into a global movement today as the world collectively and rapidly moves towards large-scale adoption of clean mobility and sustainable energy. This adoption reflects not only a technological change and preference but also a shift in the societal expectations from the automotive and renewable industries overall. Consumers today demand cleaner and more resilient energy systems,” he stated.

Moreover, the Central Government’s ambitious plans to make the country an export hub can well be extended to electric vehicles. Alluding to the strategy, Kapoor stated, “Our immediate priority should be strengthening the local market. That said, companies like Maruti are already exporting EV models before bringing them to Indian customers. India has the technological capability and manufacturing infrastructure to grow as an export hub over time. Steady progress will be key.”

While he noted that currently the three main challenges for higher penetration are charging infrastructure, consumer mindset shift towards EVs and high upfront cost of ownership, private charging access is seen as a crucial.

“In India, many homes lack dedicated parking slots, making at-home charging challenging. Until that improves, public charging needs significant expansion. Both private and public infrastructure must evolve to support mass adoption,” noted Kapoor.

Another barrier pointed out was the reliance on imported components. According to Manwani, “India is heavily reliant on imported components for its EVs, especially batteries and advanced electronics, which makes India vulnerable to any kind of supply shocks due to changing geo-political scenarios. The current geo-political uncertainties have caused production disruptions in the last six months. And to overcome this, India needs to have a long-term plan to become self-reliant on cell manufacturing, rare earth magnet production as well as cultivating alternative sources of lithium and other metals essential for sustaining India’s EV ecosystem.”

Motwani also added that cell prices have dropped by as much as 40–50 percent in the last 24 months and this has certainly helped spur new demand in India. This has also meant larger battery packs in vehicles, thereby helping reduce range anxiety and making EVs a viable option in a market where charging infrastructure is still catching up.

For swapping players, this has been a boon as reducing cell and battery price means faster asset deployment due to lower capex spend. This has helped drive large scale transformation in commercial mobility in line with the policy push from various quarters.

Kapoor also noted a need to change the direction of incentives. “So far, incentives have largely supported the supply side. We now need demand-side incentives, which are direct benefits to consumers that make EV adoption more attractive,” he said.

Alluding to the growing demand for EVs, Trontek Chief Executive Officer Samrath Singh Kocchar opined, “India's EV ramp-up is being driven by affordable battery prices, policy incentive and fast two-wheeler electrification but true long-term play will be in battery technology, circularity and systems thinking. Over the next five years, we expect major strides in energy density and fast-charging with battery-swapping and modular solutions gaining momentum in fleet operations.”

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VinFast has officially entered India's burgeoning electric vehicle market with the launch of its two made-in-India premium SUVs, the VF 6 and VF 7, starting at INR 1,649,000 and INR 2,089,000 (ex-showroom), respectively. This strategic introduction represents a significant step in the company's global expansion and underscores its commitment to supporting India's transition towards sustainable mobility. The new models are engineered to meet the specific demands of Indian consumers, combining advanced technology, safety and performance to redefine the premium EV ownership experience.

Designed with Indian families in mind, the VF 6 is a compact SUV that blends a sophisticated design with practical functionality. It is offered in three variants – Earth, Wind and Wind Infinity – each providing a distinct set of features. The model boasts an ARAI-certified range of up to 468 kilometres and supports rapid charging, capable of going from 10 percent to 70 percent battery in approximately 25 minutes. Its spacious interior, generous wheelbase and high ground clearance are tailored for comfort and practicality. Standard and upgraded features across the trims include a large infotainment screen, vegan leather upholstery, ventilated front seats, advanced driver-assistance systems (ADAS) and a comprehensive suite of safety technologies including seven airbags.

The larger VF 7 SUV presents a bold design and is available in five variants, including Earth, Wind, Sky, Wind Infinity and Sky Infinity, with both front-wheel and all-wheel-drive configurations. It offers a choice of two battery packs, with the top-tier model delivering an impressive range of up to 532 kilometres. Performance is a key highlight, with the dual-motor Sky variant accelerating from 0 to 100 kmph in just 5.8 seconds. The VF 7 is equipped with a host of premium amenities as standard, such as a coloured head-up display, panoramic glass roof on Infinity trims, a powerful audio system and sophisticated cabin technology.

To ensure a seamless ownership experience, VinFast is establishing a robust national infrastructure. This includes a planned network of dealer touchpoints and service workshops across 27 cities. The company has also forged key strategic partnerships to provide tailored financing options, a nationwide charging infrastructure and comprehensive after-sales support. A cornerstone of its local commitment is a new state-of-the-art manufacturing facility in Thoothukudi, Tamil Nadu, where the vehicles will be assembled for the domestic market and future export. Leveraging its international experience from operations across North America, Europe and Asia, VinFast is positioned to become a major contributor to India's electric future.

Pham Sanh Chau, CEO of VinFast Asia, said, “Today marks a historic milestone – the launch of cars that are not just made in India, but made by Indians, for Indians. We are introducing a complete electric mobility ecosystem thoughtfully designed for Indian families. The VF 6 and VF 7 embody the perfect harmony of practical design, premium quality and cutting-edge technology that Indian consumers aspire to. Backed by our state-of-the-art Thoothukudi facility and strong ecosystem partnerships, we are committed to supporting India’s vision of becoming a global leader in electric mobility.”

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