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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Bengaluru-based electric two-wheeler major Ather Energy has crossed the milestone of having over 400 Ather Grid fast charging points across Maharashtra.

With 64 Experience Centres and 42 Service Centres in Maharashtra, Ather Energy has cemented its position in over 37 cities in the state. Furthermore, to provide its customers access to fast charging, it’s Ather Grid network now extends to 35 cities across Maharashtra including Mumbai, Nashik, Pune and Nagpur. It has also strategically placed the fast chargers to connect significant routes such as Mumbai - Pune, Pune - Satara, Satara - Kolhapur, Sangali - Kolhapur and Pune - Panshet.

What’s interesting to note is that customers also have access to 220 fast charging points built on the LECCS (Light Electric Combined Charging System) standard, which has been developed by Ather and opened for industry-wide adoption.

LECCS allows different brands of light electric vehicles to use the same network. Ather Grid chargers are also visible on Google Maps, making it easy for any customer with a LECCS connector on their scooter to locate, navigate and charge, further enhancing the everyday ownership experience.

Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said, “Maharashtra has been a strong market for us, and we’ve seen EV adoption here grow steadily over the years. As more people switch to electric, what really builds confidence is knowing that charging won’t be a challenge. However, for many potential buyers, charging continues to be one of the perceived barriers, and that’s something we’ve always worked towards solving. From the beginning, we’ve focused on building infrastructure that keeps pace with growing demand. Crossing 400 fast chargers in the state is a reflection of that effort. It’s about giving riders the assurance that they’ll always find a charger when they need one. As we expand our retail presence, the charging network will continue to grow in tandem to make EV ownership truly seamless.”

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eBikeGo, an Acer Official Licensee and one of India’s electric mobility leader, has opened its first Acer Electric Vehicles retail outlet in New Delhi’s Okhla Industrial Area (Phase 2). This marks the beginning of a nationwide expansion, with 15 flagship stores planned to showcase Acer-branded e-vehicles.

The store offers a premium range of e-bicycles, e-scooters and e-bikes, blending global design with rugged Indian road adaptability. Targeting urban commuters and eco-friendly riders, the lineup includes e-cycles starting at an introductory price of INR 35,999, with e-scooters and e-bikes arriving soon.

Hari Kiran, Co-Founder & COO, eBikeGo, said, “We at eBikeGo are elated to announce our significant expansion in 15 cities across PAN-India, which has been made possible within only a few months, based on our strategic approach of setting up Acer Electric Vehicles retail outlets across various states. This rapid expansion underscores our commitment to eco-friendly transportation while positioning eBikeGo as a pivotal player in the Indian EV market and promoting a green and sustainable future for all Indians. It also enables us to put the spotlight on eBikeGo’s brand new e-2Ws products’ lineup, including our e-cycles, e-scooters and e-bikes.

“The overwhelming response we have received for eBikeGo’s store expansion and the feedback we have received for Acer brand serves as a testament to the strong brand appeal and speaks volumes about our credibility. With our wide portfolio of reliable EVs tuned to the Indian roads and consumer requirements yet boasting world-class standards, we shall continue to expand and grow our retail store network furthermore across the nation.”

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BYD, a global leader in new energy vehicles (NEVs), celebrated the production of its 13-millionth NEV on 21 July 2025 at the company's Xiaomo Production Base in Shenzhen-Shanwei. The milestone vehicle, a YANGWANG U7, underscores BYD’s industry dominance.

The company maintained strong growth in the first half of 2025, with domestic sales surpassing 2.113 million units (up 31.5 percent year-on-year) and overseas deliveries reaching 472,000 units (a 128.5 percent surge). This performance solidified BYD’s position as the world’s top-selling NEV automaker and the first to achieve 13 million NEV productions.

The achievement reflects global consumer trust in BYD’s technology and quality. The success of its premium YANGWANG brand highlights Chinese automakers’ rising influence in the high-end EV market, showcasing China’s competitive edge in the new energy era.

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Bike Bazaar, a non-banking finance company focussing on new and used two-wheelers, has announced that it has inked a strategic partnership with E-Sprinto, an electric two-wheeler company.

Under the strategic partnership, Bike Bazaar aims to deploy 10,000 electric scooters from E-Sprinto for last-mile delivery segment in India.

Atul Gupta, Director, E-Sprinto, said, “This collaboration with Bike Bazaar is a strategic leap towards transforming last-mile delivery in India. At E-Sprinto, we are committed to building not just electric vehicles, but ecosystems that empower riders with dependable technology, minimal downtime, and sustainable performance. Our scooters are engineered to serve the real needs of India’s delivery economy – high mileage, robust build quality and low maintenance. Bike Bazaar shares our vision of creating value beyond just mobility—this event proves their commitment to rider safety and long-term engagement. We are proud to be partnering with a company that prioritizes its customers so holistically.”

Satbir Singh, Business Head – EV & New Business Initiatives, Bike Bazaar, said, “At Bike Bazaar, our riders are not just customers – they are the heart of everything we do. Today’s event is not only a celebration of their continued trust but a reaffirmation of our responsibility toward their safety and livelihood. We believe safety is not an optional feature—it’s a fundamental culture that must be embedded in every touchpoint. Our partnership with E-Sprinto is a step in this direction—together, we aim to deliver smarter, safer, and more reliable EV solutions tailored to the evolving needs of the gig economy. This is more than a fleet expansion—it’s a shared mission to lead the charge in responsible electric mobility.”

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