EV Market In India At Inflection Point; Growth Imminent Across Categories

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.”

VIDA, the electric mobility brand powered by Hero MotoCorp, has launched a new variant in its product range, the VIDA Evooter VX2 Go FB (3.1 kWh) at an introductory price of INR 113,000 (ex-showroom New Delhi).

The model introduces direct-plug charging architecture to the lineup, complementing the brand's existing removable-battery electric two-wheelers.

The e-scooter features a 3.1 kWh fixed battery pack paired with a 6 kW swing-arm electric motor, achieving a top speed of 70kmph and an Indian Driving Cycle certified range of 128 kilometres. Direct current fast-charging capability recharges the battery from zero to 80 percent in 65 minutes. Additional specifications include 27.2 litres of under-seat storage capacity and a 4.3-inch liquid-crystal display featuring turn-by-turn navigation and smartphone connectivity functions.

With the addition of the 3.1 kWh fixed-battery model, the broader VIDA VX2 portfolio spans five configurations: the entry VX2 Go 2.2 kWh with a 93 km certified range, the VX2 Go FB 3.1 kWh with 128 km, the VX2 Go 3.4 kWh with 146 km, the VX2 Plus 3.4 kWh with 146 km and the flagship VX2 Plus 4.4 kWh with a certified range of 187 km.

Commercial availability across authorised dealerships in India is scheduled to begin in early August 2026. The deployment will be supported by the brand's charging infrastructure, which comprises over 5,900 fast-charging points and more than 700 service centres nationwide, alongside a Battery-as-a-Service subscription model.

American electric vehicle major Tesla has opened test drives for the 2026 Model Y Premium Rear-Wheel Drive across its experience centres in India, including locations in Mumbai, Delhi, Gurugram, Bengaluru and Hyderabad.

Alongside the vehicle rollout, the manufacturer has introduced artificial intelligence (AI) software features for its domestic vehicle fleet, integrating xAI's Grok voice assistant into the cabin interface.

The 2026 Model Y Premium Rear-Wheel Drive provides 2,138-litres of storage space and seating for five passengers. The vehicle accelerates from zero to 100 kmph in 5.9 seconds and holds an operational range rating of up to 500 km under WLTP testing standards.

In India, the variant is priced at INR 5.08 million, requiring a down payment of INR 600,000 and monthly instalment options starting at INR 39,990. Tesla is offering a Wall Connector charging unit for orders placed prior to 30 August 2026.

The deployment of Grok forms part of Tesla's Summer 2026 over-the-air (OTA) software release. The assistant operates via voice activation or steering wheel controls and supports multiple Indian languages, including Hindi, Marathi, Gujarati, Telugu, Tamil and Kannada. Software functionality includes multi-stop route planning, location queries for charging stations and amenities, vehicle status diagnostics and adaptive navigation based on driver usage patterns.

Globally, Tesla is expanding production of its 4680 battery cells to support assembly volumes for the Model Y platform. During the first half of 2026, the company increased its compute capacity at its Texas facilities to support autonomous software processing for vehicles and robotic systems.

German technology supplier Bosch has initiated passenger trials of its hydrogen fuel-cell power module in Madrid, partnering with Spanish bus manufacturer Irizar and transport operator Alsa. The trial involves an Irizar bus operating along public transit routes in the capital.

Buses operation focuses on routes where operational distance requirements favour fuel-cell powertrains over battery-electric alternatives.

The test bus utilises the Bosch FCPM C190 system, a fuel-cell module featuring a horizontal double-stack design that provides 190 kilowatts of continuous power output. Onboard hydrogen storage enables driving ranges exceeding 1,000 kilometres between refuelling stops, with tank replenishment taking between 10 and 15 minutes. This performance capability allows the vehicle to operate in intercity service as well as urban transit.

Alongside the C190 module, Bosch manufactures the 100-kilowatt FCPM C100 for city transit buses and the FCPM C300 for heavy-duty coaches and commercial freight vehicles. The trial follows EU regulations mandating a 90 percent reduction in carbon dioxide emissions from newly registered city transit buses by 2030 compared with 2019 levels. Equivalent reduction targets extend to all other bus categories starting in 2040.

According to data from the European Automobile Manufacturers’ Association (ACEA), over 38,000 new buses were registered across the European Union in 2025. Bosch continues to expand its technology portfolio across the hydrogen supply chain, including the production of its Hybrion proton exchange membrane (PEM) electrolysis stack for hydrogen generation, as well as port and direct injection components for hydrogen internal combustion engines.

Thomas Pauer, Member of the Bosch Mobility sector board and president of Bosch Power Solutions, said, “The fuel cell is the perfect complement to battery-electric powertrains – even in bus operations. Fuel cells are especially well-suited for buses that travel longer distances every day and rarely have the opportunity to charge en route. With this trial, we can clearly demonstrate that Bosch’s fuel-cell technology is ready for the demands of large-scale deployment in passenger transport.”

Ahmedabad-based electric two-wheeler brand Avore Electric launched its first electric motorcycle – the Avore Electric EX at prices starting at INR 124,999 (ex-showroom).

The e-motorcycle is available in three variants – the EX 2S, EX 2 and EX 1. The model range was developed over three years using the company's indigenous AVORE Source technology stack and AVR vehicle platform. The development process involved over 120 intellectual property filings across nine vehicle systems, including the battery management system, motor controller, onboard charger and operating system.

The EVs use a rare-earth-free Permanent Magnet Synchronous Motor (PMSM) with peak power output ranging between 7.5 kW and 10.5 kW depending on the variant, while all three models produce 250 Nm of peak wheel torque.

The EX 2S attains a claimed top speed of 114 kmph, whereas the EX 2 and EX 1 reach top speeds of 100 kmph. The powertrain utilises an integrated motor and swingarm structure to manage chassis balance and weight distribution.

The EX 2S and EX 2 carry IDC-certified range ratings of 260 km and 255 km respectively, while the EX 1 carries an IDC-certified range rating of 160 km. All variants include a 1500W onboard charger compatible with standard 5A and 15A domestic sockets, charging the battery from 20 per cent to 80 percent in two hours and reaching a full charge in a claimed four hours. The battery pack is homologated by NATRAX, and the battery management system is validated by ICAT.

Software systems integrated into the platform include the AVORE SENSE operating system, an artificial intelligence (AI) companion named Avore Synapse and an automatic manual gear mode. The platform complies with AIS 156 and AIS 038 safety standards and underwent 100,000 km of road testing alongside 2,500 hours of dynamometer testing prior to commercial introduction.

Priyank Rakholiya, Founder, Avore Electric, said, "We dedicated three years to research, development, testing, and validation before the launch of the EX so as to ensure class-leading engineering and innovation. We are ensuring global-levels of safety and performance, while pushing the frontiers of Indian-developed electric mobility technology stacks that deliver reliability, consistency, and economic viability. Our goal is to improve adoption and accessibility to world-class electric mobility solutions for every Indian and we are confident that the EX is just the start of our journey towards that direction."

Bookings for the EX series have opened on the manufacturer's website at an initial reservation amount of INR 799, with customer deliveries scheduled to begin in two months. The battery pack is supplied with a 5-year or 60,000 km warranty.