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.”

Tata Power and Tata Passenger Electric Mobility (TPEM) have inaugurated a TATA.ev MegaCharger Hub at the iLabs Centre in Hitech City, Hyderabad, which marks the first-of-its-kind in Telangana.

The hub is designed to support the growing number of electric vehicles in the city, including private cars, commercial fleets and ride-hailing services. Key features include a total of 360 kW charging capacity. It has three 120 kW dispensers capable of charging six vehicles simultaneously, which is accessible 24 hours a day.

This hub is part of the TATA.ev MegaCharger network, which comprises over 750 charging points across India. Users can manage charging sessions via the Tata Power EZ Charge App.

Tata Power currently operates a network of over 6,500 public charging points across more than 700 cities and towns. The company has also installed over 230,000 home chargers in collaboration with various automotive manufacturers.

The inauguration event was attended by Jayesh Ranjan, Special Chief Secretary to the Government of Telangana and Gopalakrishnan VC, Director of the Automotive and EV Sector for the Government of Karnataka, alongside representatives from Tata Power and Tata Motors.

Hindustan Zinc has deployed a 250 Metric Tonne capacity electric crane at its Zinc Smelter in Debari, Rajasthan. The hybrid machine operates on diesel and electricity and is part of a strategy to reduce emissions across the company's industrial infrastructure.

The crane replaces a diesel-operated model that consumed 93,600 litres of fuel per year. The company expects this transition to avoid approximately 250.8 tonnes of CO2 in annual emissions.

Arun Misra, CEO, Hindustan Zinc, said, “At Hindustan Zinc, sustainability is deeply embedded in how we operate, innovate and grow. The deployment of India’s first 250 MT electric crane is another example of our resolve to adopt clean technology and redefine how core industry transitions to low-carbon solutions. This initiative reflects our efforts to foster a culture of sustainability while laying the foundation for a greener and more resilient industrial ecosystem.”

The deployment follows a series of green initiatives introduced by Hindustan Zinc, which include deploying underground battery electric vehicles (BEVs), inducting a fleet of 250 LNG trucks for concentrate transport, use of 40 electric bulkers & electric passenger buses and launch of four electric loaders at the Rampura Agucha Mine.

Deepak Garg, Managing Director, SANY India, said, “Hindustan Zinc has consistently demonstrated industry leadership in adopting technologies that redefine sustainable mining. At Sany, we are honoured to partner with the company in deploying India’s first 250-tonne diesel-electric hybrid all-terrain crane, a solution designed to improve energy efficiency, reduce emissions and support more responsible industrial operations. This milestone reflects our shared commitment to advancing innovation that delivers both operational excellence and meaningful environmental impact.”

Hindustan Zinc aims to reach net-zero emissions by 2050. The company has increased renewable energy in its power mix to 18 percent and is targeting a 50 percent reduction in Scope 1 and 2 emissions from its 2020 baseline.

American electric vehicle start-up Slate has announced that its base truck model will be priced at USD 24,950, with deliveries expected to begin in Q4 of CY2026.

The platform allows owners to configure the vehicle as a pickup or an SUV, with options for the Squareback and Fastback models starting at USD 29,950. The EV features a modular design with a reported range of 205 miles (329km). The towing capacity is rated at 2,000 lb (907 kg), with a payload capacity of 1,550 lb (703 kg).

The EV design includes tactile controls and lacks a touchscreen. Owners can personalise their vehicles using over 200 accessories available through the Slate Marketplace.

Slate has engineered the modular EV to facilitate maintenance by the owner, with support provided via the Slate U guide. The vehicle includes a 10-year/110,000-mile (177,027 km) battery and powertrain warranty. Repair services are available through a network of 3,000 RepairPal shops and service centres.

Peter Faricy, CEO, Slate, said, “More than 180,000 reservation holders have told us they’re ready for a vehicle that’s affordable, reliable and built around their lives. Slate gives customers the freedom to buy only what they need today and personalise their vehicle as their needs change tomorrow. We’re excited to start seeing Slates on roads across America later this year.”

Established in 2022, Slate assembles its vehicles in Warsaw, Indiana. The company plans to invest USD 400 million in its factory, with projections to create 2,000 jobs. Customers can preorder the vehicle on the company website for USD 300. The company uses a direct-to-consumer sales model.

Delhivery and Bajaj Auto have signed an agreement to deploy electric three-wheelers across Delhivery's last-mile delivery network. The partnership begins with the deployment of 200 Bajaj RIKI eCarts (model C4005) in the first phase, with a second phase planned for 2026–2027 that aims to reach a total of approximately 1,500 electric vehicles.

The initiative aims to improve operational efficiency in both metropolitan areas and Tier-2 and Tier-3 cities. The Bajaj RIKI eCart (C4005) offers a claimed range of over 100 km per charge. The vehicle features an electric powertrain and a two-speed automatic transmission. Delhivery plans to pair the vehicles with its automated route optimisation software to increase drop-offs per trip and reduce operating costs per kilometre. The EVs are designed with ergonomic seating to protect riders from weather conditions and reduce physical fatigue.

Prashant Gazipur, Chief Operating Officer, In-City Operations at Delhivery, said, "Our collaboration with Bajaj Auto addresses the economic well-being of our delivery partners while advancing both our environmental goals and those of our clients. By combining our intelligent routing systems with highly efficient cargo EVs, we are creating a more profitable model for our riders and offering our clients a cleaner, lower-carbon supply chain."

Samardeep Subandh, President, Intra-City Business, Bajaj Auto, added, "This partnership with Delhivery has the potential of transforming last-mile cargo transport, with Delhivery’s scale and technology and Bajaj Auto’s expertise in 3-wheeler electric mobility. The Bajaj Riki C4005 offers 100+ kms of range on a single charge, excellent reliability and durability along with better comfort and ergonomics for drivers."

The deployment is part of Delhivery’s broader strategy to reduce its Scope 3 greenhouse gas emissions and meet its environmental, social and governance (ESG) targets.