The size of India’s electric vehicle (EV) market has reached 1.96 million units in terms of EV registrations — a 17 percent increase in the fiscal year 2024-25 (FY25) from the 1.68 million units recorded in the previous fiscal year.
Electric Two-Wheelers (e2W):
The electric two-wheeler segment led the EV market, registering 1.14 million units in FY25. This marks a 21.1 percent growth from the 948,561 units sold in the prior year. Notably, manufacturers have been expanding their portfolios to capture a larger share of this booming market.
Electric Three-Wheelers (e3W):
Electric three-wheelers also saw a positive trend, with registrations totaling 699,062 units in FY25 — a 10.4 percent increase compared to the previous fiscal year.
Electric Passenger Vehicles:
The electric passenger vehicle segment, encompassing electric cars and sport utility vehicles (SUVs), recorded steady growth. Registrations reached 106,000 units in FY25, up from 91,000 units in the prior year. Despite this progress, EV sales accounted for just 2.5 percent of total car sales of 4.3 million in 2024. The government aims to increase this to 30 percent by 2030.
The growth in EV sales occurred despite challenges, including a challenging first quarter following the expiration of FAME subsidies. Additionally, the overall automobile industry experienced a slowdown, with passenger vehicle dispatches to dealerships in India edging up by just 2.6 percent to 4.34 million units in FY25, weighed down by sluggish urban demand, a high base effect, and weak sales of hatchbacks and sedans.
Future Outlook:
Industry leaders anticipate a further acceleration in EV adoption in the coming years. Hyundai Motor India, for instance, expects a significant increase in electrification of the passenger vehicles market in 2025 and 2026, projecting EV penetration to reach 17 percent by 2030.