Electric Vehicle Industry - Presentation

As of August 2025, electric car sales surged to 17,298 units, marking a 155% YoY increase from 6,787 units in August 2024, while total EV sales in June 2025 reached 1,80,238 units, driven by strong demand for electric passenger vehicles (E-PVs), two-wheelers, three-wheelers, and commercial vehicles. E-PV sales nearly doubled to 13,178 units in June 2025, up 79.95% from a year earlier, with their share in total EV sales rising to 4.4% from 2.5%. Electric two-wheeler sales grew 31.69% YoY to 1,05,355 units, capturing 7.3% of the two-wheeler market, while electric three-wheelers dominated the segment with 60,559 units sold, up 15.79%, accounting for 60.2% of EV sales. The electric commercial vehicle category, though smaller, posted the highest YoY growth at 122.5%. Electric passenger vehicle sales surged 75% YoY in Q1 FY26, reaching 35,000 units, with market penetration rising to 3.5% from 2% a year earlier; Kerala led at 7.9%, followed by Delhi, Karnataka, Maharashtra, and Tamil Nadu. Overall automotive retail sales in June 2025 crossed two million units, a 5% increase over June 2024, while total automotive sales in Q1 FY26 were around 6.57 million units, with EVs making up 549,736 units or 8.36% of the total. The EV sector remains dominated by two- and three-wheelers, comprising roughly 91.41% of total EV sales.

India’s EV charging network has expanded rapidly, with over 29,277 public charging stations as of July 2025, up from 25,202 in December 2024 and 11,903 in December 2023, reflecting a strong 72% CAGR since FY22. Karnataka leads with 6,097 public charging stations, supported by early policy adoption and fleet electrification. TATA.ev launched ‘Open Collaboration 2.0’ to enhance the charging ecosystem, targeting 400,000 chargers in two years, including 30,000 new public chargers and mega chargers. Hyundai Motor India is expanding its ultra-fast charging network with 11 new stations in major cities and highways. Government initiatives like the PM E-DRIVE scheme, with a budget of Rs. 10,900 crore (US$ 1.30 billion), and Rs. 2,000 crore (US$ 227.20 million) specifically for public charging stations, are accelerating EV adoption and infrastructure growth.

The government continues to incentivize the sector through programs such as the FAME India Scheme (Phase II), launched April 1, 2019, with total budgetary support of Rs. 10,000 crore (US$ 1.43 billion), aimed at electrifying public and shared transport, including 7,090 e-buses, 5 lakh e-3 wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 wheelers, with 30% procurement from SMEs. Additionally, the PM-eBus Sewa Scheme, launched August 16, 2023, with Rs. 20,000 crore (US$ 2.28 billion) has sanctioned 7,293 e-buses across 14 states and 4 union territories by July 2025.

India’s EV market is witnessing robust growth, with the country selling 19.7 million EVs in FY25, up 16.9% from FY24, supported by government subsidies, financing schemes, and infrastructure development. EV sales penetration is projected to exceed 7% by FY28, while battery-powered passenger vehicle production rose 140.2% YoY, aligning with the target of a 30% EV market share by FY30. The country aims for 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers to be electric by 2030, representing 80 million EVs on the roads and complete domestic production under ‘Make in India’.

India’s EV and mobility industry is projected to exceed Rs. 51,92,400 crore (US$ 600 billion) by 2030, with two-wheeler EVs reaching 35-40% penetration and four-wheelers 15-17%. Global EV market value was US$ 755 billion in 2024 and is forecast to reach US$ 4,360 billion by 2033 at a CAGR of 21.5%. The Indian EV market was valued at US$ 2.36 billion in 2024 and is expected to grow to US$ 164.42 billion by 2033, while India’s EV battery market is projected to expand from US$ 2.22 billion to US$ 13.89 billion over the same period. The domestic luxury EV segment also rose 66% YoY in the first five months of 2025.

Investment and industrial activity are accelerating, with Tamil Nadu set to receive around Rs. 50,000 crore (US$ 5.84 billion) in EV investments by 2025, generating 150,000 jobs. Tata Motors, JSW Group, Mahindra & Mahindra, and VinFast are establishing manufacturing facilities, including Tata’s Ranipet plant (US$ 1.08 billion), JSW’s joint venture with SAIC Motor, Mahindra’s planned facility in Kerala, and VinFast’s first overseas plant in Thoothukudi (Rs. 16,000 crore / US$ 1.83 billion). DPIIT signed an MoU with Ather Energy on July 29, 2025, to support EV startups in battery technology, vehicle manufacturing, and clean energy. Bharat Mobility Global Expo 2025, launched by Union Minister Piyush Goyal, outlined India’s vision to achieve Rs. 8,65,000 crore (US$ 100 billion) in EV exports.

The government has strengthened the sector through PLI schemes for automobiles and auto components (Rs. 3,500 crore / US$ 409 million in FY25), alongside cumulative FDI of Rs. 2,59,753 crore (US$ 39.15 billion) between April 2000-June 2025. Hydrogen fuel cell trucks are also being developed to decarbonize freight transport, with foundational work underway. Overall, India is poised to become the largest EV market by 2030, attracting over US$ 266 billion in investments, supported by favourable policies, infrastructure expansion, and strong industrial engagement.

India’s electric mobility sector is entering a transformative decade, driven by accelerating adoption, robust policy support, and expanding infrastructure. With sustained growth across vehicle categories and strong private-public collaboration, the nation is well on track to achieve its 2030 vision of large-scale electrification and domestic manufacturing. As investments, innovation, and exports gather momentum, India is poised to emerge as a global leader in sustainable mobility, redefining the future of clean transportation and green industrial growth.

References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press Releases, Department for Promotion of Industry, and Internal Trade (DPIIT), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 2025-26, EY Parthenon Electrifying Indian Mobility.

Note: Conversion rate used in July 2025, Rs. 1 = US$ 0.012