Electric Vehicle Industry - Presentation

As of Q3 FY26, India’s EV sales reached 6,89,050 units, representing 7.29% penetration of total automotive sales with 2W and 3W making up nearly 87% of EV volumes, EV penetration rising across 2W, 3W passenger and 4W segments QoQ. India's electric vehicle (EV) sales continued to rise in FY25, reaching 2.05 million units, up from 1.68 million in FY24. While the total number of units sold increased, the YoY growth slowed to 22% in FY25, compared to a sharper 42.37% jump in FY24. In December 2025, E3W sales surged to 88,272 units, 48.58% jump from 59,412 units a year ago and a 5.51% MoM growth. The overall electric buses saw dispatches of over 5000 units in 2025.

India’s EV charging network has expanded rapidly, As of December 2025, India’s EV charging network has expanded rapidly, growing rapidly from FY22 to Q3 FY25. Public charging stations reached 29,151 by Q3 FY25, marking a strong 78% CAGR. Karnataka leads with 6,096 public charging stations, supported by early policy adoption and fleet electrification. The Indian government launched ambitious plans to add approximately 72,000 new EV chargers by FY26, including around 22,100 fast chargers for cars, reflecting strong policy support for infrastructure development. 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 (FAME-II) operated from 1 April 2019 to 31 March 2024, with a total outlay of Rs. 11,500 crore (US$ 1.30 billion). During this period, the scheme supported the sale of 1,671,606 electric vehicles. Additionally, 5,195 e-buses had been deployed by 31 January 2026. As of 1 January 2026, a total of 9,159 EV public charging stations had been installed under FAME-II. The Ministry of Housing and Urban Affairs launched the PM-eBus Sewa Scheme on August 16, 2023, with a Rs. 20,000 crore (US$ 2.28 billion) support to deploy 10,000 electric buses through the PPP model. By August 2025, 7,293 e-buses had been sanctioned across 14 states and 4 union territories.

India’s EV market is witnessing robust growth, with the country selling 2.05 million EVs in FY25, up 22% 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 to approximately 3,01,400 units, 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$ 917.30 billion in 2025 and is forecast to reach US$ 4,886.20 billion by 2034 at a CAGR of 20.43%. The Indian EV market was valued at US$ 3.71 billion in 2025 and is expected to grow to US$ 191.04 billion by 2034, while India’s EV battery market is projected to expand from US$ 2.71 billion to US$ 15.90 billion over the same period. Sales of luxury electric vehicles (EVs) in India rose by 84% YoY to 10,656 units in 2025, up from 5,780 units in 2024, as per data from the VAHAN portal of the Ministry of Road Transport and Highways.

India's electric vehicle (EV) sector garnered approximately Rs. 2.23 lakh crore (US$ 25.6 billion) in investments between 2020 and 2025, representing 18% of the projected total investment required by 2030. Investments in public charging infrastructure over the same period constituted around 9.6% of the Rs. 20,600 crore (US$ 2.36 billion) estimated to be needed by 2030. 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. Ola Electric is developing its proprietary cell manufacturing capabilities (Bharat Cell) to better manage costs and supply. The company aims to achieve a 5 GWh capacity by the end of FY2026, with its current operational capacity standing at 1.4 GWh. Panasonic, in partnership with IndianOil and an Indo-Japanese consortium comprising Patton and Toshiba, is planning EV battery manufacturing facilities. Tesla is reportedly evaluating the establishment of a pilot cell production line. 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. Under the SPMEPCI scheme, automakers will be allowed to import up to 8,000 electric vehicles into India at a reduced duty rate of 15%, as opposed to the prevailing 70-100% rates, on condition that they commit to investing Rs. 4,150 crore (US$ 500 million) in the domestic EV manufacturing sector. Under the PM e-Bus Sewa Payment Security Mechanism (PSM) Scheme, Rs. 3,435.33 crore (US$ 412 million) will support the deployment of over 38,000 electric buses across the country. Hydrogen fuel cell trucks are also being developed to decarbonize freight transport, with foundational work underway. In September 2025, Union Minister Mr. Nitin Gadkari inaugurated India’s inaugural Hydrogen Highway, a pivotal initiative to advance green hydrogen adoption and integrate clean energy into long-distance freight transport. The project includes establishing hydrogen fueling stations along key national highway corridors. 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 2026-27, EY Parthenon Electrifying Indian Mobility.