The adoption of electric vehicles (EV) in India is poised to see a boost in adoption numbers driven by a rapidly expanding charging network, growth in battery swapping models and government policies such as the PM e-drive.
The respective sector demonstrated strong momentum in 2024, with total sales reaching nearly 1.95 million units across segments. Industry experts see this growth trajectory continuing into 2025, supported by expanding charging infrastructure, battery swapping networks and favorable government policies.
Alluding to the performance of the sector in 2024 ICRA Corporate Ratings Senior Vice President Srikumar Krishnamurthy said, “Electric vehicles in India continued to gain traction in 2024 supported by factors like government incentives, changing consumer needs new product launches, technological advancements, etc. Nevertheless, the EV penetration levels remain modest, particularly in cars and trucks, though adoption in two-wheelers and three-wheelers and buses is better. The government’s policy measures remain supportive; the PM e-drive scheme is expected to aid faster EV adoption apart from the development of the EV manufacturing ecosystem. While the transition is gradual, the EV sector holds promise as a cornerstone for sustainable mobility, with significant growth potential in the coming years."
According to data from Vahan Dashboard 19,48,957 EVs were sold between January and December 2024. Electric two-wheelers dominated the market with sales translating to 1.2 million units followed by the three-wheeler segment that sold 6,94,466 units. 
Meanwhile, the electric car segment continued to show steady progress with 99,848 units sold while the electric-bus sales experienced substantial growth increasing by 39% in CY2024, reaching 3,834 units. 
Ola Electric dominated the two-wheeler segment with a 35.42 percent market share followed by TVS (19.49 percent), Bajaj (16.58 percent), Ather (11.08 percent) and Hero (3.78 percent).
In the three-wheeler passenger segment, Mahindra Last Mile Mobility led with approximately 10 percent market share, while Bajaj Auto demonstrated exceptional growth. The three-wheeler cargo segment saw Mahindra LMM maintaining leadership with about 11 percent market share, while Bajaj Auto showed impressive growth to capture 4.7 percent market share. 
In the electric car segment, Tata Motors maintained dominance with roughly 62 percent market share, followed by MG Motor India at 22 percent, Mahindra & Mahindra (7 percent), BYD (2.85 percent), and PCA (2.19 percent), while in the electric bus segment, Tata Motors retained its leadership position with all major players showing significant sales growth.
2025 Outlook
Alluding to the sectoral outlook for 2025, Altigreen Propulsion Labs Chief Executive Officer Amitabh Sharan noted, “The electric vehicle industry in India stands at a transformative crossroads in 2025, with the market projected to reach USD 235 billion by 2030 at a remarkable CAGR of 49 percent. The sector will witness remarkable growth (especially in commercial vehicles) in 2025, driven by a combination of TCO benefits, technological advancements for better quality vehicles and driveability, and changing consumer perception towards EVs. However, the road to widespread EV adoption will need to overcome significant challenges viz-a-viz innovative vehicle financing, urban charging infrastructure, consistency in policy and regulatory framework, supply-chain localisation (for price parity with ICE) and very importantly skill development through industry-academia partnerships.”
Revfin Founder Sameer Aggarwal said, “2024 has been a defining year for India’s automotive sector, marked by accelerated adoption of electric vehicles, advancements in sustainability, and the integration of innovative technologies. Building on this momentum, 2025 is expected to be a year for EV adoption. With an intensified focus on developing robust EV charging infrastructure and scaling up battery-swapping networks, transitioning to electric mobility will become more seamless for consumers. Coupled with innovative financing models and targeted efforts to reach underserved markets, the industry is set to overcome accessibility barriers and make sustainable mobility a reality for all. Collaboration between automakers, policymakers, and technology providers will ensure a cohesive ecosystem, enabling India to lead the way in sustainable and inclusive mobility solutions.”
Godawari Electric Motors Director Hyder Ali Khan noted, “As we look ahead to 2025, we are excited about the robust expansion of our Eblu product portfolio, catering to the evolving needs of our customers. Additionally, we have some promising public and private orders in the pipeline, which will further accelerate our growth trajectory. We remain committed to driving innovation and sustainability in the EV sector and look forward to continued collaboration with our stakeholders to shape a cleaner and greener future for mobility.”
Zypp Electric Chief Executive Officer Akash Gupta revealed plans for 2025 along with the sector outlook and stated, “Looking ahead to 2025, Zypp Electric is committed to deploying 200,000 electric vehicles across the country in the next 12-18 months and we will double down on innovation, fleet expansion and partnerships to meet growing demand. We will focus on bolstering EV charging infrastructure, enhancing intelligent fleet management, and contributing to India's net-zero goals. Together, we aim to revolutionise last-mile logistics and make green mobility the norm for businesses and communities alike.”
On the components front, Automotive Component Manufacturers Association Director General Vinnie Mehta averred, “The Indian auto component industry is poised for robust double-digit growth in FY25, driven by strategic efforts to reduce import dependence and bolster exports. The electric vehicle component segment is witnessing remarkable year-on-year growth, propelled by the surging demand for sustainable mobility solutions. Key drivers include advancements in electric powertrains and battery systems, supported by increased investments in localization, R&D, and progressive government policies. These developments underscore the industry’s commitment to innovation, self-reliance, and establishing India as a prominent global manufacturing hub."
As India furthers its journey towards carbon neutrality within the mobility sector, EV adoption is slated to accelerate even in the luxury car segment. According to a news report citing Federation of Automobile Dealers Associations, the luxury EV market grew by 6.7 percent in 2024 despite decline in sales. 
BMW witnessed the highest sales followed by Mercedes Benz India, Volvo, Audi and Porsche. 

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Chennai-based electric motorcycle start-up Raptee.HV has received strategic funding from the Technology Development Board (TDB), a government body under the Department of Science & Technology.

The company claims it is the first electric motorcycle manufacturer in India to receive this support, which will be used to develop its high-voltage technology further.

Raptee.HV specialises in adapting high-voltage technology from electric cars for use in two-wheelers. The company has spent over six years developing its own technology from the ground up, aiming to create electric motorcycles that offer car-level performance, reliability and charging convenience.

Dinesh Arjun, CEO and Co-Founder of Raptee.HV, said, “This support from the Technology Development Board is a strong endorsement of Raptee.HV’s mission to redefine performance electric mobility, from India, for the world. In the absence of an ecosystem for high-voltage motorcycle architecture, we built our own through uncompromising engineering. Earlier, we also received a grant from the Ministry of Heavy Industries through ARAI-AMTIF and now from TDB, both clear signals of the Government of India’s focus on supporting indigenous technological innovation. The trust placed in us by TDB and ARAI-AMTIF strengthens our resolve to push the boundaries of performance-driven motorcycle electrification in India.” 

By investing in Raptee.HV, the TDB is making its first-ever investment in the electric motorcycle sector. This places the startup in a select group of companies, including Tata Motors and Bharat Biotech, that have historically received TDB support for groundbreaking technological innovations.

With motorcycles making up a significant portion of India's two-wheeler market, Raptee.HV’s focus on performance-driven, high-voltage technology could play a key role in helping India achieve its 2030 target of 30 percent EV penetration in the two-wheeler segment.

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Celebrating a significant five-year milestone in the UK, Polestar recently hosted its largest customer event, the Polestar Festival, at Bicester Motion. The festival served as the dynamic backdrop for the UK premiere of the new Polestar 5, a four-door performance Grand Tourer that embodies the brand's forward-looking vision.

The event attracted around 1,000 guests to the company's headquarters for a weekend highlighting Polestar's remarkable growth, which has seen over 45,000 vehicles sold since its 2020 launch. In a striking display of community, 180 owner vehicles were meticulously arranged on the Bicester airfield to form a record-breaking, 170-metre-wide collage of the Polestar logo.

Attendees experienced the first UK showing of the Polestar 5, a model extensively developed by the brand’s British engineers and evolved from the pioneering Precept concept. The festival also featured an interactive partner zone with leading technology firms like Google, Bowers & Wilkins and Brembo showcasing their contributions.

Further highlights included the exclusive Arctic Circle collection of modified Polestar vehicles, available for virtual driving experiences, and the display of a Guinness World Record-holding Polestar 3 that achieved 581 miles (approximately 935 km) on a single charge. The agenda was packed with live driving demonstrations on and off the track, alongside insightful discussions with Polestar executives on critical topics such as sustainable innovation and automotive design.

Matt Galvin, Managing Director, Polestar UK, said, “It was incredible to see so many customers and friends of the brand on Saturday, and the reception to the new Polestar 5 has been astonishing. Polestar UK is growing fast and has a very exciting future ahead of it, and I would like to thank all our customers for being part of this success story.”

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Tata Motors, one of India’s largest commercial vehicle manufacturer, has further strengthened its electric small commercial vehicle offerings.

The company has announced that over 25,000 public charging stations are now installed and accessible to its e-SCV customers across more than 150 cities, including Delhi-NCR, Bengaluru, Mumbai, Chennai and Hyderabad.

The EV chargers are strategically located across key logistics hubs, empowering last-mile delivery operators with enhanced range confidence, operational efficiency and improved earnings.

Furthermore, Tata Motors has also inked MoU with 13 leading Charging Point Operators (CPOs) – A Plus Charge, Ampvolts, chargeMOD, Charge Zone, Electric Fuel, Envo The Sustainer, EV Spot Charge, Kazam, Nikol EV, Sonik Mobility, Thunderplus Solutions, Volttic and Zeon Electric – to install and operate 25,000 additional public chargers over the next 12 months.

Pinaki Haldar, Vice-President & Business Head – SCVPU, Tata Motors Commercial Vehicles, said, “Crossing the 25,000 public charging station mark is a pivotal milestone in our commitment to advancing electric cargo mobility and its enabling ecosystem. With over 10,000 Ace EVs already deployed and having collectively covered more than 6 crore km, we’re seeing growing confidence among customers and transporters in the benefits of using four-wheel electric commercial vehicles. Our recently introduced Ace Pro EV is also gaining traction with its advanced capabilities tailored to evolving customer needs in urban and semi-urban cargo applications.”

“While we continue to innovate and deliver reliable, high-performance e-cargo vehicles, we remain equally focused on expanding infrastructure access through strategic collaborations. This partnership with India’s leading Charging Point Operators underscores our dedication to building a robust support network and enabling profitable, zero-emission logistics for entrepreneurs and transporters across the country,” said Haldar.

At present, Tata Motors’ e-SCV lineup includes the Ace Pro EV, Ace EV and Ace EV 1000.

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In a significant move for sustainable aviation infrastructure, Eicher Trucks and Buses, a division of VE Commercial Vehicles, has supplied its first fleet of all-electric tarmac coaches to IndiGo airlines. The delivery of six Eicher Skyline Pro-E 12-metre buses inaugurates a strategic partnership centred on clean energy and operational efficiency, marking Eicher's inaugural entry into the aviation ground support equipment sector.

Deployed at Bengaluru’s Kempegowda International Airport, these zero-emission buses are engineered for the rigours of airport tarmac operations. With a mission to safely ferry passengers between the terminal and their aircraft in utmost comfort, the buses feature a high-capacity layout with seating for 17 passengers plus a driver, along with ample space for 52 standing occupants.

Its advanced lithium-iron phosphate battery and CCS2 fast-charging system are designed to sustain continuous operation. For a smooth and stable ride, the vehicle is equipped with full air suspension, power-assisted steering, and disc brakes on all axles. This initiative is a key part of IndiGo’s broader strategy to minimise the environmental impact of its operations.

Suresh Chettiar, Executive Vice President – Bus Division, VECV, said, "We are honoured to partner with IndiGo in their journey towards greener and sustainable ground operations at Kempegowda Airport – recognised for its striking aesthetics and sustainable practices. With a broad range of buses optimised for demanding applications and backed by connected 24X7 service, Eicher is already a familiar name for citizens, school children and factory staff in Bengaluru. With these tarmac coaches, Eicher stands committed to sustainably transporting the 42 million passengers that use this gateway to India’s Silicon Valley each year.”

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