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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Bengaluru-based electric vehicle maker Ather Energy has reported its consolidated income of INR 12.6 billion for Q1 FY2027, which marks a 87.2 percent YoY increase.

In Q1, the company sold 83,173 electric two-wheelers, up 80.5 percent compared to same period last year. Non-vehicle operations, including software subscriptions, charging infrastructure, spare parts and service offerings, contributed 14 percent to operating revenue, up from 13 percent in Q1 FY26.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) turned positive at INR 90 million, compared to an EBITDA loss of Rs 1.06 billion in the same period last year. EBITDA margin improved by 1,650 basis points to 0.8 percent. Consolidated net loss narrowed to INR 510 million from INR 1.78 billion in Q1 FY26.

The consolidated results also include performance data for newly incorporated subsidiary Ather Insurance, which recorded a net loss of INR 22 million for the quarter. Adjusted gross margin stood at INR 2.82 billion, up 82.3 percent YoY. Higher input costs were recorded across raw materials including copper, aluminium, lithium and crude-linked supplies, which the company managed through pricing adjustments, product mix changes, and engineering cost reductions.

Ather Energy stated that market demand metrics indicated customer enquiries rising 95 percent YoY to 707,000, while pre-orders increased 158 percent to 150,000 units. Industry registration data from Vahan showed total electric two-wheeler registrations rising 68 percent YoY to approximately 525,000 units during the period, with electric vehicle penetration reaching 10 percent in June 2026.

Tarun Mehta, Co-Founder & CEO, Ather Energy, said, "We continued to see strong demand across our portfolio, as structural tailwinds from both policy support and shifting customer sentiment translated into a massive upsurge for our products, with demand far outstripping supply. This gives us confidence that the market continues to expand. In the coming months, we are particularly excited about our new product on the EL platform, commencing production alongside the scale-up of our new factory at AURIC. Together, they position us well for the next phase of Ather's growth.”

Manufacturing expansion remains on schedule at Factory 3.0 at AURIC in Chhatrapati Sambhaji Nagar. Phase 1, offering an annual capacity of 500,000 units, is scheduled to start production in Q3 FY27. Upon completion of Phase 1 and Phase 2, Ather's total installed manufacturing capacity across its facilities will reach 1.42 million units annually.

The company also plans to reveal its first production model on the EL vehicle architecture on 29 August 2026 during Ather Community Day.

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VIDA, the electric mobility brand powered by Hero MotoCorp, has launched a new variant in its product range, the VIDA Evooter VX2 Go FB (3.1 kWh) at an introductory price of INR 113,000 (ex-showroom New Delhi).

The model introduces direct-plug charging architecture to the lineup, complementing the brand's existing removable-battery electric two-wheelers.

The e-scooter features a 3.1 kWh fixed battery pack paired with a 6 kW swing-arm electric motor, achieving a top speed of 70kmph and an Indian Driving Cycle certified range of 128 kilometres. Direct current fast-charging capability recharges the battery from zero to 80 percent in 65 minutes. Additional specifications include 27.2 litres of under-seat storage capacity and a 4.3-inch liquid-crystal display featuring turn-by-turn navigation and smartphone connectivity functions.

With the addition of the 3.1 kWh fixed-battery model, the broader VIDA VX2 portfolio spans five configurations: the entry VX2 Go 2.2 kWh with a 93 km certified range, the VX2 Go FB 3.1 kWh with 128 km, the VX2 Go 3.4 kWh with 146 km, the VX2 Plus 3.4 kWh with 146 km and the flagship VX2 Plus 4.4 kWh with a certified range of 187 km.

Commercial availability across authorised dealerships in India is scheduled to begin in early August 2026. The deployment will be supported by the brand's charging infrastructure, which comprises over 5,900 fast-charging points and more than 700 service centres nationwide, alongside a Battery-as-a-Service subscription model.

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American electric vehicle major Tesla has opened test drives for the 2026 Model Y Premium Rear-Wheel Drive across its experience centres in India, including locations in Mumbai, Delhi, Gurugram, Bengaluru and Hyderabad.

Alongside the vehicle rollout, the manufacturer has introduced artificial intelligence (AI) software features for its domestic vehicle fleet, integrating xAI's Grok voice assistant into the cabin interface.

The 2026 Model Y Premium Rear-Wheel Drive provides 2,138-litres of storage space and seating for five passengers. The vehicle accelerates from zero to 100 kmph in 5.9 seconds and holds an operational range rating of up to 500 km under WLTP testing standards.

In India, the variant is priced at INR 5.08 million, requiring a down payment of INR 600,000 and monthly instalment options starting at INR 39,990. Tesla is offering a Wall Connector charging unit for orders placed prior to 30 August 2026.

The deployment of Grok forms part of Tesla's Summer 2026 over-the-air (OTA) software release. The assistant operates via voice activation or steering wheel controls and supports multiple Indian languages, including Hindi, Marathi, Gujarati, Telugu, Tamil and Kannada. Software functionality includes multi-stop route planning, location queries for charging stations and amenities, vehicle status diagnostics and adaptive navigation based on driver usage patterns.

Globally, Tesla is expanding production of its 4680 battery cells to support assembly volumes for the Model Y platform. During the first half of 2026, the company increased its compute capacity at its Texas facilities to support autonomous software processing for vehicles and robotic systems.

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German technology supplier Bosch has initiated passenger trials of its hydrogen fuel-cell power module in Madrid, partnering with Spanish bus manufacturer Irizar and transport operator Alsa. The trial involves an Irizar bus operating along public transit routes in the capital.

Buses operation focuses on routes where operational distance requirements favour fuel-cell powertrains over battery-electric alternatives.

The test bus utilises the Bosch FCPM C190 system, a fuel-cell module featuring a horizontal double-stack design that provides 190 kilowatts of continuous power output. Onboard hydrogen storage enables driving ranges exceeding 1,000 kilometres between refuelling stops, with tank replenishment taking between 10 and 15 minutes. This performance capability allows the vehicle to operate in intercity service as well as urban transit.

Alongside the C190 module, Bosch manufactures the 100-kilowatt FCPM C100 for city transit buses and the FCPM C300 for heavy-duty coaches and commercial freight vehicles. The trial follows EU regulations mandating a 90 percent reduction in carbon dioxide emissions from newly registered city transit buses by 2030 compared with 2019 levels. Equivalent reduction targets extend to all other bus categories starting in 2040.

According to data from the European Automobile Manufacturers’ Association (ACEA), over 38,000 new buses were registered across the European Union in 2025. Bosch continues to expand its technology portfolio across the hydrogen supply chain, including the production of its Hybrion proton exchange membrane (PEM) electrolysis stack for hydrogen generation, as well as port and direct injection components for hydrogen internal combustion engines.

Thomas Pauer, Member of the Bosch Mobility sector board and president of Bosch Power Solutions, said, “The fuel cell is the perfect complement to battery-electric powertrains – even in bus operations. Fuel cells are especially well-suited for buses that travel longer distances every day and rarely have the opportunity to charge en route. With this trial, we can clearly demonstrate that Bosch’s fuel-cell technology is ready for the demands of large-scale deployment in passenger transport.”

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