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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EV charging and energy management company Kazam, in collaboration with the Alliance for an Energy Efficient Economy (AEEE), has unveiled a report emphasising residential charging infrastructure's role in India's net-zero journey. Titled ‘The Net-Zero Transition Starts at Home’, the document was released at the India Habitat Centre in New Delhi. The launch was attended by Amal Sinha from BSES, Sameer Pandita of the Bureau of Energy Efficiency (BEE), Irfan Ahmad from the Central Electricity Authority (CEA) and other energy regulators.

The findings draw from Kazam's dataset of over 80,000 residential charger installations, gathered through field surveys and consumer interviews across 5,000 pin codes, including high-adoption states like Assam, Rajasthan and Uttar Pradesh. The analysis examines how EV adoption is altering household electricity consumption patterns nationwide.

India's EV transition diverges from global markets, driven by light electric vehicles, with two-wheelers and three-wheelers comprising roughly 90 percent of 2025 sales. These vehicles are typically charged overnight at home, yet nearly half of potential buyers lack access to formal residential charging infrastructure.

The report identifies three primary obstacles to safe residential charging. Prolonged overnight cycles strain grids not designed for sustained loads, causing overheating, socket melting, voltage fluctuations and inadequate earthing. Structural challenges persist in urban areas, where 70 to 75 percent of residents live in apartments, facing issues like lack of dedicated parking and resistance from housing associations.

Kazam and AEEE convened a roundtable with government bodies, utilities and real estate firms, proposing a four-layer framework defining EV readiness across sanctioned load, metering, earthing, wiring and awareness. Kazam also launched an online quiz for buyers to assess home preparedness. The report notes that for India's growing gig workforce, home charging is vital, as public stations can triple or quadruple electricity costs.

Akshay Shekhar, Co-Founder & CEO, Kazam, said, “Creating safe and EV-ready homes will be critical to sustaining long-term confidence in electric mobility and ensuring the benefits of EV transition are available to all. EV-readiness must become a core component of how residential projects are planned, approved and built, not as an afterthought. From affordable housing to redevelopment projects, charging infrastructure should be embedded into building approvals and occupancy certificates as a fundamental requirement. At the same time, schemes such as PM E-DRIVE and state EV policies can play a critical role in supporting residential electrical retrofits, particularly for low-income households and rental-heavy communities where dependence on electric two- and three-wheelers is the highest.”

Sumedh Agarwal, Director, Smart and Resilient Power and Mobility, Alliance for an Energy Efficient Economy (AEEE), said, “India has made significant progress on EV adoption being increasingly driven by people who use their vehicles to earn a living, but our residential infrastructure remains unprepared for the transition at scale. Charging access at home directly shapes the economics of vehicle ownership, particularly for delivery partners, commercial drivers and small entrepreneurs who depend on their vehicles for daily earnings. EV-readiness must now be built into our buildings, electricity networks and urban planning frameworks. The next phase of India's EV transition will be won or lost in our residences, and it must be safe, inclusive and capable of delivering long-term economic and environmental benefits at scale."

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Drivn, an EV leasing platform for commercial fleets, has formed a partnership with BillionE Mobility to lease and deploy 200 electric trucks. This collaboration aims to advance freight operations in India through fleet deployment, route electrification and charging infrastructure.

The first phase involves the deployment of 22 trucks for a cement industry customer under a long-term contract. This initiative establishes an electrified freight corridor. The partners project that this deployment will reduce CO2 emissions by 4,500 tonnes annually compared to internal combustion engine (ICE) trucks.

Alpna Jain, Co-Founder and Chief Business Officer, Drivn, said, "Electric trucks scale only when the right ecosystem is in place. Reliable charging infrastructure, alignment across partners, and disciplined on-ground execution are all critical to making large-scale deployments successful. Through our partnership with BillionE Mobility, we are focused on ensuring high vehicle uptime, operational consistency, and efficiency across every trip. This deployment demonstrates that EV freight is not just about replacing diesel trucks, but about building a logistics model that delivers both environmental and operational benefits."

Kartikey Hariyani, Founder, BillionE Mobility and Sanjeev Kulkarni, CEO, BillionE Mobility, added, “At BillionE Mobility, we’re not just imagining the future of mobility – we’re building it. Electrifying India's freight sector is a collaborative effort. By partnering with Drivn, we are combining technology, operations, and financing to remove key barriers to EV adoption. Together, we look forward to helping customers transition to cleaner, more efficient logistics.”

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Tata Power and Tata Passenger Electric Mobility (TPEM) have inaugurated a TATA.ev MegaCharger Hub at the iLabs Centre in Hitech City, Hyderabad, which marks the first-of-its-kind in Telangana.

The hub is designed to support the growing number of electric vehicles in the city, including private cars, commercial fleets and ride-hailing services. Key features include a total of 360 kW charging capacity. It has three 120 kW dispensers capable of charging six vehicles simultaneously, which is accessible 24 hours a day.

This hub is part of the TATA.ev MegaCharger network, which comprises over 750 charging points across India. Users can manage charging sessions via the Tata Power EZ Charge App.

Tata Power currently operates a network of over 6,500 public charging points across more than 700 cities and towns. The company has also installed over 230,000 home chargers in collaboration with various automotive manufacturers.

The inauguration event was attended by Jayesh Ranjan, Special Chief Secretary to the Government of Telangana and Gopalakrishnan VC, Director of the Automotive and EV Sector for the Government of Karnataka, alongside representatives from Tata Power and Tata Motors.

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Hindustan Zinc has deployed a 250 Metric Tonne capacity electric crane at its Zinc Smelter in Debari, Rajasthan. The hybrid machine operates on diesel and electricity and is part of a strategy to reduce emissions across the company's industrial infrastructure.

The crane replaces a diesel-operated model that consumed 93,600 litres of fuel per year. The company expects this transition to avoid approximately 250.8 tonnes of CO2 in annual emissions.

Arun Misra, CEO, Hindustan Zinc, said, “At Hindustan Zinc, sustainability is deeply embedded in how we operate, innovate and grow. The deployment of India’s first 250 MT electric crane is another example of our resolve to adopt clean technology and redefine how core industry transitions to low-carbon solutions. This initiative reflects our efforts to foster a culture of sustainability while laying the foundation for a greener and more resilient industrial ecosystem.”

The deployment follows a series of green initiatives introduced by Hindustan Zinc, which include deploying underground battery electric vehicles (BEVs), inducting a fleet of 250 LNG trucks for concentrate transport, use of 40 electric bulkers & electric passenger buses and launch of four electric loaders at the Rampura Agucha Mine.

Deepak Garg, Managing Director, SANY India, said, “Hindustan Zinc has consistently demonstrated industry leadership in adopting technologies that redefine sustainable mining. At Sany, we are honoured to partner with the company in deploying India’s first 250-tonne diesel-electric hybrid all-terrain crane, a solution designed to improve energy efficiency, reduce emissions and support more responsible industrial operations. This milestone reflects our shared commitment to advancing innovation that delivers both operational excellence and meaningful environmental impact.”

Hindustan Zinc aims to reach net-zero emissions by 2050. The company has increased renewable energy in its power mix to 18 percent and is targeting a 50 percent reduction in Scope 1 and 2 emissions from its 2020 baseline.

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