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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Hyundai Motor India, one of the leading passenger vehicle manufacturers, has announced a long-term strategic commitment to designate the state of Tamil Nadu as its designated ‘Flagship EV Hub for India’. The announcement includes an exclusive skill development partnership alongside manufacturing and supply chain localisation goals.

As part of this roadmap, Hyundai Motor India has reaffirmed its plan to deploy an investment of over INR 260 billion in Tamil Nadu between 2023 and 2032. This allocation is a component of the company's broader, previously declared INR 450 billion investment blueprint for the Indian market. To date, the Chennai facility has exported more than 3.9 million vehicles to over 150 countries.

The manufacturing hub will scale zero-emission capabilities via immediate product rollouts and component localisation:

• Product Rollout: Hyundai Motor India plans to introduce two new vehicle models from its Chennai facility within the year. This includes the launch of its first mass-market dedicated electric vehicle (EV) to accelerate local adoption.
• Industrial Localisation: The company has established Tamil Nadu’s first battery sub-assembly plant for EV powertrains. Hyundai Motor India is currently expanding local sourcing for power electronics and related primary components to minimise import dependency.
• Charging Network: Hyundai has deployed a direct-current (DC) fast EV charging ecosystem across the state consisting of 39 stations and 78 charging points. The high-capacity network is scheduled for further expansion across major urban centres and transit highways over the next 2 to 3 years.

The company has also aims to increase its localisation rate from the present 82 percent to 90 percent in the next 5-6 years. An additional INR 40 billion in state sourcing value from the current base, which is expected to generate an additional 2,000 jobs in the state.

Hyundai Motor India and the Government of Tamil Nadu (GoTN) have formalised a structured skill development project scheduled to commence active training operations in December 2027. The program aims to increase the global employability of the state's workforce by integrating next-generation manufacturing skills.

The curriculum will leverage partnerships with local Industrial Training Institutes (ITIs), polytechnics and engineering colleges to train students in advanced disciplines:

• EV technical architectures and hydrogen mobility systems.
• Industrial robotics, digital automation and AI-enabled manufacturing.
• Smart factory workflows alongside professional workplace communication and language instruction.

Tarun Garg, Managing Director & CEO, Hyundai Motor India, said, “HMIL’s initiatives will strengthen Tamil Nadu’s leadership in sustainable mobility and automotive excellence, while also accelerating skill development to foster a future-ready workforce. We will roll out two new models from the Chennai facility, including our first mass-market dedicated EV within this year, marking a significant step towards accelerating EV adoption and building a strong EV ecosystem. Alongside, advancing EV localization, we are equally focused on developing a future-ready skilled workforce, enabling talent to support future automotive technologies."

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Maruti Suzuki India, one of the largest passenger vehicle manufacturers globally, has officially launched India’s first flex-fuel passenger car on the eve of World Environment Day.

The technology is being introduced in the Maruti Suzuki Wagon R, a high-volume model that has previously served as a platform for the company's alternative fuel options, including Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG).

The vehicle was unveiled in New Delhi in the presence of Nitin Gadkari, Minister of Road Transport and Highways, and Hardeep Singh Puri, Minister of Petroleum and Natural Gas.

The flex-fuel Wagon R is engineered to provide complete fuelling flexibility, enabling consumers to operate the vehicle on any ethanol-to-petrol blend ratio ranging from E20 (20 percent ethanol) up to E100 (100 percent ethanol).

The introduction of ethanol flex-fuel tech represents a broader commitment by India's market leader to scale diversified powertrain architectures. Maruti Suzuki's long-term product strategy incorporates a multi-tiered technology approach to meet carbon reduction goals, including Battery Electric Vehicles (BEVs), Hybrids, CNG, Compressed Biogas (CBG) and now, flex-fuel configurations.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “The ecosystem for ethanol as a fuel in India is in its early stages, and as a market leader, we think it is our responsibility to contribute to make `India Go Flex’. Once it reaches mainstream adoption, Flex-Fuel Vehicles have the potential to cut oil imports, carbon emissions, and local air pollution while enhancing domestic value addition and farmer incomes.”

Nitin Gadkari noted, “Biofuels like ethanol are an important pathway towards reducing crude oil import dependence while strengthening our rural economy. Flex-Fuel Vehicles can create a strong and sustainable demand for ethanol, benefiting our farmers, industry, and the environment together. I appreciate Maruti Suzuki for taking this leadership step and supporting the Government’s vision of clean and self-reliant mobility.”

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Blue Energy Motors (BEM), a prominent manufacturer of electric vehicles (EVs) and liquefied natural gas (LNG) heavy-duty trucks, has attained a new milestone of crossing 100 million cumulative fleet green kilometres across India. The achievement highlights a growing shift within the country’s commercial logistics and freight transportation sectors toward lower-emission mobility alternatives.

The active fleet consists of more than 1,400 BEM heavy-duty trucks deployed across major nationwide freight routes. To date, this green trucking initiative has mitigated over 30,000 tonnes of carbon emissions, an environmental impact equivalent to the carbon absorption capacity of nearly 1.2 million trees.

To accelerate the transition away from traditional diesel reliance, Blue Energy Motors has established an integrated clean trucking ecosystem that combines alternative-fuel hardware with proprietary service models such as heavy-duty LNG trucks with up to 2,400km range on single fuel. For its electric truck line, Blue Energy Motors has deployed corridor-led charging networks and battery-swapping stations designed to eliminate range anxiety and charging-induced fleet downtime.

The proprietary swapping infrastructure allows a depleted truck battery to be mechanically replaced in under five minutes, optimising vehicle productivity for high-mileage commercial operations.

Blue Energy Motors utilises a structured EaaS business model to assist fleet operators by lowering upfront capital expenditure (CapEx) investments while enhancing day-to-day operating efficiencies and total fleet utilisation.

Anirudh Bhuwalka, Founder and Managing Director, Blue Energy Motors, said, “Crossing 100 million kilometres is a strong validation of where the future of freight mobility is headed. A few years ago, green-fuel trucking was still seen as an emerging idea. Today, fleet operators are actively looking at cleaner solutions that make sense not only from a sustainability perspective, but also operationally and commercially.”

“The recent volatility in global energy markets has highlighted a reality that freight operators can no longer ignore. Businesses that remain entirely dependent on diesel are becoming increasingly exposed to fuel-price shocks and supply uncertainties. Energy security, operating economics, and sustainability are no longer separate conversations. They are converging into a single business decision. We believe the next five years will witness one of the fastest transformations in the history of India’s trucking industry,” added Bhuwalka.

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Ahmedabad-based Samarth E-Mobility, a technology company, has announced the launch of its new electric mobility brand – Avore Electric. Debuting with the tagline ‘Intelligence Beyond Motion,’ the company said its product development philosophy focuses on engineering critical technology systems entirely in-house rather than assembling hardware from third-party suppliers.

Over a three-year development cycle, a team of more than 100 engineers at Samarth E-Mobility's dedicated R&D facility in Ahmedabad has developed over nine critical vehicle subsystems. This vertically integrated development framework is built on AVORE Source, the company's proprietary technology stack and the purpose-built AVR platform two-wheeler architecture.

The company's proprietary engineering portfolio includes a patented Battery Management System (BMS) and custom battery pack; the electric motor, motor controller and power control module. A DC-DC converter and an onboard fast charger. The digital display system and a proprietary vehicle operating system.

By controlling both hardware and software layers, the architecture enables over-the-air (OTA) software updates for continuous product improvements, faster system diagnostics and optimised performance. To protect its baseline engineering innovations, Samarth E-Mobility has filed more than 110 intellectual property applications to date.

Avore Electric’s upcoming range of electric motorcycles will target the 125cc–200cc segment, which represents one of the largest commuter and lifestyle demographics in the Indian two-wheeler market. The vehicles are being specifically engineered to withstand real-world Indian riding and environmental conditions, offering a practical, electric alternative for mainstream riders.

The brand's initial market-entry strategy will focus on component-level transparency, consumer education and product-led storytelling. While specific vehicle performance metrics and launch timelines have not yet been disclosed, product reveals and campaign rollouts are scheduled for the coming months.

Priyank Rakholiya, Co-Founder, Samarth E-Mobility, said, “For three years, we asked ourselves a simple question, why does India's most widely used personal vehicle incorporate so little intelligence. We realised the answer wasn't a missing feature, it was a missing commitment. True intelligence cannot be assembled from off-the-shelf components; it must be engineered from the ground up. That's why we built every critical system in-house. Engineering excellence in intelligence is not a claim for us; it's a methodology that shapes every decision we make.”

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