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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Swedish electric performance car brand Polestar is significantly enhancing the public charging experience for its European drivers through a series of integrated services. Central to this effort is the Polestar Charge app, which now provides streamlined access to an extensive network of more than one million charging points, positioning it as one of the continent's most comprehensive systems. A key feature simplifying this process is Plug & Charge technology, which automates authentication and payment when connecting to compatible stations, offering a seamless experience at nearly a thousand locations in the UK alone.

Further expanding convenience, Polestar has become an early adopter in fully incorporating Tesla Superchargers directly into its own app and vehicle systems. This integration allows drivers to locate, access and utilise over 20,000 Superchargers across Europe without needing separate applications. Real-time availability for these stations is displayed within the car’s native Google Maps navigation, aiding in efficient route and charging stop planning.

The network itself combines major cross-border operators like IONITY, Fastned and Total with regional providers, ensuring wide coverage. For users seeking added value, a subscription option offers reduced rates at more than 80,000 fast-charging points from dozens of operators. The service's popularity is reflected in its rapidly growing user base, which saw a 30 percent rise to over 45,000 users by 2025. Together, these developments create a cohesive and user-focused charging ecosystem for Polestar owners.

Olivier Loedel, Head – Product Software Management, Polestar, said, “With Polestar Charge, we give our customers access to one of the biggest charging networks in Europe. By expanding Plug & Charge and fully integrating Tesla Superchargers, we’re improving our premium seamless charging experience even further. Our strong charging offer, integrated with the in-car navigation in Google Maps, sets us apart from many competitors.”

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BYD, the world’s leading New Energy Vehicle (NEV) maker, has become the Official Car Partner of the Glasgow 2026 Commonwealth Games. The event, running from 23 July to 2 August 2026, will see 3,000 athletes from 74 nations compete across 10 sports and six Para sports at four venues in the city. For the occasion, BYD will supply a fleet of 90 vehicles to facilitate operations and transport athletes and personnel along the vast competition corridor.

The partnership was announced with the participation of BYD UK's Deputy Country Manager Steve Beattie and Glasgow 2026's Chief Operating Officer Jade Gallagher. They were joined by local swimmer Katie Shanahan, who is set to compete for Team Scotland. BYD will also serve as an Official Partner for the Scottish host nation team, supporting home athletes like Shanahan as they pursue medals.

This collaboration underscores BYD's significant role in the UK's shift towards electric mobility. The company's international prominence is reflected in its domestic sales, having captured a 12.01 percent market share of the fully electric and plug-in hybrid vehicle market through 2025, establishing it as the country's top New Energy Vehicle manufacturer.

Steve Beattie, Deputy Country Manager, BYD UK, said, “BYD is hugely proud to become the Official Car Partner of the Glasgow 2026 Commonwealth Games. With the city’s organisers creating a highly sustainable model for running the Games, I believe BYD’s technology-led approach to reducing emissions makes this agreement the perfect fit for both sides.”

Jade Gallagher, Chief Operating Officer, Glasgow 2026, said, “One of our biggest ambitions for Glasgow 2026 is to be the most environmentally sustainable Commonwealth Games, setting new standards for best practice by using existing venues, reducing waste and carbon emissions. We can’t achieve that without a partner like BYD who have a global reputation for their innovation in new energy vehicles.”

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Marking a significant step in its electrification strategy, Subaru Corporation has initiated domestic production of Battery Electric Vehicles at its Gunma Yajima Plant. This launch coincides with the finalisation of extensive upgrades to the plant’s production systems, a project commenced in August 2025. Central to these enhancements is a new, flexible assembly line engineered to manufacture the all-new E-Outback alongside traditional petrol and hybrid models within a single, integrated process. This approach leverages Subaru's established expertise in mixed-model production, allowing the company to adapt efficiently to the evolving automotive landscape.

The E-Outback itself represents a key milestone as Subaru's second global BEV, developed through a longstanding alliance with Toyota Motor Corporation. This partnership, celebrating its twentieth anniversary in 2025, has grown to encompass collaborative efforts in development, production and supply chain management. The recent manufacturing advancements are a direct result of deepened cooperation in electrification technologies, combined with continuous refinement of Subaru’s own manufacturing, or monozukuri, capabilities.

Looking forward, Subaru intends to further increase manufacturing flexibility. This focus aims to achieve greater production efficiency and development agility, thereby strengthening the company's ability to respond to market shifts and bolster its overall competitiveness. The Subaru E-Outback is scheduled for introduction in the United Kingdom during Summer 2026, with full specifications to be disclosed nearer the launch date.

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VinFast’s strategic progress in India has been further validated through recent accolades from the influential Vikatan Group media network. The company was distinguished with two significant awards: one recognising its substantial investment commitment, and the other honouring its VF 7 model as the premier urban electric vehicle for 2026. These commendations underscore the brand’s deepening integration into the Indian automotive sector, highlighting both its industrial strategy and its product relevance.

The title of Investor of the Year, conferred by Nanayam Vikatan business magazine, specifically acknowledges VinFast’s landmark commitment to establishing an electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu. This project is noted not only for its scale and strategic clarity but also for its anticipated role in fostering a new industrial corridor, generating employment and bolstering the local supplier network. It aligns with national initiatives like Make in India and reflects confidence in the region’s manufacturing potential.

Concurrently, the VF 7 electric SUV was named Urban Electric Vehicle of the Year at the Motor Vikatan Awards 2026. This recognition from automotive experts underscores the model’s successful adaptation to India’s urban driving conditions, balancing design, performance, safety and comfort. It serves as a testament to VinFast’s product development focus and its localisation strategy aimed at meeting specific market demands.

As a respected media institution in South India with a legacy dating to 1926, the Vikatan Group’s awards carry considerable weight among businesses and consumers. These latest honours add to a growing list of VinFast’s achievements in the market, illustrating the convergence of its investment, manufacturing, and product efforts. Within a short timeframe, the company has employed a long-term strategy encompassing manufacturing, retail, charging infrastructure and after-sales services. Through this comprehensive approach and a focus on sustainable innovation, VinFast is steadily building its brand presence while contributing to India’s transition towards green mobility.

Pham Sanh Chau, CEO, VinFast Asia, said, “Being recognised in two important award categories demonstrates how VinFast is steadily building its position in India, not only through long term investment commitments but also through products developed to match local conditions and user needs. This recognition provides further momentum for us to accelerate implementation, expand the electric vehicle ecosystem, and maintain a long-term partnership with the Indian market.”

B Srinivasan, CEO, Vikatan Group, said, “VinFast India represents the new-age investor – bold in vision, swift in execution and deeply aligned with India’s growth story. By unravelling the true potential of the port city of Thoothukudi, VinFast India has helped create a conducive industrial ecosystem, played a positive role in employment generation and restored the city’s importance on India’s manufacturing map. Their investment is not just capital at work but confidence in India’s future.”

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