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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Renault Group has entered into a binding agreement to assume complete control of Flexis SAS, the electric van joint venture it originally co-founded with Volvo Group and CMA CGM Group in 2024. The deal, which is contingent upon clearance from antitrust authorities, will see Renault acquire the 45 percent and 10 percent stakes currently held by Volvo Group and CMA CGM Group, respectively. This transaction is anticipated to be finalised by the middle of 2026.

The restructuring of ownership is not expected to alter the core mission or the strategic direction of the project. The venture remains dedicated to the creation of a new generation of fully electric light commercial vehicles, incorporating advanced technological features. The development timeline remains on track, with production slated to commence by the end of 2026. The initiative is built upon a robust technological foundation, including a unique skateboard platform, 800-volt motor technology and a software-defined vehicle architecture. These innovations are specifically designed to meet the evolving demands of urban logistics and support the urgent need for decarbonisation in the sector.

Renault’s teams are fully committed to advancing this ambitious undertaking. The project is a significant employer in France, engaging nearly 1,300 personnel across several key locations. These include engineering hubs in the Île-de-France region, such as the Guyancourt Technocentre and the Villiers-Saint-Frédéric Light Commercial Vehicle Center of Excellence, with the manufacturing process set to take place at the Sandouville plant in Normandy. The first model from this new range, the Renault Trafic Van E-Tech electric, is scheduled for release in late 2026.

Volvo Group, through its Renault Trucks brand, will continue its longstanding partnership with Renault by distributing these new vehicles starting in 2027. CMA CGM Group, for its part, expressed its satisfaction in having played a crucial role in nurturing the project during its foundational phase, reinforcing its commitment to supporting the energy transition.

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French automotive supplier OPmobility has been awarded a contract to supply a global Original Equipment Manufacturer (OEM) with 350V battery packs for future Hybrid Electric Vehicle (HEV) models in North America. The agreement stipulates the delivery of over 1 million battery packs over the duration of the contract.

This award marks the expansion of OPmobility’s electrification business into the passenger car segment. Previously, the company’s battery activities focused on heavy-duty mobility, including buses, trucks and trains.

The battery packs will utilise Nickel Manganese Cobalt (NMC) cell technology. OPmobility will be responsible for the engineering and delivery of the complete system, comprising: the battery case, battery cells and the Battery Management System (BMS).

To fulfil the order, the Group will extend its existing production facility in Anderson, United States.

The contract aligns with the trend toward hybridisation in the automotive industry. OPmobility currently supplies both pressurised fuel tanks and battery packs, allowing for the optimisation of energy storage across Hybrid Electric (HEV), Plug-in Hybrid Electric (PHEV) and Extended Range Electric Vehicles (EREV).

Felicie Burelle, Chief Executive Officer, OPmobility, said, "This major award reflects the trust placed in OPmobility by one of the world’s leading automotive manufacturers and key customer of the Group, and our unique and differentiating positioning to address the growing hybrid market with a competitive edge. With this contract, we strengthen the product offering of our powertrain activity with a new strategic growth lever. This is fully in line with our technological and geographical diversification strategy for all types of mobility.”

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Swedish luxury car brand Volvo Car India and ChargeZone have inaugurated an ultra-fast electric vehicle (EV) charging station on the Mumbai-Nashik Highway. The facility is located at Food Hills near Igatpuri and features a 360kW power unit equipped with two dynamic load-balancing dispensers.

This marks the first installation between the partners as part of a 2025 Memorandum of Understanding aimed at developing a charging network across national corridors. The partners intend to add further stations throughout 2026.

The EV charging station utilises an intelligent configuration for power distribution. Dynamic load balancing allows the unit to adjust power output between the two dispensers based on vehicle requirements, which reduces waiting times.

The charger can be accessed through app-based navigation and payment systems. It features dedicated bays for Volvo electric vehicles.

Jyoti Malhotra, MD, Volvo Car India, said, "As a legacy brand, Volvo Cars is committed to driving the transition towards sustainable mobility, and this partnership with ChargeZone is a testament to that vision. Together, we are ensuring that our customers not only enjoy the luxury and performance of Volvo EVs but also have access to a dependable and hassle-free charging infrastructure. The new 360kW station on the Mumbai-Nashik highway is the first step in delivering a world-class charging experience across India."

Kartikey Hariyani, Founder & CEO, ChargeZone, added, “The launch of our first co-branded 360 kW ultra-fast charging station with Volvo Car India represents an important milestone in building a premium, future ready charging network for the country. The Mumbai Nashik hub showcases our focus on high speed, technology enabled infrastructure supported by intelligent features such as dynamic power loading that significantly improve the customer experience. As EV adoption accelerates, our priority is to ensure that long-distance travel becomes fast, predictable and seamless. We look forward to supporting India’s shift toward a cleaner and more sustainable mobility landscape.”

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Maruti Suzuki India Limited has officially commenced deliveries of its first all-electric offering, the e VITARA, heralding a significant advancement in the nation's transition to sustainable transportation. The company has introduced a range of innovative ownership schemes designed to make electric vehicles more financially accessible. Chief among these is the Battery-as-a-Service (BaaS) model, a dual-loan product that removes the substantial upfront cost of the battery, with the vehicle priced from INR 1,099,000 plus a usage-based battery rental of INR 3.99 per kilometre. Complementing this is the ‘e Flex’ scheme, which allows customers to upgrade to the e VITARA while maintaining an EMI similar to their existing car. To further enhance customer confidence, Maruti Suzuki is offering assured buyback plans, guaranteeing up to 60 percent of the vehicle's value after three years or 45,000 kilometres and 50 percent after four years or 60,000 kilometres.

The e VITARA is engineered for a carefree ownership experience, backed by comprehensive warranty coverage. It is available with two battery pack options, 61kWh and 49kWh (with a claimed driving range of up to 543 kilometres, both of which come with an industry-standard warranty of eight years or up to 160,000 kilometres. The vehicle itself carries a standard three-year warranty, with the option to extend coverage up to eight years on a payable basis.

In terms of safety and technology, the e VITARA is equipped with advanced features as standard. It incorporates Level 2 Advanced Driver Assistance Systems (ADAS), which include functionalities like Adaptive Cruise Control, Lane Keep Assist and Automatic Emergency Braking. Passive safety is addressed with seven airbags, including a driver-side knee airbag, as standard equipment. The vehicle is built on the HEARTECT-e platform, which utilises over 60 percent high-tensile and ultra-high-tensile strength steel and features an advanced battery protection system. This robust construction has helped the e VITARA achieve a comprehensive five-star safety rating from Bharat NCAP. The driving experience is further enhanced by the next-generation Suzuki Connect telematics system, which offers over 60 connected features. Customers can book the e VITARA at any NEXA showroom or through the official website with an initial payment of INR 21,000.

Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India Limited, said, “Maruti Suzuki’s EV strategy has been developed to ensure that the e VITARA becomes the primary EV choice for customers. The e VITARA offers a commendable driving range of over 543 km, supported by ‘e for me’ charging ecosystem that mirrors the reliability our customers have trusted for decades. With over 1,500 EV-ready service centres, specially trained NEXA EV relationship managers and dedicated charging managers, the e VITARA offers complete peace-of-mind. We are also introducing attractive flexible ownership plans with BaaS, alongside exclusive benefits for early adopters that make the e VITARA an irresistible proposition.”

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