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 network ChargeZone and inter-city bus operator Fresh Bus have announced an expansion of their commercial partnership. As per the agreement, Fresh Bus will deploy 400 additional electric buses operating on ChargeZone's charging infrastructure.

The expansion increases the fleet supported by ChargeZone infrastructure from 100 to 500 buses. The operations will cover 20 cities and 17 towns across Tamil Nadu, Karnataka, Andhra Pradesh and Telangana over the next 15 months.

To support the fleet, ChargeZone will add 30 MW of charging capacity to its existing 10 MW dedicated infrastructure for Fresh Bus, bringing total capacity for the operator to 40 MW.

The installation forms part of ChargeZone’s target to add 200 MW of capacity across its network. The expanded operations are projected to supply 100 million units of energy annually and accommodate over 20,000 daily passenger trips.

Kartikey Hariyani, Founder and Chief Executive Officer, ChargeZone, said, "India's EV transition will not be driven by personal vehicles alone. Commercial mobility, particularly intercity public transport, can play a critical role in taking electrification to scale because these vehicles operate frequently, travel longer distances and depend on predictable infrastructure. Our partnership with Fresh Bus has shown that when charging capacity, uptime and energy availability are built around the needs of fleet operations, operators can scale electric mobility with greater confidence. This expansion is about taking that proven model to more routes and demonstrating how charging infrastructure can enable intercity public transport to electrify at scale."

Sudhakar Reddy, Founder, Fresh Bus, said, “When we started Fresh Bus, the biggest question wasn't whether passengers would choose electric intercity travel, it was whether the charging infrastructure could keep pace with a growing fleet running every day, across every corridor. Our partnership with ChargeZone has answered that question. The reliability of their network is what has allowed us to move from proving the model to scaling it with confidence. Expanding to 500 buses and 40 MW of dedicated charging capacity is not just a fleet decision, it's a statement that electric intercity travel can be dependable, affordable, and ready for the passengers. This is what public electric mobility in India should look like: comfortable for the commuter, sustainable for the planet, and built to scale.”

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Vietnamese electric vehicle manufacturer VinFast recently outlined its driver-assistance technology roadmap, global supply chain strategy and financial targets during the Bloomberg Sustainable Business Summit.

Speaking at the event, Anne Pham, Head of International Capital Development at parent company Vingroup, detailed the automaker's phased approach to vehicle autonomy. VinFast's current vehicle lineup operates at Level 2 Advanced Driver Assistance Systems (ADAS), providing functions such as adaptive cruise control and lane-centering. The company plans to transition to Level 2+ and Level 2++ capabilities in upcoming vehicle generations, extending automated assistance features while maintaining driver supervision. Each phase of the software rollout will rely on real-world data validation prior to deployment.

Addressing international operations and supply chain management, Pham highlighted the company's regional manufacturing expansion outside Vietnam, including facilities built in India and Indonesia to serve as production and export bases.

“We have taken several steps to ensure that we are investing for the future,” said Pham.

Regarding trade dynamics and international market presence, Pham confirmed that the manufacturer's operational plans for North America remain active.

Pham said, “VinFast currently has sales in various parts of the world, including North America and the United States. Our U.S. sales plans remain on course.”

Commentary on global market conditions focused on energy sector fluctuations and regulatory policies as drivers for electric vehicle adoption rates.

Pham averred, “The transition to EVs has benefited not only from regulatory support around the world, but also from market volatility.”

On financial performance metrics and profitability targets, Pham indicated that the automaker expects its domestic operations to achieve profitability within three years.

Pham concluded, “We are on track to break even in Vietnam by 2027.”

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Youdha has unveiled the EPOD-Bharat, a limited-edition hand-painted version of its L5 electric passenger three-wheeler. The electric three-wheeler was displayed at the Bharat Vyapar Mahotsav at Bharat Mandapam in New Delhi.

The exterior artwork draws inspiration from Warli art, featuring depictions of rural life, nature and community gatherings. The initiative combines traditional Indian art forms with commercial electric vehicle manufacturing.

The base EPOD vehicle is powered by a 6 kW motor generating 50 Nm of torque, paired with an 11.8 kWh lithium-iron-phosphate battery pack. The powertrain delivers a certified range of up to 227 kilometres per charge and includes City and Boost driving modes. The chassis provides a 300 mm water-wading depth for operation across varied road conditions.

Priced from INR 320,000, the passenger three-wheeler targets self-employed drivers and commercial fleet operators. Production takes place at Youdha’s assembly plant in Kashipur, Uttarakhand, which maintains an annual manufacturing capacity of 100,000 units.

Ayush Lohia, Chief Executive Officer, Youdha, said, “EPOD-Bharat is our tribute to the spirit of Bharat and to the women and artisans whose creativity and resilience continue to shape our country. We wanted to bring traditional Indian art onto a modern electric mobility platform, creating a vehicle that represents both our heritage and our aspirations for the future.”

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Electric mobility startup E3 Electric.Ai has opened its first retail and service outlet in Koramangala, Bengaluru. The 2,500 square foot facility integrates sales, servicing and spare parts management within a single location.

The flagship centre displays the company's E3 Trion electric scooter range, comprising the C1, C1x and C2 models. The facility features interactive stations for customers to test vehicle software functions, including diagnostic systems, predictive telemetry tools, and IoT connectivity features. The location also includes public charging infrastructure through Type 7 DC fast chargers installed in collaboration with Kazam EV Tech.

Sanjeev P, Founder and Chief Executive Officer, E3 Electric.Ai, said, “An electric scooter is only as good as the ownership experience behind it. That’s exactly what we’ve built in Koramangala, a place where a customer can experience all three Trion variants, run the AI HEALTHSCAN themselves, charge their vehicle, and get it serviced, all in one visit. We didn’t want a showroom that just sells the Trion. We wanted a space that lets people feel the intelligence and engineering behind it. Starting in Bengaluru, on India’s 80th Independence Day, felt right. This is home ground for us, and it’s where we want every future dealership to be measured against.”

The Koramangala facility serves as the initial unit under the company's build-and-transfer retail framework. E3 Electric.Ai plans to establish six partner dealerships across Bengaluru and extend operations to Mysuru. The company aims to expand its retail network to 100 dealerships across more than 90 markets in India within the current financial year.

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