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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JSW MG Motor India, one of the leading passenger vehicle manufacturers, has announced that it has successfully installed 1,000 community chargers under its MG Charge initiative.

Spanning more than 470 sites across India, the milestone makes JSW MG Motor India the first automaker in the country to establish community-led electric vehicle (EV) charging infrastructure at this scale. The installations are distributed across residential societies, condominiums, hospitals, corporate campuses, hotels and industrial parks.

Alongside the infrastructure announcement, the company revealed that MG-branded electric vehicles have cumulatively travelled over 2.9 billion green kilometres on Indian roads. This collective mileage has offset approximately 417,000 metric tonnes of CO2 emissions.

Furthermore, JSW MG Motor India has detailed an aggressive product timeline for the remainder of calendar year 2026 (CY2026). The automaker plans to launch three new New Energy Vehicles (NEVs).

This upcoming product push will mark the brand's introduction of plug-in hybrid (PHEV) technology to the Indian market. The company noted that its overarching corporate philosophy views India's transition to sustainable transit as a path that can be successfully driven by balancing multiple complementary technologies.

In alignment with national decarbonisation targets, JSW MG Motor India has systematically upgraded its primary manufacturing plant in Halol, Gujarat. The site has achieved significant efficiency metrics through the deployment of Industry 4.0 digitisation and Internet of Things (IoT) solutions.

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has announced a major expansion of its renewable energy footprint with two dedicated biogas projects on the occasion of World Environment Day.

The company has earmarked a cumulative investment of INR 9.25 billion through FY 2030–31 toward green energy initiatives to systematically curtail its carbon footprint across in-house manufacturing operations.

The automaker is investing INR 1.5 billion specifically into these two newly detailed biogas developments, aligning its corporate operations with the Government of India's ‘Waste-to-Wealth’ mission.

It has commissioned a new 10 TPD Biogas Plant at Kharkhoda, which is scheduled to be commissioned in FY2026–27. At full operational capacity, the plant is projected to mitigate 9,490 tonnes of CO2 emissions annually. The generated biogas will offset fossil fuel reliance by servicing approximately 20 percent of the total gas requirement at the Kharkhoda manufacturing site.

Furthermore, earlier this month, Maruti Suzuki India completed an expansion at its Manesar facility, scaling output from an initial 0.2 TPD to 0.7 TPD. The expanded setup is expected to generate roughly 360,000 standard cubic meters of biogas annually, avoiding an estimated 664 tonnes of CO2 emissions per year.

The plant leverages anaerobic digestion technology to convert organic and agricultural waste into raw biogas. It uses food waste, napier grass and paddy straw as feedstock, with a technical provision to boost output utilising cattle dung. The output will be directed into paint shop heating processes and factory canteen operations. Fermented Organic Manure (FOM) generated as a byproduct will be routed to internal horticulture or supplied back into the local agricultural ecosystem.

Beyond localised biogas projects, Maruti Suzuki is systematically scaling its solar energy infrastructure to counter liquid natural gas (LNG) volatility and supply constraints. It has progressively expanded its installed solar capacity to 79 MWp across its manufacturing facilities and targets an expansion to 319 MWp of solar-generated renewable energy by FY 2030–31.

The automaker recently replaced natural gas with biogas for approximately 10 percent of the energy requirements at its Hansalpur facility. Supported by SRDI (a wholly owned subsidiary of Suzuki Motor Corporation, Japan), this transition ensured uninterrupted operations during active LNG supply bottlenecks.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “Maruti Suzuki has been consistently working on initiatives aimed at reducing fossil fuel consumption and oil import dependence. In line with this, we are setting up a new 10 Tonnes Per Day biogas plant at the Kharkhoda facility as well as expanding the existing biogas plant at Manesar facility. At a time when the world is navigating an increasingly uncertain energy landscape, such initiatives assume greater significance. As the Hon’ble Prime Minister of India has called for reducing dependence on fossil fuels, the commissioning of our biogas project comes at an appropriate time. It enables us to contribute, in a modest but meaningful way, to the current national priority alongside several other ongoing efforts.”

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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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