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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Rincell has announced that it expects to ship over 500,000 battery cells across its product portfolio by the end of 2026, driven by commercial adoption of its RC50 21700 cell. The company is actively supplying battery cells to customers across the US, Europe and India.

The RC50 cell combines a 5Ah energy capacity with a 25A continuous and 50A burst output, retaining 80 per cent of its capacity after 1,200 full charge cycles. The cell has achieved UN 38.3 certification for international transport, IEC 62133 compliance for European markets, and BIS certification for India.

Applications for the RC50 encompass medical X-ray equipment, industrial machinery, commercial drones, and electric two-wheelers. In India, battery pack manufacturer Autorev is integrating the RC50 into its battery packs for electric scooters and motorcycles.

Founded in January 2023, Rincell operates a 6,500 sqft pilot manufacturing facility in Fremont, California, while carrying out volume production primarily in India. The company is currently constructing a production facility in the US, which is scheduled to become operational in late 2027.

Jignesh Parikh, Co-Founder and CEO, Rincell, said, "The RC50 is our all-rounder. It combines high energy, high power and long life in one cell, driving adoption across a wide spectrum of demanding commercial markets and building major order traction. Delivering that level of performance consistently and at scale is where so much of the battery industry has struggled, and it is what Rincell was built to do."

Mohammad Ubeduddin, CTO, Autorev, said, "Electric two-wheelers are one of the toughest jobs a battery can do. Riders in India push their scooters and motorcycles hard every day, through heat and stop-start traffic, so our packs need range, punch and a long working life all at once. The RC50 gives us all three in a single cell, and it has performed consistently in our own testing. That is what lets us build packs our customers can rely on as India’s electric two-wheeler market scales."

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Epsilon Advanced Materials has announced the launch of EpSil, a silicon-graphite composite anode material developed for electric vehicle battery cell manufacturing. The material is designed to increase battery energy density and enable driving range extensions of up to 30 percent without altering existing battery pack dimensions, or allow vehicle manufacturers to reduce pack size while maintaining current range metrics.

EpSil delivers a claimed reversible capacity of 600–650 mAh/g, compared to 340–360 mAh/g for conventional graphite anodes. The composite addresses structural cycle-life challenges associated with silicon expansion and contraction during charge cycles while supporting 1C–5C charge rates.

The material engineered by Epsilon aims to limit lithium plating risk and dendrite formation during high-rate charging protocols, and is compatible with existing battery cell production lines. The launch occurs against an expansion in global battery demand, with International Energy Agency data recording 1.2 TWh of electric vehicle battery deployment in 2025 and projecting demand to approach 3 TWh by 2030.

Vikram Handa, Managing Director, Epsilon Advanced Materials, said, "Battery manufacturers are being asked to deliver more range and faster charging without making battery packs larger. With Epsil, we are delivering higher anode capacity, stable fast charging and compatibility with existing manufacturing lines. Our aim is to give customers more flexibility in how they design for vehicle range and pack size, through a resilient & secure anode material supply option from India."

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Revolt Motors, a wholly-owned subsidiary of RattanIndia Enterprises, has secured an order to supply 1,100 BlazeX electric motorcycles to the Bihar Police for patrolling operations. The contract represents an expansion of the company's institutional business into law enforcement mobility.

The BlazeX model features a claimed range of up to 150 km per charge and can be recharged using a standard 10A power socket. The vehicle is equipped with a removable battery, under-seat storage for the charger and built-in GPS for fleet location tracking and monitoring.

Delivery of the vehicles is contracted for completion by January 2027, with Revolt Motors targeting completion of deliveries by November 2026. The deployment expands Revolt Motors' operational footprint, which currently includes a network of over 182 dealerships across India.

Anjali Rattan, Chairperson of RattanIndia Enterprises, said, "Securing an order for 1,100 electric bikes from Bihar Police is a significant step for Revolt. Institutional mobility presents a different set of requirements from individual ownership, and engagements of this scale give us an opportunity to take our products into real-world operating environments. We see institutional adoption as an important avenue for expanding the role of electric bikes in India."

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Amara Raja Energy and Mobility has announced its financial performance for Q2 FY2027, reporting revenue from operations of INR 38.43 billion, up 13.43 percent increase compared to INR 33.88 billion a year ago.

The profit before tax and exceptional items stood at INR 2.5 billion for the quarter ended September 30, 2026, compared to INR 2.8 billion in the same period of the prior year. For the half-year ended September 30, 2026, revenue reached INR 78.84 billion as against INR 67.38 billion in the previous half-year, while profit before tax stood at INR 5.2 billion.

The company attributed the performance to demand in the automotive battery aftermarket and original equipment manufacturer segments, home energy operations and stationary telecom battery packs.

Harshavardhana Gourineni, Executive Director of Automotive and Industrial, Amara Raja Group, said, "Robust OEM demand across 4W and 2W, together with healthy aftermarket volumes, drove domestic revenue growth of over 10 percent, while Industrial UPS grew over 7 percent. International demand remains strong, but geopolitical shipping disruptions have temporarily limited our ability to fulfil it. As logistics normalise, we are confident of accelerating growth."

Vikramadithya Gourineni, Executive Director of New Energy Business, Amara Raja Group, said, "We continue to see strong volume growth, led by the stationary segment, while our Giga Factory-1 in Telangana remains on track. With the Telecom sector rapidly shifting to lithium, we are confident of sustaining our market leadership through this technology transition. Our BESS plant is also expected to come online next month, further strengthening our capabilities across the energy storage value chain."

Jayadev Galla, Chairman and Managing Director, Amara Raja Group, "We delivered a solid performance this quarter. Our Lead Acid Business continued to perform strongly, supported by broad-based traction across segments, while the New Energy Business maintained its growth momentum. The progress on our Giga Factory remains on track, reinforcing our confidence in building a strong, future-ready energy platform."

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