TL;DR
India's EV market grew at a 63% CAGR over six years, reaching nearly 2 million registrations in FY25, driven by two-wheelers and government policy support.
India's electric vehicle (EV) market has demonstrated exceptional growth, recording a compounded annual growth rate (CAGR) of 63% over the past six years. Total EV registrations in the fiscal year 2025 reached an impressive 1.97 million units, marking a 16.9% year-on-year increase from 1.68 million units in FY24, according to the Economic Survey 2025-26.
Electric two-wheelers remain the dominant category, with registrations soaring by 21% in FY25 to reach 1.15 million units. Additionally, electric passenger vehicles have surpassed the 100,000-unit mark for the first time, showing an 18% increase over the previous year. This data indicates a continued concentration of EV adoption in more affordable vehicle segments.
This significant growth is attributed to various policy measures, substantial manufacturing investments, and expanding infrastructure programs. Government initiatives like the Production-Linked Incentive (PLI) scheme for the automobile and auto components industry, along with the PLI program for Advanced Chemistry Cell (ACC) battery storage, are actively supporting domestic battery manufacturing and boosting overall market expansion. The PM E-Drive scheme is also providing demand incentives for electric two- and three-wheelers, e-trucks, and e-ambulances, while also funding charging infrastructure.
