TL;DR
India's EV market boasts 6.5 million vehicles and strong sales growth, predominantly in two and three-wheelers, but faces hurdles like high costs and inadequate charging infrastructure for wider passenger car adoption.
India's electric vehicle market is experiencing an unprecedented boom, with nearly 6.5 million EVs now on the roads and over 2 million units sold in the financial year 2024-2025 alone. This remarkable growth has seen EV sales in the April–June 2025 quarter rise by 34 percent year-on-year, capturing approximately 8 percent of overall vehicle sales.
The surge is largely driven by a mass-market revolution in two-wheelers and three-wheelers, which account for more than half and 36 percent of EV sales respectively. These segments are favored by commuters due to lower running costs and reduced maintenance. In contrast, electric passenger cars remain a smaller part of the market, making up only about 5 percent of car sales in 2025, primarily due to high upfront costs and underdeveloped charging infrastructure.
Despite government initiatives like subsidies and production-linked incentives aimed at achieving 30 percent EV penetration by 2030, the current overall EV penetration across all categories stands at 7-8 percent. Challenges such as patchy charging networks and the underutilization of allocated government funds continue to hinder wider adoption, particularly for electric cars.
