India’s electric vehicle market crossed a symbolic threshold in 2025, with annual sales exceeding 2 million units and cumulative sales topping 6.16 million vehicles, according to JMK Research data. Electric two-wheelers dominated with more than half of total sales, followed by electric three-wheelers with roughly 36% share.
The growth underscores strong momentum but also highlights structural gaps in India’s clean mobility push. Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu and Bihar accounted for nearly half of EV sales, showing adoption remains concentrated in a few states.
Electric passenger cars remain a weak link. EVs represent only about 2% of India’s car sales, despite policy targets of 30% by 2030. Reuters reported that policymakers continue to shield domestic EV manufacturers while trying to attract foreign technology and investment.
Industry analysts say falling battery costs, rising fuel prices and government subsidies are driving demand, but infrastructure and financing gaps persist. Charging infrastructure expansion has lagged sales growth, while rural markets remain largely untapped.
The policy outlook remains supportive. India’s government is rolling out subsidy programs for two-wheelers and three-wheelers, while states are offering manufacturing incentives to attract global automakers. Analysts also note growing private capital inflows into battery manufacturing, charging networks and vehicle platforms.
Still, the market shows a two-speed transition. Light electric mobility is scaling rapidly, while passenger cars and buses face slower adoption due to cost and operational constraints.
For India’s net-zero ambitions, the challenge is shifting from early adoption to mass deployment. That will require cheaper batteries, denser charging networks and clearer policy signals to consumers and investors alike.
Reference- JMK Research Report, IEA, Reuters, ET Energyworld, Moneycontrol.com
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