India’s EV sector hit a milestone in FY2025 with 20 lakh annual sales and 61.65 lakh cumulative EVs, led by two-wheelers at nearly 60%. Three-wheelers and cars grew steadily, while e-bus sales dipped slightly. Adoption is expanding beyond metros, with Bihar entering the top five states. Key growth drivers include affordability, supportive policies, localized infrastructure, tailored incentives, rural financing, and awareness campaigns in regional languages. The long-term outlook remains strong.
Image Source: Freepik
India’s electric vehicle (EV) sector achieved a major breakthrough in FY2025, recording over 20 lakh units in annual sales and reaching a cumulative total of 61.65 lakh EVs by March 2025, according to JMK Research & Analytics’ Annual India EV Report Card: FY2025. Electric two-wheelers (E2Ws) led the momentum, contributing to more than half of total EV sales. The market expanded by approximately 19% year-on-year, driven by soaring fuel prices, worsening urban traffic, and significant improvements in EV affordability and performance.
Mr Kunal Arya, co-founder & managing director, ZELIO E Mobility Ltd stated, “The rising adoption of electric vehicles in India is the result of a well-aligned shift in economics, technology and user behaviour.”
Electric two-wheelers
The electric two-wheelers continued to dominate India’s EV market, accounting for nearly 60% of total EV sales in India—around 1.2 million units. The segment saw a robust 20% year-on-year growth and has expanded over 42 times since FY2020. This surge highlights the growing shift among urban commuters toward affordable, eco-friendly options like e-scooters and e-bikes.
Ola Electric, TVS Motors, and Bajaj continued to dominate the E2W segment, together accounting for over 70% of registrations.
Mr Arya attributed this surge to a combination of economic feasibility, evolving consumer behavior, and advances in EV technology.
“Electric two-wheelers are increasingly becoming the go-to choice for daily commuting,” he said, citing better battery reliability and extended range as key enablers. Government incentives and supportive policies have further boosted accessibility and adoption.
Three-wheelers and electric cars: Steady growth
Passenger electric three-wheelers (E3Ws) followed closely, holding around 36% of the total market. Combined passenger and cargo E3W sales grew 11% year-on-year, with Mahindra Last Mile Mobility, Bajaj Auto, and YC Electric emerging as key players. These vehicles remain essential for last-mile connectivity, particularly in tier-II and tier-III cities where affordability is crucial.
Electric car sales also continued on an upward trend, growing 11% from the previous year. Tata Motors led with a dominant 53% share, while MG Motor followed at 28%. However, higher upfront costs and limited charging infrastructure remain challenges for broader EV adoption in the passenger car segment.
E-Bus sales see a dip, but long-term outlook remains positive
The electric bus segment saw a slight dip of 3% in sales compared to FY2024. Despite the decline—likely due to procurement delays and policy uncertainty at the state level—Tata Motors, Olectra Greentech, and PMI Electro maintained a stronghold, contributing nearly 69% of all electric bus sales. The long-term demand for e-buses remains intact, especially in public transportation.
State-Level insights: Expansion beyond urban India
Uttar Pradesh topped the list in cumulative EV sales for FY2025, followed by Maharashtra, Karnataka, Tamil Nadu, and notably, Bihar. The inclusion of Bihar in the top five highlights growing EV adoption beyond metro cities, signalling deeper market penetration across rural and semi-urban regions.
Mr Arya emphasized the importance of region-specific strategies to sustain this growth.
“Expanding targeted incentives, ensuring timely subsidy disbursals, and offering easy financing options will help make EVs more affordable and appealing to a broader audience,” he noted.
He further emphasized the need for greater investment in localized charging networks, battery-swapping facilities, and specialized EV skill development programs. Mr Arya also highlighted the importance of public awareness campaigns in regional languages, noting that they are essential for driving adoption and translating policy into effective on-ground implementation.
The road ahead
India is not merely transitioning to electric mobility — it is spearheading a quiet revolution that is smart, inclusive, and sustainable. To sustain and build on this momentum, industry leaders are calling for- Localized infrastructure like regional charging stations and battery-swapping networks; Region-specific incentives and faster, more efficient subsidy delivery; Financing solutions tailored for rural and small-town users; and Skilling and awareness programs in local languages to bridge the knowledge gap.
