In 2025, India’s EV market hit a milestone with 2.3 million units sold, accounting for 8% of new vehicle registrations, driven by policy incentives, improving model availability, and a festive-quarter surge. According to the Annual Report: India EV Market 2025 released by the India Energy Storage Alliance (IESA), electric two-wheelers led the adoption (57%), followed by three-wheelers (35%) and four-wheelers (1.75 lakh units), with early growth in electric goods carriers.
Uttar Pradesh, Maharashtra, and Karnataka dominated sales, while states like Delhi, Kerala, Tripura, and Assam posted high EV-to-ICE ratios. The PM e-DRIVE scheme (₹10,900 crore) and the largest-ever electric bus tender further boosted electrification efforts.
India’s electric vehicle (EV) market reached a significant inflection point in 2025, with total EV sales rising to 2.3 million units, accounting for around 8% of all new vehicle registrations. According to the Annual Report: India EV Market 2025 by the India Energy Storage Alliance (IESA), based on Vahan Portal data, EV adoption gained steady momentum throughout the year, fueled by policy incentives and a sharp surge in purchases during the festive season. The report noted that electric mobility was consistently supported by central and state initiatives and improved model availability, with the festive-quarter spike providing a significant year-end boost to overall sales volumes.
Vehicle segment trends and EV adoption patterns
India’s overall automobile market recorded 28.2 million vehicle registrations in 2025, reflecting broadly stable demand across segments. Two-wheelers continued to dominate, with sales exceeding 20 million units and accounting for nearly 72% of total vehicle registrations. Passenger four-wheelers crossed 4.4 million units, while tractors and agricultural vehicles surpassed 1.06 million units, underscoring resilience in rural and farm-linked demand.
The report noted that overall vehicle sales growth remained relatively even during the first three quarters, followed by a sharp acceleration in Q4, driven by festive buying, GST-related benefits and year-end consumer demand.
Electric two-wheelers remained the backbone of EV adoption, with sales of 1.28 million units, representing 57% of total EV volumes. Electric three-wheelers (L3 and L5 combined) followed with 0.8 million units, accounting for 35% of EV sales. Electric four-wheelers registered sales of about 1.75 lakh units. Within this segment, the report highlighted strong momentum in electric goods carriers, particularly in small and light commercial vehicles, signalling early but meaningful progress in the electrification of logistics and last-mile delivery.
State-wise performance and policy support
At the state level, Uttar Pradesh emerged as India’s largest EV market in 2025, recording sales of over 4 lakh units, or 18% of national EV volumes. Maharashtra followed with 2.66 lakh units (12%), while Karnataka recorded around 2 lakh units (9%). Together, these three states accounted for more than 40% of total EV sales.
As per the report, some states posted higher EV-to-ICE ratios despite lower absolute volumes. Delhi recorded an EV penetration of 14%, Kerala 12% and Goa 11%, while Tripura (18%) and Assam (14%) also reported robust EV-to-ICE ratios in 2025.
The IESA report also observed that the electric three-wheeler segment has reached a sufficient level of market maturity, with penetration at around 32%.
A key policy milestone during the year was the completion of India’s largest-ever electric bus tender. Convergence Energy Services Limited (CESL) concluded a 10,900 electric bus tender under the Rs 10,900 crore PM E-DRIVE scheme.
Notably, the Government of India launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) scheme on 29 September 2024 to promote green mobility and strengthen the nation’s EV ecosystem. With a total outlay of ₹10,900 crore for the period 1 April 2024 to 31 March 2026, the scheme fully subsumes the earlier Electric Mobility Promotion Scheme (EMPS 2024). The scheme continues to cover all EV segments, but the government has extended support until 31 March 2028 specifically for e-ambulances and select categories, while incentives for electric two-wheelers (e-2W) and three-wheelers (e-3W) will conclude on 31 March 2026. As of 23 November 2025, a total of ₹1,634.62 crore in subsidies has already been disbursed under the scheme.
It is important to note that the Indian electric vehicle market was valued at US$ 8.49 billion in 2024 and is expected to expand at a CAGR of 40.7% between 2025 and 2030, according to a study by Grand View Research. As per the research report, this rapid growth is being driven by government measures, including subsidies and investments in charging infrastructure, aimed at promoting EV adoption. In addition, growing consumer awareness about environmental sustainability and the improving cost-competitiveness of electric vehicles are further boosting demand, positioning India as an emerging leader in the global EV market.
Conclusion
Overall, 2025 underscored India’s emergence as a fast-maturing EV market, driven by supportive policies, improving infrastructure and growing consumer confidence. Although electric mobility is currently led by two- and three-wheelers, increasing focus on buses and commercial vehicles points to a deeper, system-wide transition. With strong growth prospects and continued policy backing, India’s EV ecosystem is poised for sustained expansion beyond 2025.
Read more:
India Electric Vehicle Market (2025 – 2030)
India’s EV-adoption accelerates with multi-fuel strategy, says IESA E-mobility report
India Electric Vehicle Market Overview: 2025-2033
FAQs:
How did India’s EV market perform in 2025?
India’s EV market recorded sales of 2.3 million units in 2025, accounting for about 8% of all new vehicle registrations. Growth was supported by policy incentives, wider model availability and a strong festive-season surge.
Which EV segments drove adoption in 2025?
Electric two-wheelers led adoption with 1.28 million units sold, followed by electric three-wheelers at 0.8 million units. Electric four-wheelers saw smaller volumes but showed rising traction in goods carriers and logistics applications.
Which states led EV adoption in India?
Uttar Pradesh emerged as the largest EV market by volume, followed by Maharashtra and Karnataka. States such as Delhi, Kerala, Tripura and Assam recorded higher EV-to-ICE ratios, indicating deeper penetration despite lower absolute sales.
What role did government policy play in EV growth?
Government initiatives, particularly the PM e-DRIVE scheme with an outlay of ₹10,900 crore and the largest-ever electric bus tender, played a key role in boosting EV adoption across segments and strengthening the ecosystem.
What is the outlook for India’s EV market?
India’s EV market, valued at US$ 8.49 billion in 2024, is expected to grow at a CAGR of 40.7% between 2025 and 2030. Continued policy support, infrastructure expansion and rising environmental awareness are expected to sustain long-term growth.
