India’s Electric Vehicle (EV) Boom: Is the Market Ready for 2025 and Beyond

India’s electric vehicle revolution is gathering serious momentum. With more than 2.08 million EVs on the road by 2024, accounting for nearly 10% of the global EV stock, the country’s transformation from fossil fuels to electrified mobility is well underway (NITI AAYOG). But as with any rapid shift, challenges—from infrastructure gaps to market dynamics—threaten to stall progress.

EV Growth: Numbers Speak Volumes

• EV sales surged from 50,000 units in 2016 to over 2.08 million in 2024, reflecting rising consumer interest and policy support (NITI AAYOG).
• In 2025, electric car and bike production is projected to increase by over 140%, crossing 300,000 units, up from the previous year (S&P Global).
• Total EV sales were estimated at 1.97 million units in FY25, showing strong annual growth despite global economic pressures (IBEF).
• Monthly milestones include January 2025 alone seeing 169,931 EVs sold, representing 17% year-on-year growth (IBEF).
• Passenger EVs’ market share climbed from 2.6% to 4.1% year-on-year by May 2025

The EV landscape still leans heavily toward two- and three-wheelers, accounting for the vast majority of sales, while passenger cars remain in their infancy at around 2% market share (AP News).

Policy Push & State-Level Momentum

• The government is targeting 30% EV penetration of new vehicle sales by 2030
• The PLI Scheme dedicates ₹26,000 crore to EV manufacturing, ₹18,000 crore for advanced battery tech (ACC), and ₹10,000 crore for adoption incentives (FAME), aiming to generate up to 750,000 direct jobs
• Progressive states are stepping up: Uttar Pradesh, for instance, now leads in EV registrations with over 400,000, thanks to a pro-EV policy, charging infrastructure expansion, and tax incentives exceeding ₹942 crore
• VinFast, a Vietnamese EV maker, inaugurated a $500 million factory in Tamil Nadu, aiming to produce up to 150,000 EVs annually by mid-2025
• UPSRCTC also now prioritizes ‘Made in UP’ electric buses and is rolling out modern terminals and electric depots across the state

Private Sector Moves & Infrastructure Gaps

• Bajaj Auto resolved supply constraints of rare-earth magnets, enabling mass production of Chetak EVs, targeting 40,000 units in September, up from near-zero earlier due to shortages
• TrusTerra, an AI-powered platform for pre-owned EVs, aims to standardize the resale segment and build consumer trust, targeting a ₹500 crore valuation
• MSRDC is set to expand EV charging along the Pune-Mumbai Expressway with eight new sites, supporting Maharashtra’s goal of 30% EV adoption by 2030

Roadblocks on the Road Ahead

• Proposed GST reforms may inadvertently favor small ICE cars over EVs, even as EVs retain a 5% rate—raising concerns about slowing EV adoption momentum
• Tata Motors and Mahindra are pushing back against hybrid inclusion in government fleets, arguing hybrids dilute zero-emission goals and create policy uncertainty
• India’s EV financing ecosystem remains weak—opaque, expensive, and credit-constrained—hampering wider buyer participation

India’s EV Market Metrics at a Glance

Parting Thoughts: A Mixed Road Ahead

India’s EV adoption is driven by growing sales, strong two-wheeler uptake, bold state policies, and stepped-up local manufacturing. Yet, the path forward is cluttered with infrastructure gaps, policy ambiguity, financing bottlenecks, and market inertia.

If India genuinely wants to reach—not stretch—the 2030 EV target, the next steps will demand cohesive financing frameworks, charging investments, and aligning tax policies to ensure momentum not only maintains speed but accelerates for universal access.

• The Times of India
• AP News
• Reuters
• The Economic Times