The Electric Vehicle (EV) market in India is growing rapidly and showing strong signs of long-term expansion. Here's a detailed breakdown of the current trends, growth drivers, and future outlook as of 2025:
EV Market Trends in India (2025)
✅ 1. Rapid Market Growth
EV adoption in India has been growing steadily, especially in two-wheelers and three-wheelers.
Over 1.5 million EVs were sold in FY 2023–24.
The EV market is expected to grow at a CAGR of over 40% until 2030.
✅ 2. Two-Wheelers Lead the Charge
Electric scooters and bikes dominate the EV space in India (Ola Electric, Ather, TVS iQube, Bajaj Chetak).
Affordable pricing, low running cost, and government subsidies make them popular.
✅ 3. Rise in E-Three Wheelers
E-rickshaws and e-autos are widely used for last-mile transport and delivery services.
Seen in cities like Delhi, Lucknow, Patna, and other Tier 2 and 3 cities.
✅ 4. Electric Cars Growing Slowly but Steadily
EV cars are gaining traction, but adoption is slower due to:
High upfront cost
Limited charging infrastructure
Range anxiety
Popular models: Tata Nexon EV, Tata Tiago EV, MG ZS EV, BYD Atto 3, and Hyundai Kona EV.
✅ 5. Government Push
Strong support through schemes like:
FAME II (Faster Adoption and Manufacturing of EVs)
PLI Scheme for advanced battery manufacturing
State-level EV policies offering subsidies, road tax waivers, and registration fee exemptions.
✅ 6. Charging Infrastructure Expansion
Focus on building fast-charging stations on highways, urban hubs, and fuel stations.
Companies like Tata Power, Ather Grid, ChargeZone, and BPCL are actively investing.
✅ 7. Entry of Global and Indian Players
Many auto giants (Tata, Mahindra, Hyundai, MG, BYD) are launching EV models.
Startups like Ola Electric, Simple Energy, and Bounce are innovating in the 2W space.
✅ 8. Battery Swapping & Leasing Models
Battery-as-a-Service (BaaS) is emerging for commercial fleets.
Reduces EV cost and makes operation more flexible, especially for delivery/logistics services.
Future Outlook
India aims for 30% EV penetration by 2030.
Focus on local battery production, reducing import dependency.
More affordable EV models are expected by 2026–27.
Integration with solar charging and smart grids could be a game-changer.