India’s EV market unlocks new milestone with over 2 mn registrations

Here’s a question for you: ICE or EV? For decades the combustion engine ruled Indian roads without competition, but the auto market of 2025 has turned that question into a serious battle for market share.

India’s electric vehicle market has touched a new milestone this year, with total EV registrations (excluding hybrids) crossing 2.02 million units, already surpassing the full-year 2024 figure of 1.95 million units, on the back of rising consumer demand, wider model availability and certain level of policy support for clean mobility.

According to a report by The Times of India, the current calendar year marks the first time EV registrations have crossed the 2 million unit mark with more than a month still left. The electric two-wheeler segment continues to dominate, followed by electric passenger vehicles and electric three-wheelers.

Segment-wise performance of EVs in 2025

• Electric two-wheelers- 1.2 million units registered so far, already higher than the total of 1.15 million units in 2024.
  
• Electric passenger vehicles (cars & SUVs)- 156,455 units, up 57% from 99,429 units a year earlier.
  
• Electric three-wheelers- 6.90 lakh units, steady compared to 6.91 lakh units in 2024.

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Industry outlook shows steady demand across segments

Despite shifts in policy, demand has remained firm, analysts have noted. “We expect mid-teen growth in 2025, softer than last year’s 27% surge but still healthy, supported by firm 2W demand, steady 3W fleet electrification, and a competitive 4W launch pipeline, indicating a sustainable growth cycle,” Poonam Upadhyay, director, Crisil Ratings, told TOI.

“Established OEMs have driven E2W growth this year, leveraging their extensive dealer networks, competitive pricing, and higher-range models to expand the customer base and boost retail confidence despite policy changes,” she added.

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Another key driver, according to Upadhyay, has been consumer confidence in charging access. “While charging infrastructure remains a consideration for long-distance travel, it's no longer a major concern for urban buyers who can rely on home and workplace charging. Expanding networks and increasing ranges are easing earlier infrastructure concerns.”

Automakers boost capacity and product lineup

Legacy carmakers that built their empires on petrol and diesel are now racing to prove they can dominate the electric future too, rolling out new EVs, expanding battery localisation and building charging ecosystems at a pace never seen before in the industry.

Maruti Suzuki has entered the EV market with e-Vitara with plans to export between 50,000 and 100,000 of the EVs a year.

Tata Motors, which already leads the EV segment, is investing in advanced battery technology, expanding its lineup of electric SUVs and hatchbacks, and scaling production across its manufacturing facilities to meet growing demand.

Hyundai Motor India is prioritising a robust charging infrastructure network as a key differentiator, while simultaneously strengthening its EV lineup through new models and localisation of high-value components.

MG Motor India is scaling up production of electric SUVs and is looking to partner with local component makers to reduce costs and expand access to EVs nationwide.

BYD is also growing its footprint in India and exploring retail expansion beyond metro cities to draw a wider customer base. Elon Musk-led Tesla has also entered the country with an electric car alongside China's VinFast.

(With TOI inputs)