India’s electric vehicle (EV) market continued its rapid expansion in 2025, with total EV sales touching 2.3 million units and accounting for 8 per cent of all new vehicle registrations, according to data from the government’s Vahan Portal.
A report by the India Energy Storage Alliance (IESA) said electric two-wheelers remained the biggest driver of growth, with sales of 1.28 million units, making up 57 per cent of total EV sales. Electric three-wheelers, including L3 and L5 categories, followed with 0.8 million units, or 35 per cent of the market.
Electric four-wheeler sales stood at around 1.75 lakh units during the year, with increasing demand seen in small and light commercial electric goods carriers, indicating rising adoption in the logistics and delivery segments.
India’s overall automobile market recorded 28.2 million vehicle registrations in 2025, of which two-wheelers accounted for 72 per cent. Passenger four-wheeler sales crossed 4.4 million units, while tractors and agricultural vehicles exceeded 1.06 million units.
On a state-wise basis, Uttar Pradesh emerged as the largest EV market with over 4 lakh units, representing 18 per cent of national EV sales.
Maharashtra followed with 2.66 lakh units, or 12 per cent, and Karnataka with 2 lakh units, accounting for 9 per cent of the total.
The report also highlighted strong EV penetration in several smaller states and regions. Delhi recorded an EV-to-ICE (internal combustion engine) ratio of 14 per cent, while Kerala stood at 12 per cent. Tripura led with 18 per cent, and Assam followed with 14 per cent, reflecting faster adoption of electric mobility in these markets.
Investment activity in the sector also remained strong.
India’s EV ecosystem raised over $1.4 billion in 2025, about 27 per cent higher than in 2024.
Electric vehicle manufacturers attracted the bulk of this funding, securing around $1.2 billion, with Delhi emerging as the top city for EV investments.
Looking ahead, industry estimates project electric car sales in the passenger vehicle segment at around 1.75 lakh units in FY26. Another industry report has also pointed to a $100 billion export opportunity in auto components, driven by the rapid growth in EV adoption over the past decade.
-IANS
