Advantage India
Robust
Demand
* Indian automakers will launch nearly a dozen new EVs in 2025, focusing on premium models, as India’s EV sales rose 20% despite slowing global demand, with a 30% target by 2030.
* As of July 2025, India’s EV charging network has expanded rapidly, growing nearly fivefold from FY22 to early FY25. Public charging stations rose from 5,151 in 2022 to 11,903 in 2023 and reached 26,367 by early FY25, marking a strong 72% CAGR.
* Sales of electric vehicles (EVs) in India’s luxury segment rose by 66% YoY to 2,027 units during the first five months of 2025, up from 1,223 units in the same period of 2024, as per data from the VAHAN portal of the Ministry of Road Transport and Highways.
Opportunities
* Opportunity for the EV sector lies with the establishment of 1.32 million charging stations in India by 2030, requiring 4,00,000 installations yearly.
*Tamil Nadu is set to receive around Rs. 50,000 crore (US$ 5.84 billion) in EV sector investments by 2025, aiming to generate approximately 150,000 jobs.
*Union Minister of Commerce & Industry, Mr. Piyush Goyal, launched Bharat Mobility Global Expo 2025, outlining India's vision to lead in EVs and target Rs. 8,65,000 crore (US$ 100 billion) exports through innovation and cost-competitiveness.
*In June 2025, Union Minister for Road Transport and Highways, Mr. Nitin Gadkari announced that India is advancing hydrogen fuel cell trucks as a key solution to reduce emissions in freight transport, with foundational work already in progress.
Policy
support
*In Phase-II of the FAME India scheme, the Ministry of Heavy Industries (MHI) approved a capital subsidy of Rs. 800 Crore (US$ 96.13 million) to set up 7,432 Electric Vehicle Public Charging Stations (EVPCS).
*100% FDI allowed under automatic route for the auto components sector.
*The Ministry of Housing and Urban Affairs launched the PM-eBus Sewa Scheme on August 16, 2023, with a Rs. 20,000 crore (US$ 2.28 billion) support to deploy 10,000 electric buses through the PPP model. By July 31, 2025, 7,293 e-buses had been sanctioned across 14 states and 4 union territories.
*A 100% customs duty exemption was granted on 25 critical minerals, including lithium and cobalt, essential for EV battery production.
*On July 29, 2025, DPIIT signed an MoU with EV maker Ather Energy to boost India’s EV and manufacturing startup ecosystem. The partnership will support deep-tech startups with mentorship and infrastructure in areas like battery tech, vehicle manufacturing, and clean energy.
Investments
*India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually.
*India is on track to become the largest EV market by 2030, with rise in investment over the next five years.
*India’s auto component industry will see Rs. 25,000-30,000 crore (US$ 2.89-3.46 billion) investment in FY26 for capacity expansion and EV parts, after Rs. 15,000-20,000 crore (US$ 1.73-2.31 billion) in FY25, says ICRA
*According to Moody’s, in 2025, Indian carmakers are making major strides toward the future, investing around Rs. 85,420 crore (US$ 10 billion) in electric vehicles, lithium-ion batteries, and EV manufacturing to meet the rising demand.
*Vietnam’s EV maker VinFast has opened its first overseas plant in Thoothukudi, Tamil Nadu, marking its third facility globally. The project involves a phased investment of Rs. 16,000 crore (US$ 1.83 billion), with Rs. 4,300 crore (US$ 490 million) committed in the initial phase.
Introduction
India's electric vehicle (EV) sector is experiencing rapid growth, fuelled by government incentives, rising environmental concerns, and technological advancements. With initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, India aims to significantly increase EV adoption, revolutionizing its transportation landscape towards sustainability and innovation. The country has set an ambitious target to elevate EV sales to 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers by 2030, translating to approximately 80 million EVs on Indian roads, alongside a focus on complete domestic EV production through the 'Make in India' initiative.
Globally, the electric vehicle market was valued at US$ 755 billion in 2024 and is forecasted to reach US$ 4,360 billion by 2033, growing at a CAGR of 21.5% from 2025-33. The Indian EV market, valued at US$ 2.36 billion in 2024, is projected to grow to US$ 164.42 billion by 2033, registering a remarkable CAGR of 57.23%, while the Indian EV battery market is expected to expand from US$ 2.22 billion in 2024 to US$ 13.89 billion
by 2033 at a CAGR of 22.6%. On the domestic front, total automotive sales in Q1 FY26 were around 6.57 million vehicles, of which approximately 549,736 were electric, representing 8.36% EV penetration. The sector is dominated by two- and three-wheelers, which accounted for roughly 91.41% of total EV sales in the same period, while electric passenger vehicles (4Ws) grew 87.72% YoY to around 35,000 units.
India’s EV sales grew by 16.9% in FY25 to 1.97 million units, up from 1.75 million in FY24. Electric passenger vehicles crossed the 100,000-unit mark with 18.2% growth, e-two-wheeler registrations rose 21.2% to 1.15 million units, and e-three-wheelers increased 10.5% to around 700,000 units. EV passenger vehicles are projected to contribute significantly to the planned 30% market share by 2030, and Indian automakers are preparing to launch nearly a dozen new EVs in 2025, focusing primarily on premium models, despite slowing global demand. The shift towards electric vehicles is expected to create fresh opportunities for automotive suppliers, with the Indian EV battery market projected to rise from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028. EV sales penetration in India is expected to exceed 7% by FY28, contingent on the timely resolution of rare earth element supply disruptions and continued model launches.
On the infrastructure side, India’s public EV charging network is expanding rapidly. As of February 2024, there were 12,146 operational charging stations nationwide, with Maharashtra leading, followed by Delhi and other states. A Confederation of Indian Industry (CII) report highlighted the need for at least 1.32 million charging stations by 2030 to support EV growth, requiring over 4,00,000 installations annually. Major industry players are actively enhancing charging infrastructure, with Hyundai Motor India expanding its ultra-fast network with 11 new stations in key cities such as Mumbai, Pune, Ahmedabad, Hyderabad, Gurugram, and Bangalore, as well as along major highways. State-specific targets complement national efforts: Maharashtra aims for 10% EV share in all new vehicle registrations by December 2025, while Karnataka plans to electrify 100% of its three- and four-wheeler cargo vehicles by December 2030.
Market Size
A recent survey highlights strong interest among Indian consumers in new energy vehicles (NEVs), with 83% of respondents indicating their readiness to choose NEVs exclusively for future purchases by the end of this decade. Reflecting this growing demand, India’s public EV charging network has expanded rapidly at a CAGR of about 72% between FY22 and FY25, increasing from around 5,151 chargers in CY22 to 11,903 in CY23, doubling to 25,202 by the end of FY24, and reaching 29,277 as of July FY25—a five-fold increase over the period. This growth has been supported by government initiatives such as the PM E-DRIVE scheme, which allocated Rs. 2,000 crore (US$ 227.20 million) specifically for the installation of public EV charging stations nationwide.
State-level leadership in charging infrastructure is evident, with Karnataka leading as of July 2025, hosting approximately 6,097 public charging stations, surpassing Maharashtra, driven by early EV policy adoption and a strong push for fleet electrification. Reflecting the growing adoption of electric vehicles, passenger EV sales surged 75% YoY in Q1 FY26, raising market penetration to 3.5% from 2% a year
earlier. Kerala led with 7.9% penetration, followed by Delhi, Karnataka, Maharashtra, and Tamil Nadu, driven by rising consumer demand and policy incentives. Electric car sales in August 2025 surged to 17,298 units, marking a 155% year-on-year rise from 6,787 units in August 2024.
The automobile sector has also attracted significant foreign investment, receiving a cumulative equity FDI inflow of approximately Rs. 2,59,753 crore (US$ 39.15 billion) between April 2000 and June 2025. Looking ahead, India’s EV finance industry is expected to grow substantially, with NITI Aayog and the Rocky Mountain Institute (RMI) projecting it to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030.
Investment
- Vedanta Limited announced on World EV Day (September 8, 2025) that it has invested over Rs. 12,500 crore (US$ 1.42 billion) to boost metal production for India’s electric vehicle industry, expanding capacity across aluminium, zinc alloy, and ferrochrome plants.
- On August 4, 2025, Vietnam’s EV maker VinFast has opened its first overseas plant in Thoothukudi, Tamil Nadu, marking its third facility globally. The project involves a phased investment of Rs. 16,000 crore (US$ 1.83 billion), with Rs. 4,300 crore (US$ 490 million) committed in the initial phase.
- In August 2025, Suzuki Motor announced an US$ 8 billion investment in India over five-six years and began production of its first EV in Gujarat, aiming to expand EV manufacturing capacity.
- In August 2025, Ola Electric showcased its indigenously developed ferrite motor that requires no rare-earth magnets, aimed at supply chain independence and to be deployed starting Q3 FY26. They also unveiled the integration of the 4680 Bharat Cell, India’s first indigenously developed lithium-ion cell, in their vehicles with plans to continue expanding product offerings.
- In July 2025, YULU raised Rs. 25.7 crore (US$ 2.92 million) in a Series B3 funding round from Magna International via allotment of Series B3 Compulsory Convertible Preference Shares (CCPS). This investment bolstered Yulu's plans for a US$ 100 million Series C funding to scale its gig-economy electric scooter operations.
- On July 29, 2025, DPIIT signed an MoU with EV maker Ather Energy to boost India’s EV and manufacturing startup ecosystem. The partnership will support deep-tech startups with mentorship and infrastructure in areas like battery tech, vehicle manufacturing, and clean energy.
- In August 2025, battery electric vehicle production in India is set to nearly triple to 377,000 units in 2025 from 130,000 in 2024, driven by major launches from Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, and JSW MG Motor, capturing a 6.6% market share.
- Mahindra & Mahindra has pledged Rs. 12,000 crore (about US$ 1.44 billion) over the next three years to strengthen its electric vehicle arm, Mahindra Electric Automobile Ltd. This major investment reflects the company’s strong push toward a cleaner, greener future in mobility.
- Indian conglomerate JSW Group is set to launch its own EV brand following a US$ 1.5 billion joint venture with China's SAIC Motor to produce MG-brand electric vehicles. JSW's new car plant in Aurangabad, Maharashtra, will focus on manufacturing vehicles under its own brand, aiming to contribute significantly to India's EV market.
- Tata Motors aims to achieve 30-40% of its sales from electric vehicles (EVs) by FY30 and plans to invest approximately Rs. 18,000 crore (US$ 2.16 billion) to create an ecosystem for its electric vehicle business. Over the next two years, the company has scheduled the launch of new models.
- Ather Energy has secured Rs 600 crore (US$ 71 million) from the National Investment and Infrastructure Fund, increasing its valuation to US$ 1.3 billion. This investment positions Ather as India’s fourth unicorn of 2023.
- Ather Energy signs pact with Infineon Technologies to drive innovation in EV space.
- Ultraviolette Automotive Ultraviolette has entered the European market with its F77 MACH 2 and F77 SuperStreet electric motorcycles, launching across 10 countries including Germany, France, the UK, and Italy. The company aims to derive 30-35% of its revenue from global export by 2028, starting with Europe in 2025.
- The World Bank's IFC invested US$ 137 million in India's e-bus sector, funding JBM Ecolife US$ 100 million and GreenCell Mobility US$ 37 million to deploy 4,000 electric buses and create 12,000 jobs across several Indian states.
- Uttar Pradesh is leading in EV adoption with over 400,000 registrations as of May 2025, driven primarily by e-rickshaws. Under its Electric Vehicle Manufacturing and Mobility Policy 2022, the state aims to attract Rs. 30,000 crores (US$ 3,507 million) in investments and generate 1 million jobs, reinforcing its position as a major player in India’s EV sector.
- In 2024, notable EV investment commitments include Tata Motors-JLR Rs. 9,000 crore (US$ 1.07 billion), VinFast up to Rs. 16,500 crore (US$ 2 billion), Royal Enfield Rs. 3,000 crore (US$ 358.1 million), and Stellantis Rs. 2,000 crore (US$ 238.7 million).
- In June 2024, BM Electric Vehicles Private Limited, a subsidiary of JBM Auto Limited, has signed an agreement with MUON India Private Limited, a Macquarie Group company. Macquarie Group has launched 'Vertelo,' an EV financing platform in India that will provide financing, fleet management, and charging infrastructure solutions.
- In April 2024, Uno Minda, an auto components manufacturer, announced on Wednesday that it has partnered with Suzhou Inovance Automotive Co. from China to produce electric vehicle components.
- In March 2024, BYD India, a subsidiary of the world's leading New Energy Vehicles (NEV) manufacturer, announced its entry into the luxury electric sedan segment with the launch of the BYD SEAL. BYD India currently has two products in its portfolio - the BYD ATTO 3 and the All-New e6, both of which have been very well received by Indian consumers.
- In March 2024, Okaya EV, a prominent electric two-wheeler manufacturer, has launched "Ferrato," its premium electric vehicle brand, as part of its nationwide expansion strategy, they will prioritize high-end models.
- In January 2024, VinFast and Tamil Nadu Govt. signed a MoU to invest US$ 2 billion for an EV project in Thoothukudi, with US$ 500 million committed for the first phase, targeting 150,000 units annually.
- In October 2023, Ministry of Electronics & Information Technology (MeitY), Mr. S Krishnan attended the unveiling of a domestically developed 2KW DC Portable Charger at IIT Madras Research Park. This initiative aims to accelerate electric vehicle adoption.
- In October 2023, Mr. R. K. Singh, Union Minister for Power and New & Renewable Energy, unveiled the new EV-Ready India Dashboard (evreadyindia.org) in New Delhi, facilitating access to pertinent information.
- In December 2023, Indian Oil Corporation (IOC) inaugurated its inaugural battery-swapping station in Kolkata for electric vehicles (EV). The oil marketing PSU collaborated with Sun Mobility, affirming its commitment to advancing sustainable electric mobility solutions.
- In August 2023, Adani TotalEnergies E-Mobility Limited (ATEL) disclosed a collaboration with all-electric cab aggregator, Prakriti E-Mobility (Evera), to deploy EV charging infrastructure, starting with a 200-point super hub in Delhi.
- In August 2023, Mahindra & Mahindra anticipates that its forthcoming plant in Chakan, Maharashtra, will reach a peak production capacity of 200,000 electric vehicles annually from 2027 to 2029. They project EVs to constitute 30% of total volumes by 2030.
Government Initiatives
The Government has reaffirmed its commitment towards EVs and its mission for 30% electric mobility by 2030. Budget announced customs duty exemption on the import of capital goods and machinery required for the manufacture of lithium-ion batteries that typically power EVs.
The Indian government launched ambitious plans to add approximately 72,000 new EV chargers by FY26, including around 22,100 fast chargers for cars, reflecting strong policy support for infrastructure development.
The government has sanctioned Rs. 1,062 crore (US$ 120 million) in August 2025 for 85 civil depot and 88 power projects, with Rs. 475 crore (US$ 54 million) already disbursed to nine states/UTs to boost EV accessibility, affordability, and localisation.
In August 2025, NITI Aayog proposed a national EV policy focusing on mandates and disincentives rather than subsidies, targeting 30% EV share of total vehicle sales by 2030 and pilot programs for 100% electrification of buses and freight vehicles. FAME India Phase-II, launched in April 2019 with a budget of Rs. 11,500 crore (US$ 1.31 billion), aims to boost EV adoption, expand electric bus fleets, and develop charging infrastructure.
As of June 30, 2025, the government had supported over 16.29 lakh electric vehicles under FAME II, including 14.35 lakh e-2 wheelers, 1.65 lakh e-3 wheelers, 22,644 e-4 wheelers, and 5,165 electric buses from a sanctioned 6,862 buses. Public charging infrastructure progress showed 8,885 EV public charging stations installed out of 9,332 sanctioned, backed by Rs. 912.5 crore (US$ 103.66 million) allocated for these installations.
Under FAME-II, the Phased Manufacturing Programme (PMP) was launched to boost local production of EVs and their components, with incentives limited to vehicles meeting PMP norms.
A scheme with a budget of Rs. 778 crore (US$ 93.5 million) ran for six months from April 1, 2024, to September 30, 2024. The initiative offered incentives to purchasers of electric two-wheelers (e-2W) and electric three-wheelers (e-3W).
The Scheme supports 3,72,215 EVs, comprising 3,33,387 e-2Ws, and 38,828 e-3Ws (including 13,590 rickshaws & e-carts and 25,238 e-3Ws in L5 category), offering incentives exclusively for advanced battery-equipped vehicles.
The EMPS 2024 scheme has been merged into PM E-DRIVE, retaining similar incentives while focusing on domestic sourcing under the Phased Manufacturing Programme, with benefits extended to startups and MSMEs across states like Tripura.
In June 2025, the Tamil Nadu State Planning Commission unveiled the "Tamil Nadu's Automotive Future" roadmap to position the state as a global EV innovation hub. The plan includes mobility innovation funds for R&D in battery chemistry and advanced EV technologies, along with dedicated R&D zones in Chennai and Coimbatore.
The government increased the PLI allocation for automobiles and auto components to Rs. 3,500 crores (US$ 409 million) in FY25, up from Rs. 604 crores (US$ 70 million) in FY24.
The government has outlined a scheme to transition 800,000 diesel buses to environmentally friendly alternatives, possibly supplanting FAME III. The strategy involves substituting 800,000 diesel buses, comprising over a third of all vehicles on roads, with electric ones within seven years. This endeavour seeks to diminish vehicular emissions and stimulate investments in the national electric vehicle (EV) infrastructure.
The Ministry of Heavy Industries launched the PM E-DRIVE Scheme with Rs. 10,900 crore (US$ 1.28 billion) to boost India's EV ecosystem, promoting electric mobility and reducing fossil fuel reliance.
References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press Releases, Department for Promotion of Industry, and Internal Trade (DPIIT), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 2023-24, EY Parthenon Electrifying Indian Mobility.
Note: Conversion rate used in July 2025, Rs. 1 = US$ 0.012,* - Includes Electric vehicles and auto mobiles, E - Estimated
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