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Jeet B Bhayani (SEBI RA)

13th Jan · SEBI-Registered Analyst

India’s electric vehicle sector achieved a notable landmark in 2025, with overall EV sales reaching 23 lakh units (2.3 million) and representing 8% of all new vehicle registrations, according to data from the Vahan Portal. These statistics show that the adoption of EVs is rapidly increasing in important areas of the automotive industry, aided by the combined impacts favourable government policies, incentives for demand, and supply-side measures enacted in recent years. The greater availability of models at different price levels, along with continuous enhancements in charging infrastructure, has boosted consumer confidence in electric mobility. The rising concern among consumers about environmental sustainability and the escalating fuel costs has led to greater acceptance of EVs by both individual buyers and fleet operators. Due to these factors, India's EV ecosystem seems to be transitioning from the early adoption stage to widespread market penetration. Sales of electric two-wheelers make up the largest portion of electric vehicle sales in India (approximately 12.80 crore), constituting 57% of all electric vehicles registered by the end of 2018. In contrast, there were 8.00 lakh electric three-wheelers, accounting for around 35% of overall electric vehicle sales. Furthermore, more than 175,000 electric four-wheelers (light-duty passenger cars and light-duty commercial vehicles) were registered in 2018, indicating the shift towards electrification throughout various vehicle types in India. The leading states for electric vehicle registrations in India were Uttar Pradesh, Maharashtra, and Karnataka. Sales of electric vehicles in India have surged in recent years, bolstering the country's initiatives to establish sustainable transportation, in line with its objectives for energy and environmental transformation.

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