EV SALES SURGE ON BACK OF GOVERNMENT PUSH

In view of the wave of new models and aggressive marketing by major carmakers like

, , and , the penetration of Electric Vehicles (EV) in the Indian market has increased from 2.2% in CY24 to 4.4% in May25. This is primarily due to new launches, more EV offerings from other OEMs, and the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme. The rise in penetration is a testament to growing consumer confidence, government policy clarity, and the development of charging infrastructure driven by a wave of new models. Another factor is the steep disparity in taxes. While EVs attract just 5% GST, hybrids models bear an overall rate of 43%. On the other hand, market penetration of hybrids vehicles remain stuck between 2% and 2.5%. Automakers beleive that despite the benefits of hybrid technology, a lack of government backing and few launches have kept the segment from gaining ground. In fact hybrid vehicle penetration rose from about 2% the year 2023 to just 2.5% so far in 2025. The strong hybrid segment is dominated by three manufacturers - Toyota Motors, , and Honda India. Between Electric Vehicles and Hybrid Vehicles, what truly counts is the relative penetration of different powertrains, and in that race, Electric Vehicles are gaining ground, one launch at a time.