India's EV Market Surges: 2.3 Million Sales in 2025, Policy Drives Growth
Overview
India's electric vehicle market hit 2.3 million sales in 2025, representing 8% of new vehicle registrations. Policy support and strong festive demand fueled adoption, led by electric two-wheelers and three-wheelers. Uttar Pradesh, Maharashtra, and Karnataka emerged as top EV markets. A major electric bus tender signals government commitment to green public transport.
India EV Market Surpasses 2.3 Million Sales in 2025
India's electric vehicle sector achieved a significant milestone in 2025, with annual sales reaching 2.3 million units. This surge represents 8% of all new vehicle registrations for the year, according to a new report from the India Energy Storage Alliance (IESA). The adoption curve steepened considerably, driven by sustained policy incentives and a robust festive season demand in the latter part of the year.
EV Sales Milestone Achieved
The broader Indian automobile market registered 28.2 million vehicle sales in 2025. Two-wheelers continued their reign, dominating with over 20 million units sold, or 72% of the total volume. Passenger four-wheelers saw sales exceed 4.4 million units, while tractors and agricultural vehicles recorded over 1.06 million units. Overall sales growth remained steady for the first three quarters before a pronounced acceleration in the fourth quarter, partly attributed to Goods and Services Tax (GST) benefits and year-end purchasing trends.
Segment Performance and State Leaders
Electric two-wheelers spearheaded the EV charge, accounting for 1.28 million units sold, comprising 57% of the total EV market. Electric three-wheelers followed closely, with 0.8 million units sold, securing a 35% market share. Electric four-wheelers posted sales of 1.75 lakh units. The report highlighted notable growth in electric goods carriers within the light commercial vehicle segment, signaling an early trend in logistics electrification.
Uttar Pradesh emerged as the largest EV market in 2025, registering over 4 lakh EV units sold, equivalent to an 18% share of the national EV sales. Maharashtra contributed 2.66 lakh units (12% share), and Karnataka added 2 lakh units (9% share). Together, these three states accounted for more than 40% of India's total EV volumes. States like Delhi, Kerala, and Goa, despite lower overall sales volumes, exhibited higher electric-to-internal combustion engine (EV-to-ICE) ratios, indicating stronger penetration in specific geographies.
Policy Initiatives Drive Public Transport
A key policy development during the year was the conclusion of India's largest-ever electric bus tender. Convergence Energy Services Limited (CESL) successfully finalized a tender for 10,900 electric buses, part of the Rs 10,900 crore PM E-DRIVE scheme designed to accelerate the adoption of green public transportation.
The IESA report suggests that while the EV penetration is currently strongest in light vehicle segments, government initiatives aimed at electrifying heavy commercial vehicles, coupled with ongoing charging infrastructure development, are solidifying the long-term electrification roadmap. This strategic focus positions India's EV ecosystem for sustained expansion beyond 2025.
