India's EV Market Hits 2.3M Sales in 2025, Driven by Policy & Festive Demand

The report released this week highlighted that EV adoption accelerated steadily through the year, supported by policy incentives and a sharp festive-led surge in the final quarter.

India's broader automobile market recorded 28.2 million vehicle registrations in 2025, with two-wheelers remaining dominant, accounting for over 20 million units (72 per cent of total sales).

Passenger four-wheelers crossed 4.4 million units, while tractors and agricultural vehicles exceeded 1.06 million units, reflecting broadly stable demand across segments. The report noted that overall vehicle sales growth remained broadly stable across Q1-Q3, followed by a festive-led acceleration in Q4, aided by GST benefits and year-end consumer demand.

Electric two-wheelers continued to anchor EV adoption, with 1.28 million units sold, representing 57 per cent of total EV sales.

Electric three-wheelers (L3 and L5 combined) followed with 0.8 million units, or 35 per cent share, while electric four-wheelers recorded 1.75 lakh units.

In electric four-wheelers, the report noted "strong momentum in electric goods carriers, particularly in small and light commercial vehicle segments," indicating early progress in electrification in logistics applications.

Among states, Uttar Pradesh emerged as India's largest EV market in 2025, with more than 4 lakh EV units sold, accounting for 18 per cent of total EV sales.

Maharashtra accounted for 2.66 lakh units (12 per cent), and Karnataka for 2 lakh units (9 per cent), together accounting for over 40 per cent of national EV volumes.

Despite lower absolute vehicle sales, states such as Delhi (14 per cent), Kerala (12 per cent), and Goa (11 per cent) recorded higher EV-to-ICE ratios.

The report also notes that Tripura (18 per cent) and Assam (14 per cent) recorded robust EV-to-ICE ratios in 2025.

The IESA report stated that the government determined the electric three-wheeler segment had reached a sufficient level of market maturity and penetration (around 32 per cent).

A major policy development during the year was the conclusion of India's largest-ever electric bus tender.

Convergence Energy Services Limited (CESL) announced the successful completion of a 10,900 electric bus tender under the Rs 10,900 crore PM E-DRIVE scheme, aimed at accelerating green public transport.

The report implied that while EV penetration remained strongest in light vehicle segments, government focus on electrifying heavy commercial vehicles, supported by dedicated charging infrastructure development, continued to strengthen the long-term electrification roadmap, positioning India's EV ecosystem for sustained growth beyond 2025.

- ANI