India's electric car market is still in its early stages, accounting for less than 3% of the total passenger vehicles (PVs) sold in the country. However, with an increasing number of models set to launch and both government and private players expanding the charging infrastructure, electric vehicle (EV) sales are expected to see a significant boost, with projections indicating that they could double in 2025.
According to data from the Federation of Automobile Dealers Associations (FADA), electric car sales in India witnessed a 19.93% growth, reaching 99,165 units in 2024 compared to 82,688 units in 2023. Despite this growth, EVs contributed only 2.4% to the overall passenger vehicle sales in 2024, up from 2.13% in 2023. One of the major reasons for the relatively slow adoption of EVs has been the limited availability of models, with only a handful of manufacturers such as Tata Motors and JSW MG Motor India offering electric options. Tata Motors has been leading the charge with models like the Tiago.ev, Tigor.ev, Punch.ev, Nexon.ev, and Curvv.ev, while JSW MG Motor India has been selling the Comet, Windsor, and ZS EVs. However, several major automakers such as Maruti Suzuki, Hyundai, Mahindra & Mahindra, and Kia had yet to introduce their volume-driven EVs—until now.
The landscape is changing rapidly in 2025, with several key launches set to transform the market. Maruti Suzuki is preparing to launch the highly anticipated e Vitara, Hyundai has already introduced the Creta Electric, and Mahindra is gearing up to open bookings for its born-electric vehicles (BEVs), including the BE 6 and XEV 9e. Additionally, Kia is expected to launch an EV version of its popular Carens MPV, while MG is bringing new models such as the M9 and the Cyberster. The influx of new electric models is expected to significantly boost sales, potentially doubling the number of EVs sold in 2025 compared to the previous year.
Maruti Suzuki’s Managing Director and CEO, Hisashi Takeuchi, recently stated that the company is aiming to become India's largest EV manufacturer within a year, with the e Vitara playing a crucial role in achieving this goal. The e Vitara will be produced at Maruti's Gujarat plant, which currently has an annual production capacity of 7,50,000 units across three manufacturing lines. A fourth line is now under construction, dedicated entirely to EV production.
Hyundai's Whole-Time Director and Chief Operating Officer, Tarun Garg, also expressed optimism about the future of EV sales, stating that the launch of the Creta Electric, along with the entry of other major automakers into the segment and the rapid development of charging infrastructure, could serve as a major trigger for the widespread adoption of EVs in India.
One of the biggest challenges facing the EV industry has been the high cost of batteries, which account for approximately 35-40% of an electric vehicle’s total cost. To address this issue, the Indian government has been aggressively promoting local manufacturing of lithium-ion batteries by removing Basic Customs Duty (BCD) on critical minerals and capital goods used in their production. Finance Minister Nirmala Sitharaman highlighted these efforts during her Union Budget 2025-26 speech, noting that BCD exemptions had been granted for 25 critical minerals that are not available domestically, along with reductions for two other minerals to boost domestic processing.
Additionally, Sitharaman announced further exemptions on key materials used in EV battery manufacturing, including cobalt powder, lithium-ion battery waste, lead, zinc, and 12 other critical minerals. She also proposed adding 35 capital goods to the exemption list for EV battery manufacturing and 28 capital goods for mobile phone battery production. These measures are expected to lower EV costs in the long run by promoting the domestic production of lithium-ion batteries and reducing dependency on imports.
While local battery production will help the industry in the long term, the immediate challenge remains the expansion of India’s EV charging network. Recognizing this, the government has allocated ₹2,000 crore for expanding public charging infrastructure under the newly introduced PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. The scheme aims to install 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses, and 48,400 fast chargers for electric two-wheelers and three-wheelers, with a focus on cities with high EV penetration and select highways.
Automakers are also taking proactive steps to address charging concerns. Maruti Suzuki, for instance, will provide smart home chargers with installation support for e Vitara buyers, along with a fast-charging network in the top 100 cities in India. In the initial phase (the first 2-3 years), the company plans to set up Maruti-branded charging points every 5 to 10 km in these cities. Additionally, Maruti is establishing 1,500 EV-enabled service workshops covering over 1,000 cities to ensure after-sales support for its electric vehicles.
Hyundai, on the other hand, is giving all EV users—both Hyundai and non-Hyundai customers—access to 10,000 charging points through its myHyundai app. The company has already installed 50 DC fast chargers and plans to increase this number to 600 by 2032.
With an expanding portfolio of EVs, significant investments in local battery production, and the rapid expansion of charging infrastructure, India’s electric vehicle market is on the brink of a major transformation. If current projections hold, 2025 could mark a turning point for EV adoption in the country, potentially leading to an era where electric cars become mainstream rather than a niche segment.
