India’s EV Market Mid-2025: Key Trends in Sales, New Launches & Policy Shifts

The year 2025 is proving to be a watershed moment for electric vehicles (EVs) in India. In just the first half of the year, we’ve seen record-breaking EV sales, a flurry of new model launches, and pivotal policy changes that are reshaping the industry. From personal electric cars and bikes gaining popularity to fleet operators electrifying their vehicles, the momentum is undeniable.

In this article, we’ll analyze the latest EV market trends in India – backed by data from the past quarter – and discuss what’s driving these changes. Whether you’re an EV buyer excited about new choices, a fleet operator eyeing cost benefits, or a policy-maker gauging the impact of incentives, these insights will help you navigate the fast-evolving landscape of electric mobility in India.

(All insights are drawn from recent reports, industry data, and EVIndia’s own analytics from the last 3 months to ensure you get the most up-to-date picture.)

Surge in EV Sales and Adoption Rates

Electric vehicle adoption in India has accelerated significantly in 2025. Let’s look at some numbers:

• Record EV Sales: India’s EV market crossed a milestone with 1.96 million EVs registered in fiscal year 2024-25, a 17% jump over the previous year. The growth is broad-based across vehicle segments:

  • Electric Two-Wheelers (e2W): The e2W segment led the charge with 1.14 million units sold in FY25, up 21.1% year-on-year. April 2025 alone saw nearly 91,791 electric two-wheelers sold – the best-ever April on record, marking ~40% YoY growth. This surge is driven by high demand for e-scooters and e-bikes as affordable commuting options. Everyday consumers and gig-delivery fleets alike are opting for electric scooters due to low running costs.

  • Electric Cars (Passenger EVs): EV cars are seeing even faster growth in percentage terms. In May 2025, electric car sales were up 52% year-on-year, reaching ~12,197 units that month. For the full FY25, 106,000 electric cars/SUVs were registered, up from 91k the previous year. While EVs still accounted for only ~2.5% of total car sales in 2024, that share is quickly rising – by May 2025, EVs made up about 4% of monthly car salesackodrive.com. The industry is hopeful to hit 10% in the next couple of years.

  • Electric Three-Wheelers (e3W): Nearly 0.7 million e-rickshaws and electric three-wheelers were sold in FY25 (10% growth), reflecting how electrification is taking off in last-mile transport and commercial fleet usage (think e-rickshaws, cargo three-wheelers in cities).

• Market Leaders and Challengers: The electric passenger vehicle market is witnessing a fierce competition among manufacturers:

  • Tata Motors has been the early EV leader (with models like Nexon EV, Tiago EV). However, its dominance is being challenged in 2025. Tata’s EV market share in May 2025 stood at 35.4% (4,319 cars sold that month) – down from ~66% a year prior. Tata’s EV sales actually dipped ~19% YoY, indicating competition eating into its pie autocarindia.com.

  • MG Motor India has surged to a close second place. In May 2025, MG sold 3,732 EVs (largely thanks to the popular MG ZS EV SUV and the new tiny Comet EV city car), capturing 30.6% share. MG’s EV sales grew a whopping +147% YoY. Notably, MG even introduced a larger battery variant of the ZS EV to offer more range, boosting its appeal.

  • Mahindra & Mahindra – long a diesel SUV stalwart – has rapidly scaled up EV sales. Mahindra sold 2,604 EVs in May (21.3% market share), an incredible 338% increase from just 594 units a year ago. This jump is thanks to its new electric SUV offerings like the XUV400 and the beginning of its Born Electric (BE) series rollout. Mahindra’s growth indicates legacy OEMs aggressively pivoting to EVs.

  • Together, Tata, MG, and Mahindra commanded 87.3% of India’s EV car market in May 2025. Clearly, the top players are in a tight race now, compared to Tata’s near-monopoly before. This competition is great news for consumers – it means more choices and competitive pricing.

• Fleet and Commercial Adoption: Beyond personal vehicles, fleet operators are embracing EVs. Electric two-wheelers are increasingly used by food delivery and e-commerce companies (thanks to lower operating cost per km). Electric three-wheelers are now a common sight for last-mile connectivity in cities. Even corporate and government fleets are slowly adding EVs. (Out of ~847,000 government vehicles in use, only ~5,384 were EV as of 2022 – <1% reuters.com – so the opportunity to convert government fleets is huge and some agencies have set EV procurement mandates.)

In summary, EV adoption in India is at its highest trajectory yet. We’re seeing strong double-digit or even triple-digit growth across categories. Importantly, this momentum is not just hype – it’s backed by consumer acceptance, better products, and improving economics. The classic barriers (limited range, high upfront cost) are slowly easing, as evidenced by more people taking the EV plunge than ever before.

Wave of New EV Launches: From Two-Wheelers to SUVs

One big driver behind the sales surge is the barrage of new EV models hitting the market. Established automotive OEMs and startups alike have been launching or unveiling electric vehicles in every segment, giving buyers fresh options. Here are some highlights of what’s new and upcoming in mid-2025:

• Electric Two-Wheelers: The past quarter saw major two-wheeler makers expanding their EV lineup:

  • Ola Electric (the e-scooter market leader) launched its Gen-3 S1 series with multiple battery options (2 kWh, 3 kWh, 5 kWh) to cater to different price points. Ola’s introduction of a cheaper 2 kWh variant (S1 X) right after subsidy cuts was viewed as a “genius move” to keep prices attractiveevindia.online. By offering an ~₹74k scooter with ~100 km rangefinancialexpress.com, Ola is targeting the budget-conscious mass market while still offering larger battery versions for those needing more range. (This was also a strategic response to the subsidy reduction – more on that in the policy section.)

  • Hero MotoCorp entered the fray with its Vida V1 electric scooter (premium segment) and is rumored to be working on mass-market models. Meanwhile, Hero Electric (unrelated company) continues to sell high volumes of its simple city scooters and is upgrading models with better batteries.

  • TVS expanded its iQube lineup and is working on higher-range versions and perhaps an electric motorbike. TVS’s iQube, especially the entry variant around ₹94k, is one of the top e-scooters under ₹1 lakhfinancialexpress.com.

  • New Startups and Models: Startups like Ather Energy launched updates (e.g., Ather 450X Gen3), Simple Energy finally began deliveries of the long-range Simple One, and Ultraviolette Automotive launched the Ultraviolette Tesseract in early 2025 – a high-performance electric bike boasting 261 km range from a 6 kWh batteryfinancialexpress.com. Even niche players like Wings EV are making news by unveiling innovative concepts (Wings EV recently showcased what they call India’s first electric micro-car – a tiny two-seater quadricycle aimed for city mobility). (See our news coverage on Wings EV’s micro-car for details on this interesting development.)

  • Low-Speed & Affordable Segments: A notable trend is many manufacturers trying to crack the truly affordable segment. For instance, brands like Komaki and Yulu are offering electric two-wheelers in the ₹40k–₹60k range (with lower speeds and range). The public’s enthusiastic response to rumors of ultra-cheap EVs (like the Patanjali scooter story) has signaled to OEMs that there is enormous demand at the low end if they can meet it. Don’t be surprised if in the next year or two we see a reputable company launch a reliable electric moped or scooter around the ₹50k price point – the first to do so will capture a massive market of petrol-to-EV switchers.

• Electric Cars (Four-Wheelers): 2025 is a blockbuster year for EV car launches in India, particularly in the SUV segment:

  • Tata Motors: Tata has been teasing and finally rolling out new models. The big one is the Tata Harrier EV, an all-electric mid-size SUV, expected to launch by July 2025cardekho.com. With an estimated price around ₹21.5 lakh and advanced features, the Harrier EV will be Tata’s flagship EV, competing with the likes of MG’s ZS EV and Mahindra’s upcoming models. Tata is also working on the Sierra EV (a rebirth of the iconic Sierra) likely for 2026autocarindia.com. These launches are critical for Tata to maintain its EV leadautocarindia.com as its early movers (Nexon EV, Tiago EV) face new challengers.

  • Mahindra & Mahindra: Mahindra had long delayed its EV launches, but now is coming out full guns. They officially unveiled the BE (Born Electric) series – e.g., Mahindra BE.05 and BE.07 concepts, and in late 2024 they launched the XUV.e8 / XUV 9E (the electric XUV700 derivative) and BE 6e. In fact, the Mahindra BE 6e electric SUV was launched in Nov 2024reuters.com, and by mid-2025 Mahindra ramped up production. An upcoming Mahindra XEV 4e (likely the electric XUV300 compact SUV) is also expected around July 2025cardekho.com priced ~₹13 lakh – aiming squarely at the mass market. Mahindra’s aggressive rollout led to its huge YoY sales jumpautocarindia.com. They’ve also been showcasing high-performance concepts (the Mahindra XUV Aero EV concept, etc.) indicating broader plans.

  • MG Motor: MG has diversified its EV portfolio. The MG Comet EV, a mini 2-door city car launched in mid-2023 at an attractive ₹7.6 lakh, is finding sweet spot among urban youth and fleet operators (like car-sharing). MG also has the MG4 EV hatchback in the pipeline (codenamed internally – possibly the “Windsor” mentioned in reportsautocarindia.com). Additionally, MG is set to bring futuristic models like the MG Cyberster, an electric roadster (expected late 2025, albeit at a luxury price ~₹80 lakh)cardekho.com – showing EVs are coming even to sports car segments.

  • Hyundai and Kia: Hyundai already launched the premium Ioniq 5 in 2023 and is rumored to bring the Kona EV facelift. Kia is making headlines with an India-specific EV – the Kia Carens Clavis EV (an electrified version of the Carens MPV), expected June 2025 around ₹16 lakhcardekho.com. This is notable as it targets the family MPV segment with EV, potentially a first. Kia’s offering will join the fray of mid-range family EVs, expanding choices for consumers beyond just SUVs.

  • Luxury and Others: Luxury carmakers aren’t behind either – Mercedes launched the EQB and EQS in India, BMW brought the iX and i4, and more are coming as demand for high-end EVs grows among the affluent. Also, global EV giants like Tesla are back in talks with the Indian government – as of mid-2025, Tesla has rekindled discussions about setting up a factory in India (with proposals for a $24k car tailored for India). If that materializes, it could be a game-changer in a couple of years.

Overall, the lineup of new EVs in 2025 is the widest India has ever seen. From a sub-₹8 lakh micro EV (MG Comet) to ₹10–15 lakh family cars (Tata’s upcoming Punch EV, Citroën eC3 already in market, Mahindra XEV4e) to ₹20–30 lakh SUVs (Harrier EV, MG ZS, Hyundai Kona) and high-end luxury models – there’s an EV option in almost every price bracket now. This breadth of choice is crucial: it means more consumers find an EV that fits their needs, which in turn fuels adoption.

Policy Changes & Government Incentives: A Mixed Bag

No discussion on EV trends is complete without the policy environment, which in India has seen significant changes in 2025. Government incentives (or lack thereof) can make or break EV economics for buyers and manufacturers. Here are the key policy shifts recently:

• Phasing Down of Subsidies (FAME to PM e-Drive): The Indian government’s flagship subsidy program, FAME-II, was tapered in 2023, and a new scheme called PM e-DRIVE was introduced for electric two-wheelers. As of April 1, 2025, the central subsidy on e-two-wheelers was slashed by 50% – from ₹10,000 to ₹5,000 per vehicleevindia.online. This effectively raised prices for many popular scooters by several thousand rupees overnight. The change was communicated in advance, leading to a rush of buyers in Jan–Mar 2025 to avail the higher subsidy before the March 31 deadline. (We at EVIndia even published a “last chance” alert blog in March, urging consumers to buy before prices went up – and indeed April saw price hikes from many brands.) Manufacturers also rolled out fire-sale discounts and schemes in March – for instance, Ola Electric offered special pricing that combined remaining subsidy + company discount to retain customersevindia.online.

  After April, with subsidy halved, some OEMs adjusted strategy: Ola trimmed features and cost on the new S1X to keep an attractive starting price (as discussed), while others like Ather and TVS introduced low-range variants to qualify for subsidy caps. The subsidy cut was a double-edged sword: it strained EV startups’ finances (Ola, for example, cited subsidy cuts as impacting their Q1 2025 salesusnews.com), but it’s nudging the market to become self-sustaining and cost-efficient. The government’s rationale was to gradually reduce subsidy burden and invest in local manufacturing (through PLI schemes for batteries, etc., instead).

• State-Level Incentives: Many state governments have their own incentives – ranging from road tax and registration fee exemptions to additional subsidies for EVs. For example, Maharashtra, Gujarat, Delhi, etc., have offered state subsidies in past years (some of which expired or evolved by 2025). In 2025, some states shifted focus to incentivizing charging infrastructure and fleet adoption (like permits for e-autos, mandate for delivery fleets to go electric by certain dates, etc.). If you’re a fleet operator, it’s worth checking your state’s EV policy – e.g., Delhi offers scrappage incentives and interest subvention for e-commercial vehicles, and Karnataka provides tariff concessions for EV charging. These can significantly improve the total cost of ownership for EVs in commercial use. Policy-makers are increasingly tailoring incentives to high-impact areas like public transport and freight, not just private buyers.

• GST and Tax Benefits: The GST on EVs remains at 5% (vs 28% on ICE two-wheelers), which is a big price advantage. Additionally, the government continues the income tax deduction (Section 80EEB) on interest paid for EV purchase loans (up to ₹1.5 lakh deduction). These fiscal incentives make EVs financially attractive, especially for personal car buyers taking loans.

• Push for Local Manufacturing: The Production-Linked Incentive (PLI) schemes for ACC Battery Storage and for Auto/EV components are in full swing. Companies are being incentivized to produce batteries and EV parts locally, which should bring down costs long-term. For instance, Tata, Reliance, Hyundai, and others have committed investments in cell manufacturing in India. Policy-makers see this as key to reducing import dependency and further cutting EV prices in future.

• EV vs Hybrid Debate in Policy: An interesting development in 2025 has been the policy tug-of-war between EV purists and hybrid vehicle proponents. In May 2025, Indian EV makers (Tata, Mahindra, etc.) urged the government to avoid promoting strong hybrids in official fleets and policies, arguing it would dilute the focus on pure EVsreuters.com. Auto giants like Toyota and Maruti are lobbying for hybrids to count toward electrification goals, but EV-focused companies point out that government incentives currently favor only full EVs (e.g., hybrids don’t get FAME benefits) and mixing signals could confuse consumers and investorsreuters.com. The government’s stance so far aligns with supporting battery EVs strongly (for instance, only EVs qualified in the government’s recent tender for official cars). However, how this plays out could affect the market – if hybrids were incentivized, it might slow pure EV adoption. As of mid-2025, the policy clarity is improving: stakeholders expect a continued push for EV infrastructure and maybe targeted incentives for buses, trucks, where electrification is in nascent stage.

• Charging Infrastructure and Other Policies: The government has set targets for installing more public charging stations, including a plan to have charging points at every certain km on highways. Incentives (like land allotment and subsidies) are given to companies setting up charging networks. Also, new building codes in many cities mandate EV charging provisions in apartments and offices. For fleet operators, policies allowing swapping infrastructure (for e-three-wheelers, e-bikes) are evolving. In short, the ecosystem support is gradually catching up, which is critical for sustained EV growth. Policy-makers are also working on regulations for battery recycling and safety norms (especially after some e-scooter fire incidents in 2022–23, safety standards were tightened).

Emerging Trends for Buyers, Fleet Operators, and Policy-Makers

With the confluence of booming sales, many new launches, and shifting policies, a few bigger-picture trends emerge that matter to different stakeholders:

• For Individual Buyers: It’s a buyer’s market in the EV world now. Consumers have more choices than ever – including affordable ones. The cost of entry for a decent electric scooter has come down (with models in the ₹70-80k range offering ~100 km range), and the variety in electric cars means you’re not limited to one or two models. Importantly, cost of ownership for EVs is now well below ICE vehicles for many use cases. Even though some subsidies have reduced, running costs (as low as ₹0.5-₹1 per km for electricity vs ₹4-₹5 per km for petrol) and lower maintenance make EVs economically sensible in the long run. Many early adopters – including those who found our site searching for “best EV” – are now repeat buyers or upgrading to newer EV models, indicating satisfaction. One caution: do factor in charging access. If you have a charging point at home or work, an EV is a no-brainer. If not, the growing public network is helping, but plan accordingly (e.g., choose models with sufficient range for your needs).

• For Fleet Operators & Businesses: The narrative is shifting from “Should we adopt EVs?” to “How fast can we adopt EVs?”. Operational cost savings are compelling – e.g., an e-commerce delivery fleet can save lakhs of rupees on fuel annually by switching to electric two-wheelers. Many logistics companies and ride-hailing firms (Ola, Uber) have announced targets to electrify significant portions of their fleet by 2025–2027. There are challenges – like the need for dependable charging/swapping infra and managing higher upfront costs – but even banks and leasing companies are coming forward with financing solutions for fleet EVs. Policy incentives like priority permits for electric autos and financial schemes for commercial EV loans are icing on the cake. If you manage a fleet, 2025 is a good time to pilot EVs if you haven’t – the variety of commercial EV models (from e-vans, e-trucks to electric delivery bikes) has expanded and case studies show positive ROI in a few years due to fuel savings.

• For Policy-Makers: The rapid uptick in EV adoption is encouraging, but it also means policies must stay adaptive. The recent subsidy recalibration shows a move toward sustainable incentives – supporting demand where needed but also pushing local manufacturing. One key area policy-makers need to address is charging infrastructure rollout pace – the demand for chargers is likely to jump as EV numbers grow, and private sector alone may not fill all gaps quickly. Government initiatives to install chargers on highways and in cities (via public-private partnerships) should continue aggressively to avoid a bottleneck. Additionally, ensuring quality and safety (to prevent incidents like thermal runaway fires) through standards is crucial – a point that might entail new regulations for battery quality, certification of EV OEMs, etc. Lastly, grid readiness and renewable integration will be a focus: as EVs proliferate, the electricity grid needs upgrades and it’s a golden opportunity to pair EV charging with solar and other renewables (some states are giving discounts on tariffs for daytime charging when solar surplus is available, etc.). Policy folks can also look at innovative ideas like battery swapping standards, EV recycling rules (to handle batteries at end-of-life), and continuous consumer awareness programs to keep the EV momentum strong.

Conclusion

At mid-2025, India’s EV revolution is in full swing, transitioning from early adopter phase to mass adoption. The past 3-4 months alone have demonstrated that EVs are not just the future – they are the present. We have:

• Robust sales growth across two-wheelers and cars, indicating strong market acceptance.

• A cascade of new launches – from ultra-budget e-scooters to high-end electric SUVs – providing more choice, better tech, and catering to varied consumer needs.

• Evolving policies that, despite some speed bumps like subsidy cuts, broadly support the electrification journey through tax benefits, infrastructure investment, and Make-in-India initiatives.

For readers – whether you’re considering buying an EV, managing a business fleet, or involved in the EV industry – the key takeaway is to stay informed and leverage these trends. Prices of some EVs might inch up as subsidies wane, but the overall value proposition of EVs is improving with each passing quarter (thanks to technological advancements and scale). Early movers are reaping benefits: consumers enjoy low running costs and a superior driving experience, businesses achieve operational savings and ESG goals, and the nation benefits via reduced oil imports and pollution.

At EVIndia, our analysis of both market data and our own site’s traffic shows where interest is high: people are searching for information on new models (e.g., Tata Harrier EV, Kia EV launches), on policy changes (subsidy updates), and on practical aspects like charging and battery life. We will continue to create content around these high-demand topics – bridging content gaps such as explaining policy nuances or comparing new EVs – to help our readers make informed decisions.

The remainder of 2025 promises even more excitement: upcoming launches (we’re looking at you, Sierra EV and Kia EV), possible entrance of global players, and hopefully further improvements in charging infrastructure. If the current trajectory continues, by end of 2025 we could see EVs forming a significant chunk of vehicle sales in major cities, and a second-hand EV market picking up as early owners upgrade to newer models.

In conclusion, India’s EV market trends point to an unstoppable shift. The mix of consumer enthusiasm, corporate investment, and government support is creating a virtuous cycle propelling electric mobility forward. The challenges – range anxiety, charging network, upfront cost – are gradually being overcome. For a country that once wondered if EVs could ever succeed here, 2025 is proving that not only can they succeed, but they can thrive and transform the automotive landscape.

Keep an eye on these trends, take advantage of the new offerings and schemes, and join the electric revolution in whichever capacity you can. The road ahead is electric, and it’s charging ahead at full speed!

External References & Sources: Recent industry reports and news have underpinned these insights. For instance, Autocar India’s analysis of May 2025 sales provided competitive breakdownsautocarindia.com, Reuters highlighted the policy lobbying by EV makersreuters.com, and official registration data was summarized by GreentechLead (1.96 million EVs in FY25). These, along with EVIndia’s analytics and other cited sources throughout, give confidence that the trends described are factual and current. We’ll continue monitoring developments closely – so stay tuned to EVIndia for the latest updates on India’s EV ecosystem.