Maharashtra Dominates EV Sales! 40% of India’s Record 91K Electric Cars in 2025 Come from Just 3 States

India’s electric passenger vehicle (e-PV) market is on fire! Between January and July 2025, a record-breaking 91,110 electric cars, SUVs, and MPVs hit the roads — a massive 60% YoY growth over the same period last year. And here’s the kicker: Maharashtra, Karnataka, and Kerala alone account for 40% of these sales, cementing their status as India’s EV powerhouses.

Top 3 States Driving EV Demand:

• Maharashtra: 15,873 units (17% market share, 95% YoY growth) – The undisputed No. 1, driven by strong demand for Tata Nexon EV and Punch EV.

• Karnataka: 10,621 units (12% share, up 39%) – Bengaluru’s tech-savvy crowd fueling sales of MG ZS EV and Mahindra XUV400.

• Kerala: 10,148 units (11% share, up 52%) – A surprising EV adoption wave in a traditionally ICE-dominated market.
  
  

The sales surge comes on the back of new model launches, attractive financing options, and government subsidies. July 2025 was the strongest month yet, clocking 15,799 units — marking four straight months above the 13,000-unit mark.

Rare Earth Shortage – The Elephant in the Showroom

While demand is booming, there’s a looming risk: rare earth magnet supply disruptions from China due to geopolitical tensions. These magnets are critical for EV motors, power steering systems, and even LED displays. If supply tightens in the coming months, production could slow — potentially delaying the industry’s march toward a projected 150,000+ units by year-end.

Regional Market Breakdown

• South India (31% share) – Karnataka, Kerala, and Tamil Nadu remain EV adoption leaders, though slightly down from 33% last year.

• North India (26% share) – Delhi, Uttar Pradesh (up 106% YoY!), Rajasthan, and Haryana show accelerating interest.

• West India (23% share) – Maharashtra and Gujarat gaining ground, thanks to robust infrastructure growth.

• East India (4% share) – West Bengal emerging as an EV-ready state.
  
  

The Battle of the Big 3 – Tata, MG & Mahindra

With demand concentrated in these high-growth states, Tata Motors, JSW MG Motor India, and Mahindra & Mahindra are locked in a fierce fight for market share. Expect aggressive festive season campaigns, model upgrades, and financing offers as these OEMs look to dominate sales charts while rivals struggle with raw material constraints.

Outlook: Full Charge Ahead

If the rare earth shortage doesn’t derail production, India is on track for its biggest-ever EV sales year, with the magic 1.5 lakh units well within reach. Maharashtra’s stronghold is unlikely to be broken soon, but watch out for Uttar Pradesh and Tamil Nadu — both showing triple-digit or near-triple-digit growth.

EVINDIA Take:

India’s EV boom is no longer a metro-centric trend — it’s a nationwide shift. But the next five months will test OEMs’ ability to keep supply in sync with this roaring demand.