World EV Day Special: India’s EV Report Card 2025

India’s electric mobility journey has accelerated sharply in the past five years. After selling fewer than 100,000 electric vehicles (EVs) in 2020, the country is on track to record over 700,000 EV sales in 2025. While two-wheelers remain the largest segment, passenger cars and three-wheelers have seen remarkable growth, underpinned by government incentives, expanding charging infrastructure, and shifting consumer attitudes.

Sales Trends: From Niche to Mainstream

In 2020, electric two-wheelers accounted for roughly 80,000 of India’s EV sales, while three-wheelers and buses together barely tipped 10,000 units. By 2025, two-wheeler EV sales have surged to over 500,000 units, propelled by Ola Electric and Ather Energy. Three-wheelers now exceed 100,000 units annually, driven by Mahindra Electric and Piaggio. Passenger car EV sales, which stood at under 5,000 in 2020, have climbed past 80,000 in 2025, with Tata Motors leading the charge alongside MG, BYD, Hyundai, and Kia. Luxury brands such as Mercedes-Benz and BMW have added prestige to the market.

EVs now represent approximately 4 per cent of India’s total auto sales in 2025, up from just 0.3 per cent in 2020. 

Charging Infrastructure: Bridging Range Anxiety

In 2020, India had fewer than 2,000 public charging stations, mostly concentrated in metros. Today, the network exceeds 10,000 points of charge nationwide, including over 2,500 fast chargers. Tata Power leads deployment with 3,000 stations, followed by BPCL’s 2,000, Jio-BP’s 1,500, and ChargeZone’s 1,200. Urban coverage now extends to every major city, while highway corridors connecting Delhi–Mumbai and Bengaluru–Chennai boast fast-charging belts every 70–100 kilometres. 

Policy Shifts: Sustained Government Support

The FAME II scheme (2019–2024) disbursed over ₹10,000 crore in subsidies, catalysing fleet electrification and two-wheeler adoption. FAME III, announced in 2024, allocates ₹12,000 crore through 2027, with a stronger focus on passenger cars and buses. Central incentives include GST reduction on EVs from 12% to 5%, as well as lower borrowing rates. More than 20 states now offer road-tax waivers and registration fee discounts up to 15%. The Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries has attracted over ₹18,000 crore in investments, fostering local battery manufacturing. A forthcoming battery recycling policy aims to close the value chain.

Consumer Sentiment: From Scepticism to Enthusiasm

In 2020, range anxiety and long charging times deterred mainstream buyers. Today, most new EVs offer real-world ranges above 300 km and 80 per cent fast-charging within 30 minutes. Running costs have dipped below ₹2/km, compared with over ₹6/km for petrol. Residual values have stabilised at 60–70 per cent after three years, compared with 50 per cent for similar ICE cars. However, concerns remain around charging-station reliability, uneven infrastructure in Tier II/III towns, and high upfront prices. 

Global Context: Catching Up—but the Race Continues

China leads with EVs comprising over 25 per cent of auto sales in 2025, while Europe averages 18 per cent and the US around 12 per cent. India’s 4 per cent share trails these markets but marks a fourteen-fold increase since 2020. In absolute numbers, India still ranks behind the top five global markets but is closing the gap rapidly thanks to strong two-wheeler volumes and aggressive policy support. But Puneet Gupta, Director, S&P Global Mobility had a different perspective on the acceptability of EVs. Speaking exclusively with Acko Drive, he said, “When a consumer starts seeing EVs on the road, his confidence in electric vehicles goes up. When consumers get first hand feedback from colleagues or friends, their confidence in buying EVs also goes up. That's a global trend.” 

Outlook: Opportunities and Challenges to 2030

India’s EV market is poised to exceed 5 million annual sales by 2030, driven by mass-market passenger cars, electrified commercial fleets, and battery innovation. The growth of EV sales has been consistently reaching the 4 per cent mark and market analysts like Puneet Gupta also say that “If this trend continues, sales are likely to double and of course government measures will give OEMs confidence as well to bring in more products.” According to S&P Global Mobility EV penetration will be about 18 per cent by 2030. 

Key challenges include scaling charging infrastructure in smaller cities, lowering battery costs, and securing critical minerals. With ongoing policy backing and growing consumer acceptance, India’s EV revolution appears firmly on track—yet its ultimate success will hinge on delivering a seamless charging ecosystem and making EV ownership truly affordable for the masses.