India's EV Sales Surge, Nearly Doubling Market Share Amidst New Model Launches and Charging Infrastructure Expansion
Key Insights
India's electric vehicle sales have significantly accelerated, nearly doubling their market share in new car sales during the first five months of 2025.
New EV models with extended ranges, increased charging infrastructure, and reduced price differentials are driving this robust demand.
Automakers like Tata Motors and Hyundai are expanding their EV portfolios, projecting electric vehicles to comprise a substantial portion of future sales.
Industry experts anticipate annual EV sales in India to exceed half a million units by the end of the decade, reflecting strong customer adoption.
New Delhi, India – India's electric vehicle (EV) market has experienced a significant surge in the first five months of 2025, with EVs nearly doubling their share of new car sales. This rapid expansion, driven by a robust pipeline of new models from major automakers including Tata Motors, Mahindra & Mahindra, MG Motor, and Hyundai, marks a strong rebound after a period of slower growth. Industry data reveals that EVs constituted 4.4% of new car sales in May and 3.7% for the January-May period, a substantial increase from 2.5% in 2024 and 2.2% in 2023, underscoring a pivotal shift in consumer preference and market dynamics.
Automotive industry analysts attribute this accelerated demand to several key factors: the introduction of new EV models offering extended range and enhanced features, the rapid expansion of public charging infrastructure, and a narrowing price differential between electric and internal combustion engine (ICE) vehicles. The number of available EV models has grown to 16 from 10 in 2023, providing consumers with broader choices. Concurrently, charging stations have more than doubled, reaching 26,311 from 12,146 in the same period, according to Bureau of Energy Efficiency data, effectively mitigating range anxiety.
Industry executives project this growth trajectory to intensify in the coming years. Tarun Garg, Chief Operating Officer at Hyundai Motor India, highlighted the immense potential, stating, "India's top five automakers who between them control 65% of sales in the local market all have plans to launch electric cars in the mainstream segment going ahead, which in itself opens up a huge potential for expansion in the segment." Hyundai, which launched its mass-market Creta EV earlier this year, plans to introduce six new EV models over the next five years and establish 600 DC fast-chargers nationwide by 2032, with 89 already operational on key highways.
Market leader Tata Motors, currently revamping its product line for both fleet and premium SUV segments, anticipates a significant uptick. The company expects EVs to account for 30-40% of its new car sales by 2030, projecting that electric cars will comprise a fifth of total new vehicle sales across the broader industry within the same timeframe. This aggressive outlook, coupled with the current adoption rate, positions India's EV sector for annual sales exceeding half a million units by the turn of the decade, according to Federation of Automobile Dealers' Associations (FADA) data, which reported 99,165 EV sales in calendar year 2024.