India’s electric vehicle market showed mixed trends in 2025. Sales of electric two-wheelers slowed as subsidies were cut and former leader Ola Electric lost market share. At the same time, electric passenger vehicles (PVs) recorded strong growth due to new launches and better pricing.
Hanif Qureshi, Additional Secretary in the Ministry of Heavy Industries, said the petrol and diesel car market is like a large ship that moves slowly, while electric cars are like a small speedboat that is rapidly gaining pace. He added that the ICE market may have levelled off for now, while electric PVs are still expanding quickly.
Electric three-wheelers performed very well, with nearly one out of every three vehicles now electric.
Data from the Vahan portal shows that sales of electric PVs rose by about 86 per cent in 2025 compared to 2024. Around 2.73 lakh electric cars were sold this year, up from 1.26 lakh last year. Sales of plug-in hybrid and strong hybrid cars have also almost doubled.
Ramnath E of MarketsandMarkets said the growth was driven by launches from Tata Motors, Mahindra & Mahindra, BYD, Hyundai, and new players such as Tesla and VinFast. Nearly 17 new electric car models were introduced in 2025, mainly in the SUV and family car segments.
Hitesh Thakurani of HDFC Securities said companies are pushing electric cars to meet future fuel efficiency targets and to gain experience in the EV segment.
In contrast, electric two-wheeler sales grew only 11 per cent in 2025, reaching about 12.3 lakh units. This was much lower than the 34 per cent growth seen in 2024. Lower subsidies, falling Ola Electric volumes, and cheaper petrol bikes after GST changes reduced the pace of growth.
