MUMBAI: 1st April 2025
India’s electric vehicle sales have narrowly missed the 2 million milestone by 35,000 units, achieving a total of 1.96 million units from April 2024 to March 2025, compared to 1,681,241 units in the previous year as seen on the Government of India’s Vahaan portal
However, the figure represents a 17% increase year-on-year from FY2024, adding 283,590 units compared to last year. According to industry analysts, the slowdown in demand incentives has impacted growth, with the growth rate decreasing from 42% in FY24 to 17% in the current year.
Nevertheless, the daily sales rate of electric vehicles has risen to 5,383 units, up from 4,606 units in FY2023 and 3,242 units per day in FY2022.
Significant growth has been observed in the electric two-wheeler segment, which recorded sales of 1.14 million units, along with approximately 699,000 units in the electric three-wheeler category, reflecting a 10% increase from FY2024’s 632,798 units.
This segment now accounts for 35% of India’s total EV sales in FY2025, contributing to stable demand growth. The electric passenger vehicle sector, which includes zero-emission cars, SUVs, and MPVs, has also achieved its highest sales figures to date, with cumulative sales reaching 107,462 units for light motor vehicles and light passenger vehicles, marking an 18% increase year-on-year from FY2024’s 91,321 units.
Total sales of electric commercial vehicles, including buses and both heavy and light goods carriers, reached 8,726 units, reflecting a 7% year-on-year increase, although demand for heavy goods vehicles declined by 15% year-on-year.
The ongoing growth in the EV market can be attributed to heightened consumer awareness regarding the importance of eco-friendly transportation, the low total cost of ownership of electric vehicles, and strong demand from the e-commerce and logistics sectors.
Looking ahead, analysts believe that an increase in domestic manufacturing of EV components will lead to improved cost optimization and further reductions in prices.
