NEW DELHI, 8th July 2025: India’s electric passenger vehicle segment has evolved beyond its early adopter phase. With a month-on-month growth of 7.1% from May to June, it has become a mainstream battleground, where brand rivalry, product strategies, and pricing are evolving in real-time.
June was not only a record month for electric passenger vehicle (EV) sales in India, but it also marked a significant shift in the competitive landscape, with Mahindra making its most decisive move yet.
For the first time, India’s electric passenger vehicle market surpassed 13,000 units sold, with Mahindra & Mahindra emerging as the standout performer, achieving a remarkable 523% year-on-year increase in sales. This impressive rise, along with sustained growth from JSW MG Motor, is reshaping a market that was previously dominated by Tata Motors.
According to the Federation of Automobile Dealers Associations (FADA), a total of 13,178 electric cars were sold in June, representing an almost 80% increase from the previous year. EV penetration in the passenger vehicle segment reached a new high of 4.4%, up from 2.5% in June 2024.
June capped a robust first quarter for Mahindra. Between April and June, the company sold 8,640 electric vehicles, securing a 22.9% market share—a significant climb for a company that was previously a minor player in the EV sector.
Mahindra’s resurgence is credited to the popularity of its electric models and growing anticipation for its upcoming Born Electric SUV lineup.
“Mahindra’s explosive growth demonstrates that the EV market is no longer limited to early adopters or affordability; it centres on brand trust, utility, and scale,” said Vinkesh Gulati, former president of FADA. “We are witnessing a crucial shift toward electric mobility becoming the mainstream choice in India’s SUV market,” he added
The New Competitive Landscape
Tata Motors remains the market leader, with 13,495 units sold in Q1, with Tata Motors overtaking MG for June; however, the pace of its dominance is under threat from the rise of MG & Mahindra. In June, Tata sold 4,708 EVs, reflecting only 2.5% year-on-year growth, which is significantly lower than the market average.
JSW MG Motor India retained its second-place position, selling 11,199 units in the quarter and 3,972 in June, marking a 168% year-on-year increase.
Combined, Tata, MG, and Mahindra now dominate 88.4% of India’s electric passenger vehicle market, underscoring the intensifying competition among the top three players.
Growth Beyond the Major Players
Several smaller and luxury brands are also expanding their foothold in the electric vehicle market. Hyundai Motor India reported 1,795 EV sales in Q1, while BYD India followed with 1,316 units sold.
In the premium segment, BMW surpassed Mercedes-Benz by selling 214 EVs in June, more than double the sales of its German rival, marking an impressive 275% growth compared to last year.
A New Phase in EV Evolution
“Electric three-wheelers now comprise over 60% of all three-wheeler sales, solidifying their role in last-mile connectivity, while passenger vehicle EV penetration rose to 4.4%, and electric commercial vehicles doubled to 1.56% year-on-year. By expanding charging infrastructure and fostering domestic innovation, this visionary initiative is propelling record EV sales nationwide and paving the way for a cleaner, smarter, and self-reliant mobility future for India.” Vigneshwar further added
Commenting on the broader shift in the market, FADA President C.S. Vigneshwar stated, “Electric mobility is experiencing unprecedented momentum across all segments, driven by the PM eDrive Scheme’s initiative to make electric vehicles more accessible and affordable. In June 2025, electric two-wheelers accounted for 7.3% of the market, up from 5.8% a year ago, reflecting growing consumer confidence in EV technology.”
As Mahindra gains momentum and Tata faces increasing pressure, the next chapter in India’s EV narrative will be defined not just by who sells more, but by who shapes the future of this industry.
