EV MANUFACTURING ENTERS TO SCALE-UP PHASE

From airport taxis to city streets, electric vehicles are becoming a daily sight in India. Rising sales, new model launches and expanding battery ecosystems signal a structural shift in mobility and automotive manufacturing.

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For the last few years, the shift has been visible the moment you step out of India's busiest airports.

Whether in Mumbai, Bengaluru, Delhi, or Pune, travellers are increasingly greeted by EV taxis waiting at arrival gates. Green number plates, once a novelty, have become a familiar sight on Indian roads. This everyday visibility reflects a deeper market transition. In 2025, Maharashtra emerged as the top state for electric car sales, followed by Karnataka and Kerala—signalling that electric mobility is no longer confined to pilot projects or policy discussions, but is steadily becoming part of daily urban transport across the country.

India's electric vehicle (EV) market continued its strong upward trajectory in FY25, with total EV sales rising 16.9% year-on-year to 1.97 million units, compared to 1.75 million units in FY24. Growth was broad-based across segments. Electric passenger vehicles crossed the 100,000-unit milestone with an 18.2% increase, e-two-wheeler registrations climbed 21.2% to 1.15 million units, and e-three-wheelers grew 10.5% to around 700,000 units.

Looking ahead, EV passenger vehicles are expected to play a critical role in achieving India's targeted 30% EV market share by 2030. Despite softening global demand, Indian automakers are preparing to launch nearly a dozen new EV models in 2025, with a clear focus on premium offerings. This momentum is also opening fresh opportunities for automotive suppliers, particularly in energy storage. The Indian EV battery market is projected to grow from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028, while overall EV penetration is expected to exceed 7% by FY28, subject to the resolution of rare earth element supply disruptions and continued model introductions, according to the India Brand Equity Foundation (IBEF).