EV Business Begins to Turn the Corner for Top Automakers

After pumping in money for several years, Indian automotive manufacturing companies are finally beginning to see their electric vehicle (EV) businesses moving towards profitability.

- Ayaan Kartik

EV businesses of top car makers Tata Motors and Mahindra and Mahindra (M&M) are already operationally profitable—a crucial milestone towards full profitability—even as Hyundai Motor India said its flagship EV is per-unit profitable. These three companies account for nearly two-thirds of the electric car market. Meanwhile, two-wheeler majors Bajaj Auto Ltd, Hero MotoCorp, Ather Energy and Ola Electric Ltd are hopeful of turning operationally profitable soon. Achieving net profit, however, is some distance away for both segments.

The trend comes on the back of strong growth in sales of EVs in FY25. Even as electric passenger vehicle sales rose 18% to 107,645 units in the fiscal year, electric two-wheeler sales grew 21% to 1.14 million units in the same period, as per Vahan portal data.

Analysts said policy incentives and a reduction in the cost of EV production are helping their profitability push.