Wheels of Change: The New Landscape of India's Electric Mobility

India's Electric Vehicle (EV) industry is at a defining juncture, with record sales, global OEM participation, and the transition from FAME-II to FAME-III shaping the next phase of growth. Policy support, technological innovation, and rising consumer adoption are converging to accelerate the nation's shift toward sustainable mobility.

- Kaushal Dighavkar Associate Editor

India's Electric Vehicle (EV) market has experienced significant growth in recent years, driven by government initiatives, technological advancements, and increasing consumer awareness. As of 2024, the market was valued at approximately USD 8.49 billion and is projected to grow at a compound annual growth rate (CAGR) of 40.7% from 2025 to 2030. This growth is fueled by a dual push: sustainability and economic competitiveness. The government's focus on reducing carbon emissions and dependence on fossil fuels aligns with the global shift towards cleaner energy sources.

September 2025 marks a crucial turning point for India's EV sector. The conclusion of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAMEII) scheme and the anticipated launch of FAME-III signal a renewed commitment to EV adoption. Additionally, the entry of global Original Equipment Manufacturers (OEMs) like Tesla and BYD into the Indian market underscores the country's strategic importance in the global EV landscape.

Market Momentum: The Numbers Behind the Transition

The Indian EV market has witnessed remarkable growth across various segments. In FY2025, cumulative EV sales reached 6.17 million units, with electric two-wheelers (2Ws) accounting for over 50% of the market share, followed by electric threewheelers (3Ws) at approximately 36%. The passenger vehicle segment, though smaller, is experiencing rapid growth, with sales of electric cars and SUVs crossing 90,000 units in the first seven months of 2025.