India's EV sales hit 2.3mn in 2025, capturing 8% of all new registrations
Electric 2-wheelers dominated the market with 1.28mn units
UP led state-wise volumes, while Delhi and Kerala achieved the highest penetration ratios
India’s EV Market Hits 2.3Mn Sales in 2025: Two-Wheelers Drive Adoption, Policy & Festive Demand Push Year-End Surge
IESA report using Vahan data shows EVs reached 8% of new vehicle registrations; electric three-wheelers and buses emerging as policy priorities
India EV
Summary
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India’s electric-vehicle market crossed a significant milestone in 2025, with sales touching 2.3 million units, accounting for about 8% of all new vehicle registrations, according to India Energy Storage Alliance’s India EV Market 2025 report. The growth was driven by policy incentives, expanding charging and energy-storage infrastructure, and a sharp spike in demand during the festive season in the fourth quarter, the report said, citing Vahan Portal data.
Two-Wheelers Led Transition
Electric two-wheelers continued to anchor adoption, with sales of 1.28 million units, or 57% of total EV volumes. Electric three-wheelers followed with 0.8 million units, making up 35% of sales, while electric passenger vehicles accounted for about 1.75 lakh units. The skew toward two- and three-wheelers underscores that India’s EV transition remains led by affordable, last-mile mobility rather than private cars.
Overall vehicle registrations stood at 28.2 million in 2025, with two-wheelers dominating the broader market. EV sales were steady through the first three quarters before accelerating sharply in Q4, helped by year-end purchases and GST-linked incentives.
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Uttar Pradesh emerged as the largest EV market by volume, followed by Maharashtra and Karnataka, while Delhi, Kerala and Goa posted higher EV penetration ratios. Smaller states such as Tripura and Assam also stood out with unexpectedly high EV-to-ICE shares.
Policy Push
On the policy front, the report highlighted the completion of India’s largest electric-bus tender, under which CESL awarded contracts for 10,900 buses as part of the PM E-DRIVE scheme. IESA noted that government focus is increasingly shifting toward commercial electrification, particularly buses and three-wheelers, where fleet economics and centralized charging make the case for EVs stronger.
The electric three-wheeler segment, with penetration of around 32%, was described as having reached a level of maturity that now warrants a move from incentives-led adoption to large-scale integration with urban transport and logistics.
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