The Surge of Electric Passenger Vehicles in India: A 2025 Retrospective

A Record-Breaking Year

The Indian electric passenger vehicle (e-PV) segment has witnessed an unprecedented surge in 2025, achieving its best-ever annual sales with 176,538 units—a staggering 77% increase from the previous year’s 99,693 units. This substantial growth reflects a broader trend in the automotive market as consumers gravitate toward more sustainable options, even amidst higher upfront costs compared to traditional internal combustion engine (ICE) vehicles.

Rising Demand for Zero-Emission Vehicles

As the appetite for zero-emission cars, SUVs, and multi-purpose vehicles (MPVs) grows, it is clear that Indian consumers are making a shift towards electric options. The numbers speak for themselves: from 2015 to 2024, more than 425,000 electric passenger vehicles were sold. The increasing prevalence of EVs is now visible on urban roads, indicating a significant change in consumer preference as buyers opt for more environmentally friendly alternatives.

A Breakthrough Year

The year 2025 stands out for many reasons. Notably, it was filled with remarkable monthly sales figures, with 11 months surpassing the 11,000-unit mark. October saw a historic peak with 19,161 units sold. Although a reduction in Goods and Services Tax (GST) on ICE vehicles affected later sales, this dip did not overshadow the strong overall performance of the e-PV segment throughout the year.

Competitive Landscape and Market Dynamics

As the e-PV market expanded, it became increasingly competitive, with new players entering the arena, including VinFast and Tesla. Market leader Tata Motors saw its share dwindle from 62% in 2024 to 40% in 2025, largely due to aggressive competition from JSW MG Motor India and Mahindra & Mahindra. This dynamic led to the sale of an additional 76,845 e-PVs in 2025 compared to the previous year, showcasing the industry’s vitality.

Leaders of the Pack

1. Tata Motors

• Sales in CY2025: 69,955 units (up 13%)
• Market Share: 40%, down from 62%

Despite being a market leader, Tata Motors faced pressure due to increasing competition. Their overall growth was commendable, but the entry of new players began eroding their market share. Their recent offerings, including the Harrier EV, helped maintain a loyal customer base, though it wasn’t enough to retain their once-massive market dominance.

2. JSW MG Motor India

• Sales in CY2025: 51,376 units (up 136%)
• Market Share: 29%, up from 22%

JSW MG Motor India experienced an extraordinary year, marking a growth trajectory that far exceeded expectations. The launch of the Windsor EV played a pivotal role in this acceleration, along with innovative initiatives like the Battery-as-a-Service (BaaS) model. Their robust sales growth has allowed this emerging contender to carve out a substantial share of the market.

3. Mahindra & Mahindra

• Sales in CY2025: 33,512 units (up 369%)
• Market Share: 19%, up from 7%

Mahindra witnessed incredible growth, nearly tripling its sales figures year-on-year. Their new Born Electric SUVs, particularly the BE 6 and XEV 9e, were game-changers that put them in the third position among e-PV manufacturers. This strategic shift has revolutionized their market presence.

4. Hyundai Motor India

• Sales in CY2025: 6,726 units (up 637%)
• Market Share: 4%, from 1% in CY2024

Hyundai made significant strides, thanks to the launch of the Creta EV. While initial post-launch numbers were promising, sustained interest proved challenging; nonetheless, the company elevated its market share dramatically.

5. BYD India

• Sales in CY2025: 5,402 units (up 88%)
• Market Share: 3%, remaining steady

As a key player from China, BYD observed solid growth in its sales figures. However, it slipped to fifth place as Hyundai surged forward. The introduction of the Sealion 7 SUV catered well to premium consumers, further establishing their brand.

Emerging Contenders

6. Kia India

• Sales in CY2025: 2,731 units (up 558%)
• Market Share: 1.54%

Kia experienced remarkable growth, largely fueled by the demand for the Carens Clavis EV.

7. Stellantis India (Citroen)

• Sales in CY2025: 871 units (down 55%)
• Market Share: 0.49%

Stellantis faced challenges as their sales declined.

8. VinFast India

• Sales in CY2025: 826 units
• Market Share: 0.46%

This Vietnamese manufacturer has entered the Indian market with a marginal presence but aims to grow its share through various strategies.

Luxury EV Market: A Growing Perspective

The luxury electric vehicle segment also thrived in 2025, with a notable 78% year-on-year growth, resulting in 5,116 units sold. BMW India led this rapid expansion with a commanding share of 62%, followed by competitors like Mercedes-Benz and Volvo.

Key Players in Luxury EVs

• BMW India: Strong recovery with 3,195 units sold.
• Mercedes-Benz India: 1,168 units, retaining second place.
• Volvo India: Experienced a drop, selling 389 units.

Future Directions

The statistics reveal that over 275,000 electric passenger vehicles have been sold in the last two years in India. With the increasing adoption of electric vehicles and the competition heating up, players across the automotive spectrum are keenly navigating this evolving landscape, making it an exciting time for both consumers and manufacturers.