India Electric Vehicle Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV)), By Drive Type (All Wheel Drive, Front Wheel Drive, and Rear Wheel Drive), By Range (Up to 150 Miles, 151-300 Miles, and Above 300 Miles), By Component (Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, and Low Voltage Electric Component), and Country Forecast, 2025–2032

The India electric vehicle market size was worth USD 3.98 billion in 2024. It is projected to be worth USD 5.28 billion in 2025 and reach USD 17.88 billion by 2032, exhibiting a CAGR of 19.0% during the forecast period.

The India electric vehicle market comprises all vehicles that run fully or partially on electricity, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). It encompasses vehicle manufacturers, battery producers, charging infrastructure providers, and associated services. It is propelled by government initiatives such as the FAME India Scheme, increasing environmental consciousness, rising fuel prices, and continuous advancements in EV and battery technologies.

India Electric Vehicle Market Trends

Expansion of EV Charging Infrastructure is Propelling Market Growth

India’s electric vehicle (EV) charging infrastructure has expanded rapidly in recent years, fueled by both government support and private sector investment. As of August 2025, the country boasts over 29,000 public charging stations, with Karnataka, Maharashtra, Uttar Pradesh, and Delhi leading in deployment. Initiatives such as the FAME India Scheme (FAME II) and the PM E-DRIVE program have committed substantial funding, approximately USD 0.11 billion and USD 0.22 billion, respectively, to facilitate the installation of thousands of charging points, including fast chargers for quicker turnaround. The network comprises both slow and fast charging stations, strategically placed in urban hubs and increasingly extended to Tier-2 and Tier-3 cities, ensuring greater accessibility for EV users.

India Electric Vehicle Market Growth Factors

Rising Fossil Fuel Prices to Boost Market Growth

Surging fossil fuel prices in India are one of the major factors that are anticipated to drive the India electric vehicle market growth. The purchasing cost of fossil fuel-powered vehicles is lower than EVs. However, their operating cost is high due to surging gasoline and diesel prices. In contrast, the operating cost of electric type of vehicles is significantly less than that of fossil fuel-powered vehicles. Therefore, shifting consumer preference toward adopting EVs as a response to rising fossil fuel prices is predicted to enhance market growth over the forecast period.

India Electric Vehicle Market Restraints

High Initial Costs of EVs Limit Market Growth

EVs in India are typically 20–30% more expensive than internal combustion engine (ICE) vehicles, mainly due to high battery and imported component costs. This cost disadvantage makes EVs unaffordable for many consumers, stalling widespread adoption despite government incentives. Thus, the high initial costs of EVs hamper the market.

India Electric Vehicle Market Segmentation Analysis

By Vehicle Type

Based on vehicle type, the market is divided into passenger car and commercial vehicle.

The passenger car segment held the largest India electric vehicle market share in 2024. The electric passenger vehicle is in greater demand due to the availability of varied options, comfort, and luxury it provides with clean emissions. Increasing trend of buying passenger EVS to boost segment growth.

Commercial vehicles are expected to experience a significant rise during 2025-2032.

By Propulsion Type

Based on propulsion type, the market is bifurcated into battery electric vehicle (BEV) and hybrid electric vehicle (HEV).

The battery electric vehicle (BEV) segment held the largest market share in 2024. Battery electric passenger vehicle production in India is projected to grow significantly, with a year-over-year increase of 140.2% in 2025, reflecting a strong manufacturing focus on BEVs.

By Drive Type

Based on drive type, the market is segmented into all wheel drive, front wheel drive and rear wheel drive.

The front wheel drive segment held the leading market share in 2024. The majority of EVs sold in India are compact and mid-segment models targeting urban commuters and middle-class consumers. FWD configurations dominate this segment as they provide adequate performance and practicality at a competitive price.

By Range

Based on range, the market is segmented into 150 miles, 151-300 miles, and above 300 miles.

The 151-300 miles segment held the maximum market share in 2024. In 2025, numerous EVs in India, including popular models from Tata, Mahindra, and MG, fall within this range category. These models offer competitive pricing around USD 7000- USD 30,000, which aligns with the purchasing power of a broad buyer base. This development drives the segment growth.

By Component

Based on component, the market is segmented into battery pack & high voltage component, motor, brake, wheel & suspension, body & chassis, and low voltage electric component.

The battery pack & high voltage component segment held the maximum market share in 2024. Increasing new cell plants, vertical integration (cell→module→pack), structural/CTB designs that cut parts and weight, recycling/second-life ecosystems that lower effective material cost, and chemistry innovation that improves USD/kWh and lifespan have propelled segment growth.

List of Key Companies in the India Electric Vehicle Market

Key players in this market continuously innovate to meet evolving industry demands, expand their product offerings, and strengthen their market presence through strategic collaborations and acquisitions. India's electric vehicle market is a dynamic landscape featuring both established domestic giants and emerging challengers. The major players in the market include Tata Motors, MG Motor, and Mahindra & Mahindra.

LIST OF KEY COMPANIES PROFILED

• Tata Motors (India)
• MG Motor (India)
• Mahindra & Mahindra (India)
• Hyundai Motor India (South Korea)
• BYD India (China)
• Ashok Leyland (India)

KEY INDUSTRY DEVELOPMENTS

• In September 2024, MG Motor launched its third electric vehicle in India, the Windsor EV. It is essentially a rebadged Wuling Cloud EV sold in China. Moreover, this new model holds great significance since this is the first launch since MG Motor India joined hands with Jindal Steel Works (JSW). The Windsor EV is going to be the first all-electric multi-purpose vehicle, or as MG likes to call it, a CUV (Crossover Utility Vehicle).
• In August 2023, Mahindra & Mahindra Ltd. introduced its new EV brands (XUV and BE) in the U.K. last year. The company has now announced that it will launch five new electric SUVs in India by 2026. These upcoming products will be based on Mahindra’s state-of-the-art INGLO EV platform.

REPORT COVERAGE

The India electric vehicle market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growth in EVs, the increase in EV penetration, and the growth in the country. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for EVs.

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Report Scope & Segmentation