India Electric Vehicle Market to Grow at a CAGR of 19.0% Over the Forecast Period; Rising Environmental Awareness to Augment Market Expansion

The India electric vehicle market size was worth USD 3.98 billion in 2024. It is predicted 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.

Fortune Business Insights™ presents this information in its report titled, “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 is a fast-evolving world where mobility meets electricity, whether through pure battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). It includes everyone from vehicle producers to battery creators and charging infrastructure builders. Government pushes through FAME India, rising environmental awareness, expensive fuels, and rapid innovations in EV and battery technologies are bolstering market expansion.

MG Motor Marked a Milestone in India as It Rolled Out Windsor EV

In September 2024, MG Motor introduced its third electric vehicle in India, the Windsor EV, a smartly rebadged version of the popular Wuling Cloud EV from China. But this launch wasn’t just about a new badge on the road. It symbolizes the big step after MG Motor India joined forces with Jindal Steel Works (JSW). With the Windsor EV, MG introduces India to its first all-electric multi-purpose vehicle, or as it is stylishly rebranded, a CUV (Crossover Utility Vehicle).

Increase in Fossil Fuel Prices to Augment Market Growth

The continued increase in fossil fuel prices across India is projected to play a key role in driving market growth. While conventional fuel-based vehicles generally have a lower purchase price, their operating costs have surged with rising gasoline and diesel prices. Electric vehicles, on the other hand, deliver substantial cost advantages in long-term usage. Consequently, this cost differential is expected to accelerate consumer transition toward EVs and bolster market growth in the coming years.

Conversely, the substantial initial costs of EVs hamper the India electric vehicle market growth.

Top Players Emphasize Innovation to Enhance Their Product Range

Major participants in this market are actively focusing on innovation to address shifting industry demands, enhance their product range, and solidify their competitive standing through targeted alliances and acquisitions. India’s EV market is evolving quickly, with established domestic manufacturers and emerging disruptors shaping the competitive landscape.

Notable Industry Development

• August 2023: After launching its new EV brands (XUV and BE) in the U.K. last year, Mahindra & Mahindra Ltd. announced it would introduce five new electric SUVs in India by 2026. These models will be developed on Mahindra’s advanced INGLO EV platform.

List of the Companies Profiled in the Report

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

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/india-electric-vehicle-market-106623

Further Report Findings

• By vehicle type, the passenger car segment accounted for the leading India electric vehicle market share in 2024. Electric passenger vehicles are gaining traction, owing to their wide availability, comfort, and luxury they offer with clean emissions. Rising trend of purchasing passenger EVS to fuel segment growth.
• In terms of propulsion type, the battery electric vehicle (BEV) segment dominated the market. An increase in battery electric passenger vehicle production in India is projected to boost segment expansion in the coming years.
• Based on drive type, the front wheel drive segment led the market in 2024. Most EVs sold in India fall within the compact and mid-size categories, aimed primarily at urban commuters and middle-income buyers. FWD layouts remain prevalent in this segment due to their balance of performance, efficiency, and cost-effectiveness.
• By range, the 151-300 miles segment held the largest market share in 2024. In 2025, several high-volume EV models from Tata, Mahindra, and MG, continue to compete within this range brand. Their pricing, typically between USD 7000- USD 30,000, aligns well with the affordability expectations of a wide consumer segment, supporting sustained market uptake.
• On the basis of component, the battery pack & high voltage component segment recorded the highest market share in 2024. The segment growth is driven by the establishment of new cell manufacturing facilities, increased vertical integration across cell-module-pack production, adoption of structural/CTB architectures, expansion of recycling/second-life ecosystems that reduce material costs, and advancements in battery chemistry that enhance USD/kWh metrics and overall lifespan.

Table of Segmentation