India’s electric vehicle (EV) sector is experiencing a significant boost in 2025, driven by aggressive policy support, falling battery prices, and increased consumer awareness. With a national target of 30% EV penetration by 2030, the government and private players are working in tandem to build infrastructure, encourage adoption, and localize manufacturing.
Sales of electric two-wheelers, three-wheelers, and passenger vehicles have crossed 2 million units in the first half of 2025, marking a 30% year-on-year growth. The shift is particularly strong in urban areas, fleet services, and state transport corporations, where the total cost of ownership for EVs has dropped below internal combustion vehicles.
Government Support: The Driving Force
The recently launched FAME III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme is providing continued subsidies for two-wheelers and commercial EVs. Unlike its predecessors, FAME III places a stronger emphasis on battery standardization, interoperability of charging networks, and local component sourcing.
In parallel, the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells is helping domestic manufacturers reduce reliance on Chinese imports and accelerate battery innovation.
State governments have also stepped in with additional perks, including:
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Road tax waivers and registration fee exemptions
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Interest-free loans for EV purchases
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Free parking zones and green license plates
Charging Infrastructure Expands Rapidly
Charging remains a key focus in 2025. India now boasts over 15,000 public charging stations, with fast-charging corridors connecting Delhi-Mumbai, Chennai-Bengaluru, and Kolkata-Guwahati.
Oil marketing companies like IOCL, BPCL, and HPCL have converted hundreds of fuel pumps into multi-energy retail outlets, offering EV charging alongside petrol and diesel.
Startups such as ChargeZone, Statiq, and Ather Grid are also scaling their networks using subscription models, battery-swapping stations, and mobile chargers.
Two- and Three-Wheelers Lead the Charge
Electric two-wheelers continue to dominate the market, accounting for over 60% of total EV sales. Brands like Ola Electric, Ather Energy, TVS iQube, and Bajaj Chetak have seen high demand among urban youth and delivery riders.
In the commercial sector, electric three-wheelers are revolutionizing last-mile delivery and public transport. Swiggy, Zomato, BigBasket, and Flipkart have pledged to electrify a majority of their fleets by 2027.
State-run transport agencies in Delhi, Maharashtra, and Tamil Nadu have ordered thousands of electric buses, supported by viability gap funding and operational subsidies.
Challenges and the Road Ahead
Despite progress, challenges remain. Concerns about battery life, resale value, and range anxiety still deter many first-time buyers. Rural adoption is limited due to lack of charging points and maintenance infrastructure.
Industry leaders are calling for a national battery recycling policy, better resale financing options, and faster GST revisions on EV spare parts (currently taxed at higher slabs).
Conclusion
With momentum building across manufacturing, policy, and infrastructure, India’s EV sector is no longer a niche—it is a mainstream mobility revolution in progress. As 2025 unfolds, all signs point toward a greener, quieter, and cleaner automotive future.