India's Electric Vehicle Economy
India's EV Transition at a Glance
How fast electric vehicles are spreading in India, which segments lead, and why India's EV story looks different from China's or Europe's.
India’s electric vehicle (EV) market has grown quickly from a small base.
Sales
- EVs made up around 7 to 8 percent of all new vehicle sales in India in 2024-25, according to industry data.
- Over 2 million EVs were sold in a year for the first time in 2024-25.
Which vehicles lead
- Three-wheelers: e-rickshaws and electric autos make up a large share of new three-wheeler sales, often over half.
- Two-wheelers: electric scooters from Ola Electric, TVS, Bajaj and Ather.
- Cars: still a small share, around 2 to 3 percent of car sales.
- Buses: growing through government tenders.
Why India is different
- In China and Europe, electric cars lead the transition.
- In India, most people travel by two- and three-wheelers, so these segments lead.
Why it matters
- Oil imports: India imports most of its crude oil.
- Air pollution in cities.
- Climate goals.
- Industrial opportunity in batteries and vehicles.
Target
The government has spoken of EVs reaching around 30 percent of new private car sales and much higher shares for two- and three-wheelers by 2030.
The e-rickshaw street
In many north Indian towns, battery-powered e-rickshaws now outnumber older auto-rickshaws, carrying passengers cheaply on short trips.
Thinking EV adoption means electric cars
In India, two- and three-wheelers lead the EV shift.
Key takeaways
- EVs were around 7 to 8 percent of India's vehicle sales in 2024-25.
- Three- and two-wheelers lead; cars lag.
- EVs cut oil imports and pollution.
- India's EV path differs from China's and Europe's.
No recording for this one yet - EconReader can read it aloud for you.