New Delhi: India’s electric vehicle (EV) market crossed a key milestone in 2025, with EV sales reaching 2.3 million units, accounting for 8 per cent of all new vehicle registrations, according to the Annual Report: India EV Market 2025 released by the India Energy Storage Alliance (IESA), based on Vahan Portal data.

The report, released this week, stated that EV adoption in India accelerated steadily through the year, driven by supportive government policies, incentives, and a strong festive season surge in the fourth quarter of 2025.

India recorded 28.2 million total vehicle registrations in 2025. The two-wheeler segment dominated, contributing more than 20 million units, or 72 per cent of total automobile registrations. Passenger four-wheeler sales crossed 4.4 million units, while tractor and agricultural vehicle registrations exceeded 1.06 million, reflecting stable demand across key automotive categories.

While overall vehicle sales growth remained consistent across Q1 to Q3, the market witnessed a sharp Q4 acceleration supported by GST benefits and year-end consumer demand.

Electric two-wheelers drive EV growth

Electric two-wheelers remained the largest contributor to India’s EV growth, registering 1.28 million units, accounting for 57 per cent of total EV sales.

Electric three-wheelers (L3 and L5) ranked second with 0.8 million units and a 35 per cent market share, while electric four-wheelers recorded around 1.75 lakh units.

In the electric four-wheeler category, the report highlighted strong growth in electric commercial vehicles, particularly small and light electric goods carriers, marking early progress in logistics electrification.

Uttar Pradesh leads India’s EV market

Among Indian states, Uttar Pradesh emerged as the largest EV market, recording over 4 lakh EV sales in 2025, contributing 18 per cent of national EV volumes.

Maharashtra registered 2.66 lakh EV sales (12 per cent) and Karnataka crossed 2 lakh sales (9 per cent), together contributing more than 40 per cent of India’s EV market share.

Despite lower overall vehicle volumes, Delhi (14 per cent), Kerala (12 per cent), and Goa (11 per cent) reported higher EV-to-ICE adoption ratios. Northeastern states also showed strong growth, with Tripura (18 per cent) and Assam (14 per cent) posting impressive EV penetration.

The report also noted that the electric three-wheeler market has reached maturity, with penetration nearing 32 per cent, prompting policy recalibration.

India concludes largest electric bus tender

A landmark policy milestone in 2025 was the completion of India’s largest-ever electric bus tender.

Convergence Energy Services Limited (CESL) finalised a 10,900 electric bus procurement under the Rs 10,900 crore PM E-DRIVE scheme, aimed at accelerating green public transport and sustainable mobility.

The report emphasised that while EV penetration remains strongest in two-wheelers and three-wheelers, the government is increasingly focusing on heavy commercial EVs, backed by expanding EV charging infrastructure and long-term electrification strategies.

IESA concluded that India’s EV ecosystem is positioned for sustained growth beyond 2025, with improving affordability, infrastructure development, and strong policy momentum expected to further boost electric mobility adoption across the country.

ANI