India EV Sales Cross 20 Lakh in FY25, Two-Wheelers Lead with 50% Market Share: Report With sales growing across categories and regions, the shift to electric is well underway.
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India's electric vehicle (EV) sector hit a new milestone in FY2025, crossing the 20 lakh mark in annual EV sales, with total cumulative sales reaching 61.65 lakh units by March 2025. The findings come from JMK Research & Analytics' Annual India EV Report Card: FY2025. The data confirms that electric two-wheelers (E2Ws) are leading the charge, accounting for over half of all EVs sold during the year.
This rapid growth, estimated at around 19 per cent year-on-year, has been driven by rising fuel prices, urban congestion, and improvements in EV reliability and affordability. Ola Electric, TVS Motors, and Bajaj continue to dominate this segment, collectively holding more than 70 per cent of the registered E2W market.
"The rising adoption of electric vehicles in India is the result of a well-aligned shift in economics, technology and user behavior," said Kunal Arya, co-founder & managing director, ZELIO E Mobility Ltd. He explained that electric two-wheelers in particular are becoming the go-to option for daily commuting. "Technological improvements, especially in battery performance and vehicle reliability, have addressed earlier concerns about range and durability. Additionally, the government's supportive policies and incentives have played a crucial role in making electric mobility more affordable and accessible."
Passenger electric three-wheelers (E3Ws) came in second, holding approximately 36 per cent of the market. Their combined passenger and cargo sales saw an 11 per cent growth year-on-year (YoY). Mahindra Last Mile Mobility, Bajaj Auto, and YC Electric were the top performers in both the passenger and cargo E3W segments, with market shares of 25 per cent and 19 per cent respectively. These vehicles continue to be vital in India's last-mile transport ecosystem, especially in tier-II and tier-III cities where cost-effectiveness is critical.
Electric car sales also showed steady progress, registering an 11 per cent rise from the previous fiscal year. Tata Motors remained firmly in the driver's seat with a 53 per cent share, while MG Motor followed with 28 per cent. Despite the gains, EV adoption in the passenger car segment still faces headwinds, including higher upfront costs and slower infrastructure development compared to two and three-wheelers.
One area where the momentum slowed was in electric buses. The segment saw a 3 per cent dip in sales compared to FY2024. Still, Tata Motors, Olectra Greentech, and PMI Electro retained a stronghold, accounting for about 69 per cent of all e-bus sales. The decline may reflect procurement delays and policy uncertainty at the state transport level rather than a lack of long-term demand.
Region-wise adoption
Geographically, Uttar Pradesh led all states in cumulative EV sales for the year, followed closely by Maharashtra, Karnataka, Tamil Nadu, and Bihar. These top five states alone made up nearly half of all EV registrations in FY2025. Notably, Bihar's rise into the top five signals growing penetration beyond the traditional urban strongholds, a shift that industry leaders like Arya believe is critical for sustainable EV growth.
"We've observed that the real momentum is coming from everyday users in both urban and rural areas who are looking for smarter mobility choices that don't compromise on convenience or cost," Arya said. He emphasized the importance of tailoring government incentives and infrastructure initiatives to regional needs, especially in underserved rural markets. "Expanding targeted incentives, ensuring timely subsidy disbursals, and offering easy financing options will help make EVs more affordable and appealing to a broader audience."
Arya also called for stronger investment in localized charging infrastructure and battery-swapping networks, along with EV-specific skill development and awareness campaigns in regional languages. These steps, he argued, would solidify grassroots adoption and bridge the gap between policy intent and on-ground impact.
