The India electric vehicle market size was valued at USD 2,360.97 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,64,420.39 Million by 2033, exhibiting a CAGR of 57.23% during 2025-2033. South India currently dominates the market, holding a significant market share of over 38.6% in 2024. The increasing environmental concerns among the masses, growing demand for fuel-efficient and high-performance automobiles, supportive government policies, rapid urbanization, expanding charging infrastructure, continual technological advancements, rising disposable incomes, and strong demand for sustainable transportation solutions are some of the major factors augmenting India electric vehicle market share.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 2,360.97 Million |
Market Forecast in 2033
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USD 1,64,420.39 Million |
Growth Rate (2025-2033) | 57.23% |
The market is primarily driven by rising environmental concerns and the need to reduce carbon emissions. According to an industry report, in alignment with global sustainability goals, India has committed to a long-term low-carbon development strategy, reaffirming its target of achieving net-zero emissions by 2070. This national commitment acts as a catalyst for the EV sector, encouraging the adoption of cleaner mobility solutions. Also, the emergence of shared mobility platforms integrating electric fleets is a growing India electric vehicle market trend. In addition to this, the implementation of supportive government initiatives plays a crucial role in incentivizing both manufacturers and consumers, which is positively impacting market expansion. Moreover, the growing cost competitiveness of EVs, due to advancements in battery technology and decreasing production costs, further enhances market appeal. Besides this, an expanding EV charging infrastructure across urban and semi-urban areas is facilitating greater adoption, which is also a significant growth catalyst for the market.
Additionally, increasing investments from both domestic and international automakers are leading to innovation and market expansion. Apart from this, consumer awareness regarding the long-term economic and environmental benefits of EVs is steadily increasing, which is providing a boost to India electric vehicle market growth. Also, favorable regulatory frameworks and state-level policy support are further reinforcing the ecosystem. The integration of renewable energy sources with EV charging solutions is facilitating the development of a cleaner, more efficient transport infrastructure, further enriching the market outlook. For instance, on January 30, 2025, Exicom, a prominent manufacturer of EV charging solutions, partnered with ChargeZone, an integrated e-mobility company, to deploy over 500 high-power EV charging stations across India. This collaboration aims to enhance the nation's EV infrastructure by integrating renewable energy sources, thereby supporting India's transition to sustainable mobility.
Rising Prices of Fuel
The rising fuel prices in India are significantly contributing to India electric vehicle market demand. As the cost of gasoline and diesel continues to escalate, consumers are increasingly turning to electric vehicles as a cost-effective alternative. For instance, in the fiscal year 2023, the high-speed diesel oil wholesale price index in India exceeded INR 191. In India, the price index value of diesel oil rose by around 91% when compared to 2012. This shift is driven by the lower operating costs associated with EVs, which include reduced fuel expenses and lower maintenance costs compared to internal combustion engine (ICE) vehicles. Besides this, the surging price of crude oil is also shifting the demand towards electric vehicles. For instance, in the fiscal year 2023, the average price of Indian basket crude oil was projected to be USD 97.67 per barrel. This figure represents a significant rise above the average of USD 78.19 per barrel in the previous year. Moreover, advances in battery technology are enhancing the appeal of EVs. Improved energy density, faster charging times, and longer driving ranges are addressing consumer concerns about range anxiety and convenience, making EVs a more practical choice for everyday use. For instance, in March 2024, MG Motor India launched MG ZS EV new Excite Pro variant that comes with fast charging. The model would get the power from a 50.3 kWh battery pack that offers a range of 461 km on a single charge. Moreover, it just takes 60 minutes to get to 80% with a 50-kW charger. These factors are further positively influencing the India electric vehicle market forecast.
Increasing Government Initiatives
The Indian government is introducing various initiatives to promote the adoption of electric vehicles and the development of charging infrastructure, which is enhancing the India electric vehicle market outlook. For instance, in February 2024, the Ministry of Heavy Industries, Government of India, launched the Electric Mobility Promotion Scheme (EMPS) 2024. This is a fund-limited scheme with a total of INR 500 Crores (about USD 60.24 Million) over the course of four months, from April 1, 2024, to July 31, 2024, to encourage the faster adoption of electric two-wheelers and three-wheelers. The goal is to further boost the nation's EV manufacturing ecosystem and promote green mobility. Moreover, advances in charging technologies, such as fast chargers and battery swapping stations, are making EVs more convenient for consumers. This is helping to alleviate range anxiety, a common concern among potential EV buyers. For instance, in May 2024, Exicom launched Harmony Gen 1.5 DC, India's fastest DC Charger with a capacity of up to 400 kW. The charger is equipped with an advanced AI-driven remote management system, high operational efficiency, and many more features. These factors are escalating the industry’s growth. According to India electric vehicle market analysis, rapid urbanization and the development of smart cities in India are creating a conducive environment for the adoption of electric vehicles. Smart city projects often include the establishment of EV charging infrastructure as part of their urban planning. For instance, in February 2024, Hyundai Motor India launched 11 ultra-high-speed public EV charging stations across key highways and six major cities in India. These factors are further contributing to the India electric vehicle market share.
Development of Self-Driving Electric Vehicle Technology
Self-driving capabilities add an extra layer of convenience and comfort for consumers. Integration of autonomous features in electric vehicles makes them more attractive options compared to traditional vehicles, leading to an increased adoption. Moreover, self-driving EVs can potentially reduce operational costs for businesses and individual owners. Features like autonomous driving and parking can lead to improved fuel efficiency, lower maintenance costs, and reduced labor expenses across the transportation and logistics sectors. According to an industry report, driverless taxis could cut ride costs by as much as 40%, offering the potential to transform urban transportation across India. For instance, in April 2024, Ola, a mobility platform, launched a unique addition to the electric scooter market: the 'Ola Solo.' Solo, known as 'India's first autonomous electric scooter,' has features that promise to revolutionize urban commuting. The Solo electric scooter is packed with technology, including cutting-edge AI capabilities for a smarter, safer, and more convenient journey. Solo, which is powered by an in-house built chip called the LMA09000, uses artificial intelligence to traverse streets. Its adaptive system, JU-GUARD, ensures constant learning from each ride, which improves efficiency and performance. In line with this, in 2023, Minus Zero, an AI start-up based in Bengaluru launched India's first autonomous vehicle. The electric device known as zPod, which is built on a camera-sensor suite, can operate in any type of environment or location and can even reach Level 5 autonomy, which means it can operate without human intervention in all driving conditions. These factors are bolstering the India electric vehicle market revenue.
IMARC Group provides an analysis of the key trends in each segment of the India electric vehicle market, along with forecasts at the regional level from 2025-2033. The market has been categorized based on vehicle type, price category, and propulsion type.
Analysis by Vehicle Type:
Passenger vehicles lead the market in 2024. The demand for passenger electric vehicles is driven by various factors, including technological advancements, government incentives, and changing consumer preferences. Electric passenger vehicles, including cars and SUVs, offer an attractive solution to reduce dependence on fossil fuels and combat air pollution in congested cities. Automakers are responding with expanded EV lineups and competitive pricing. As urbanization accelerates and consumer awareness around sustainability grows, the demand for electric passenger vehicles is steadily rising. Moreover, the Indian government is implementing various policies and incentives to promote the adoption of EVs. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, along with state-level incentives, has been instrumental in encouraging both manufacturers and consumers. These incentives include subsidies, tax benefits, and support for setting up charging infrastructures. For instance, in March 2024, around 9,503 electric passenger vehicles were sold in India.
Analysis by Price Category:
Mid-range leads the market with around 82.6% of market share in 2024. As per the India electric vehicle market overview, with the fluctuating and often increasing prices of fossil fuels, consumers are looking for more economical alternatives. Electric vehicles offer lower running costs compared to traditional internal combustion engine (ICE) vehicles. The savings on fuel expenses over time make mid-range EVs a financially viable option for many Indian consumers. Moreover, the Indian government has implemented various policies and incentives to promote the adoption of electric vehicles. Schemes like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) provide subsidies, tax benefits, and other incentives to both manufacturers and consumers. These measures significantly reduce the cost of EVs, making them more attractive to a broader segment of the population. For instance, in May 2024, Stellantis and Leapmotor partnered for major global expansion and Leapmotor announced to enter Indian Market by Q4 2024 to bring affordable electric vehicles.
Analysis by Propulsion Type:
Battery electric vehicle leads the market with around 99.7% of market share in 2024. BEVs are becoming popular due to their low running costs, including reduced fuel expenses and maintenance. Moreover, rising fuel prices are pushing consumers to consider electric vehicles as a more economical alternative. Also, continuous improvements in battery technology are making electric vehicles more efficient and affordable. BEVs are particularly important in the two-wheeler, three-wheeler, and passenger car segments, which dominate India’s personal and commercial transport landscape. The cost of lithium-ion batteries has been decreasing, which reduces the overall cost of BEVs. Additionally, advancements in battery capacity and charging speeds are addressing concerns related to driving range and charging times. For instance, in March 2024, Volkswagen, a German carmaker, revealed the ID.4, its first battery-electric vehicle, for the Indian auto market. Volkswagen ID.4 is expected to go on sale in India by the end of 2024.
Regional Analysis:
In 2024, South India accounted for the largest market share of over 38.6%. According to India electric vehicle market report, the integration of advanced technologies, such as in-built chargers in EVs, represents one of the major factors propelling the India electric vehicles market growth in South India. Major manufacturers have established substantial operations in the state, contributing significantly to market expansion in the region. Moreover, the rising preference for hybrid electric vehicles (HEVs) as they help to improve fuel economy, lower fuel costs, and reduce emissions, is favoring the growth of the market in the region. Apart from this, the growing investment in installing EV charging stations across South India is creating a positive outlook for the market. For instance, in May 2024, Matel, an electric vehicle component maker based in Pune, Maharashtra, raised funds of USD 4 Million by a clean energy-focused venture fund, Transition Venture Capital. Also, the Government of Tamil Nadu is proactively promoting EV adoption by identifying six cities including Chennai, Coimbatore, Trichy, Madurai, Salem, and Tirunelveli.
India's electric vehicle (EV) market is changing at a fast pace, fueled by a mix of government policies, changing consumer behavior, and increasing environmental consciousness. The competitive environment is becoming more dynamic, with several players entering the market to utilize new opportunities. The market witnesses entry from a combination of established automakers making the shift to EVs and new players dedicated solely to electric mobility. Competition is fierce in many segments, especially in two- and three-wheelers. Players distinguish themselves on battery technology, efficiency of range, and smart connectivity features. There is also increasing focus on localization and cost reduction to make the offering more affordable. Competition is expected to increase as charging infrastructure expands slowly, and consumer confidence improves. Companies are also venturing into strategic partnerships, supply chain integration, and after-sales models to position themselves in the market. Overall, the market is at a high-growth innovation stage with a significant impetus toward long-term sustainability.
The report provides a comprehensive analysis of the competitive landscape in India electric vehicle market with detailed profiles of all major companies, including:
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD, ‘000 Units |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
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Vehicle Types Covered | Passenger Vehicles, Commercial Vehicles, Others |
Price Categories Covered | Mid-Range, High/Luxury Range |
Propulsion Types Covered | Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-In Hybrid Electric Vehicle |
Regions Covered | North India, West and Central India, South India, East India |
Companies Covered | Ampere Vehicles Private Limited (Greaves Cotton Limited), Ather Energy Pvt Ltd, Atul Auto Limited, Bajaj Auto Limited (Bajaj Group), Electrotherm (India) Ltd., Hero Electric (Hero Eco Group), Hyundai Motor India Limited (Hyundai Motor Company), JBM Auto Limited, Mahindra Electric Mobility Limited (Mahindra & Mahindra Ltd), MG Motor India Pvt. Ltd (SAIC Motor Corporation Limited), Okinawa Autotech Pvt. Ltd, Olectra Greentech Ltd., Piaggio Vehicles Pvt. Ltd. (PIAGGIO & C. SPA), Tata Motors Limited (Tata Group), TVS Motor Company (Sundaram - Clayton Limited), VE Commercial Vehicles Limited, etc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
The electric vehicle market in India was valued at USD 2,360.97 Million in 2024.
The key factors driving the market include strong government incentives under FAME II, rising fuel prices, increased consumer awareness of environmental issues, advancements in battery technology, and growing investment in EV infrastructure. Additionally, state-level subsidies, urban pollution concerns, and the emergence of affordable EV models are accelerating market adoption across diverse vehicle segments.
The electric vehicle market in India is projected to exhibit a CAGR of 57.23% during 2025-2033, reaching a value of USD 1,64,420.39 Million by 2033.
Mid-range electric vehicles dominate the market due to balanced pricing, improved range, and eligibility for government subsidies, which makes them attractive to cost-conscious Indian consumers. Mid-range priced vehicles offer better features and performance than low-cost models while remaining affordable compared to premium EVs, thereby driving high adoption among both individual and fleet buyers.
Some of the major players in the India electric vehicle market include Ampere Vehicles Private Limited (Greaves Cotton Limited), Ather Energy Pvt Ltd, Atul Auto Limited, Bajaj Auto Limited (Bajaj Group), Electrotherm (India) Ltd., Hero Electric (Hero Eco Group), Hyundai Motor India Limited (Hyundai Motor Company), JBM Auto Limited, Mahindra Electric Mobility Limited (Mahindra & Mahindra Ltd), MG Motor India Pvt. Ltd (SAIC Motor Corporation Limited), Okinawa Autotech Pvt. Ltd, Olectra Greentech Ltd., Piaggio Vehicles Pvt. Ltd. (PIAGGIO & C. SPA), Tata Motors Limited (Tata Group), TVS Motor Company (Sundaram - Clayton Limited), VE Commercial Vehicles Limited, among others.