EVs to lead 2025 festive launches amid rare earth concerns
What's the story
India is gearing up for its busiest electric vehicle (EV) festive season in history, with a slew of launches expected between August and November. The line-up includes mass-market SUVs like the e-Vitara, Tata Sierra EV, and VinFast SUVs. Luxury brands are also joining the fray with models such as BMW iX 2025, Audi Q6 e-tron, and Mercedes-Benz CLA Electric.
Upcoming models
Production-ready Mahindra Vision S and SXT concepts expected
Mahindra's Vision S and SXT concepts are also moving closer to production. The two-wheeler segment will see new scooters and premium electric motorcycles, although mass-market e-motorcycles are still at least a year away. Nikhil Dhaka, VP at Primus Partners, said this festive window could be the heaviest EV launch season India has ever seen.
Market momentum
Record EV activity in H1 2025
The first half of 2025 has already witnessed a surge in EV activity in India, with global giants and domestic automakers gearing up for launches ahead of the festive season. Tesla's long-awaited debut with the Model Y in July set the tone, followed by mass-market entries such as Hyundai CRETA EV, Tata Harrier EV, Kia Carens Clavis EV, Hyundai VENUE EV, and Mahindra's BE 6 and XEV 9E.
Potential hurdles
Challenges for dealers and OEMs
Despite the momentum, industry stakeholders have flagged potential challenges. C.S. Vigneshwar, President of the Federation of Automobile Dealers Associations (FADA), said "EV penetration will grow only if raw material availability is secured," referring to rare-earth magnet supply concerns. Passenger vehicle EV penetration is currently estimated at 4-4.5%, while two-wheelers are at 5-7%. Analysts note that adoption is closely linked to new product launches, with penetration often plateauing after initial demand spikes.
Adoption challenges
Supply chain bottlenecks could hinder rare-earth magnet availability
Other barriers to EV adoption include reduced incentives, charging infrastructure gaps, and concerns over resale value. Regulatory pressure from stricter emission norms is pushing OEMs to invest. However, supply chain bottlenecks, especially in sourcing rare-earth materials, could delay festive-season rollouts. Kumar Rakesh, Analyst at BNP Paribas, said "Supply chain issues, especially rare-earth shortages, could slow down the pace we are expecting this festive season."