India's EV sales hit 2.3M units in 2025
What's the story
India's electric vehicle (EV) market has hit a major milestone, with total sales reaching 2.3 million units in 2025. The figure accounts for 8% of all new vehicle registrations, according to the Annual Report: India EV Market 2025 prepared by the India Energy Storage Alliance (IESA). The report highlights that policy support and festive demand have played a key role in this growth.
Market growth
EV sales surge driven by policy support
The IESA report shows a steady rise in EV adoption throughout 2025, backed by policy incentives and a festive-led surge in Q4. India's overall automobile market saw 28.2 million vehicle registrations last year, with two-wheelers leading the pack at over 20 million units (72% of total sales). Passenger cars crossed 4.4 million units while tractors and agri-vehicles surpassed 1.06 million units combined.
Market leaders
Electric 2-wheelers dominate India's EV market
Electric two-wheelers continued to lead the EV space with 1.28 million units sold, accounting for 57% of total EV sales. Electric three-wheelers (L3 and L5 combined) followed with 0.8 million units or a 35% share while electric four-wheelers recorded a sale of 1.75 lakh units in India last year. The report noted strong momentum in electric goods carriers, especially in small and light commercial vehicle segments under electric four-wheelers category.
State-wise performance
Uttar Pradesh leads in EV sales among Indian states
Uttar Pradesh emerged as the top-selling state for EVs in 2025 with over four lakh units sold, accounting for 18% of total sales. Maharashtra and Karnataka followed with 2.66 lakh (12%) and two lakh (9%) units respectively. Despite lower absolute vehicle sales, Delhi (14%), Kerala (12%), and Goa (11%) recorded higher EV-to-ICE ratios last year.
Policy impact
India completes largest-ever electric bus tender
The IESA report also highlighted a major policy development with the completion of India's largest-ever electric bus tender. Convergence Energy Services Limited (CESL) successfully completed a 10,900 electric bus tender under the ₹10,900 crore PM E-DRIVE scheme. The initiative is aimed at promoting green public transport and improving accessibility to clean mobility solutions across India.