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The impact of increasing electric mobility adoption has started showing encouraging results. According to the Annual Report: India EV Market 2025, published by the India Energy Storage Alliance (IESA), electric vehicle sales touched 2.3 million units during the year. This is about 8 per cent of all new vehicle registrations, based on data from the Vahan Portal.

 

The report clearly mentions that EV adoption gained momentum throughout 2025. This increase in demand for EVs was due to proactive government policies, financial incentives, and a strong festive season push during the final quarter. The total number of EVs registered in 2025 stood at 28.2 million units, highlighting consistent demand across different automotive segments.

 

 

 

Like previous years, two-wheelers continued to dominate India’s automobile market, contributing over 20 million units, or 72 per cent of total vehicle registrations. Passenger four-wheelers crossed the mark of 4.4 million units, whereas tractor and agricultural vehicle registrations exceeded 1.06 million units, indicating stable demand in rural and commercial sectors. The overall vehicle sales showed steady growth from the first to the third quarter; the market witnessed a dynamic increase in the fourth quarter. The major attributes in this increase were year-end buying, festive demand, and GST-related benefits that encouraged consumers to advance their purchase decisions.

 

 

Electric two-wheelers emerged as the backbone of India’s EV growth, registering 1.28 million units and accounting for 57 per cent of total EV sales. Electric three-wheelers (L3 and L5) followed closely, with sales of 0.8 million units and a 35 per cent market share. Electric four-wheelers recorded approximately 1.75 lakh units during the year. Within the electric four-wheeler segment, the report noted strong growth in electric commercial vehicles, particularly small and light electric goods carriers. This trend signals early but promising progress in the electrification of India’s logistics and last-mile delivery ecosystem.

 

 

On a state-wise basis, Uttar Pradesh emerged as the leading EV market with over 4 lakh electric vehicle sales in 2025, contributing 18 per cent of national EV volumes. Maharashtra followed with 2.66 lakh units (12 per cent), while Karnataka crossed the 2 lakh mark (9 per cent). Together, these three states accounted for more than 40 per cent of India’s EV sales. Interestingly, states such as Delhi, Kerala, and Goa reported higher EV-to-ICE adoption ratios despite lower overall vehicle volumes. Northeastern states also demonstrated strong EV penetration, with Tripura and Assam recording notable adoption levels.

 

 

The report also highlighted a major development in public transport electrification, with Convergence Energy Services Limited (CESL) finalising the procurement of 10,900 electric buses under the Rs 10,900 crore PM E-DRIVE scheme. This initiative aims to accelerate green public transport across the country. IESA concluded that India’s EV ecosystem is well-positioned for sustained growth beyond 2025. Improving affordability, expanding charging infrastructure, and strong policy support are expected to further strengthen electric mobility adoption across vehicle segments.