Indian automakers gear up for EV surge in 2025 amid global slowdown
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Despite a global slowdown in electric vehicle (EV) demand, Indian carmakers are ramping up efforts to expand the country's EV market in 2025.
With plans to launch nearly a dozen new electric car models, many targeting the premium segment, automakers are focusing on offering longer driving ranges and faster charging to attract buyers.
India's electric vehicle market remains small, comprising about 2.5% of the 4.3 million cars sold in 2024, but it is growing steadily. High vehicle prices and a limited charging network have slowed adoption, but government initiatives and stricter emission norms, effective from 2027, are pushing automakers toward cleaner vehicles.
The government's goal is to increase EV sales to 30% of all car sales by 2030.
At India's upcoming five-day auto show in New Delhi, electric vehicles will take center stage, with new models from companies like Vietnam's VinFast, domestic brands such as Maruti Suzuki and Mahindra & Mahindra, and global players like BYD, Toyota, and Hyundai. Tata Motors and JSW-MG Motor, two of India's leading EV manufacturers, will unveil expanded line-ups, aiming to capture a larger share of the market.
While global EV sales growth slowed to 13% in 2024, India’s EV sales rose 20%, with approximately 100,000 units sold. Analysts predict that the introduction of new models with longer ranges and faster charging times could drive further demand, with EV sales potentially doubling in India this year.
Historically, India's EV market has been driven by converted gasoline cars with a range of up to 300 kilometers per charge. However, the new wave of EVs is designed from the ground up, with ranges of 400 kilometers or more. Mahindra’s upcoming electric SUVs, for example, offer ranges exceeding 600 kilometers and charge from 20-80% in under 20 minutes.
Prices for these new models range from $22,000 to $35,000, with premium models gaining more traction than affordable ones. Meanwhile, VinFast, a newcomer to the Indian market, will display its mini-SUV VF3 and three-row MPV VF9. The company is also building a car factory in southern India, seeing the country’s growing middle class as a key focus for its expansion.
Hyundai will showcase its electric Creta SUV, which is expected to compete with rivals, while BYD will present its Sealion 7 electric SUV. Maruti, India’s largest carmaker, will debut its first EV, the e Vitara SUV, jointly developed with its parent company Suzuki Motor and Toyota.
Additionally, some automakers will feature other alternative fuel technologies such as plug-in hybrid, flex-fuel, and hydrogen fuel cell vehicles, demonstrating a comprehensive approach to electrification.