Forging Ahead Without Fossil Fuels: India's Unique Stride Towards Electrical Transportation
India's electric vehicle (EV) market is experiencing a significant shift, with two-wheelers and three-wheelers leading the charge towards electrification.
Two-Wheelers at the Forefront
Two-wheelers account for over 75% of all registered vehicles in India and are becoming increasingly electrified. This transition is driven by several factors, including lower costs, lighter weight, and shorter range requirements. As a result, electric scooters and motorcycles are widely available, with domestic manufacturers expanding their model ranges and cutting prices.
Three-Wheelers Following Close Behind
Three-wheelers, particularly electric rickshaws, are also rapidly electrifying. In some states and cities, they make up a majority of sales in their category. Experts predict that three-wheeler electrification will reach saturation in the early 2030s.
Slow but Steady Growth in Four-Wheelers
The growth in electric four-wheelers, including passenger cars, is accelerating but at a slower pace compared to two- and three-wheelers. Electric cars accounted for about 11% of fiscal 2025 EV sales, with overall EV penetration in passenger vehicles at just 2.7% during FY25. However, sales are rising rapidly, with passenger electric car sales climbing from roughly 4,700 units annually a few years ago to nearly 100,000 units in 2025, and Q1 2025 showing a 45% year-on-year growth in electric car sales.
Government Support and Infrastructure Expansion
The Indian government is providing significant support to the EV market through schemes like FAME-II and PM E-DRIVE. These initiatives aim to expand charging stations nationally and improve affordability, creating jobs and stimulating domestic manufacturing. As a result, public charging infrastructure has quadrupled since 2023, reaching over 24,000 stations by mid-2025.
However, challenges remain, including non-functional chargers and fragmented payment systems. Nevertheless, states like Karnataka, Kerala, and Punjab have full fast-charger coverage, and 91% of national highway stretches are covered by fast chargers within 50km.
The Road Ahead
India's EV market size reached approximately $54 billion in 2025 and is projected to double by 2029, with a CAGR near 19.4%. The government aims to achieve 30% EV sales penetration by 2030, up from 7.6% total EV penetration in 2024. This ambitious target implies a steep ramp-up in adoption over the next five years.
While the tipping point for two- and three-wheelers may be here or very close, the same cannot be said for cars and buses. However, the slope of the curve could steepen rapidly once affordability and infrastructure align.
By 2030, electric two-wheelers could be the majority of new sales, three-wheelers could be close to full electrification, and electric cars might approach 20-30% of new sales in leading states. By 2040, India could see electric cars as a majority of new sales, and its entire two- and three-wheeler fleets electric.
Consistency in policy is crucial in determining how quickly tipping points arrive in India's electric vehicle market. With the right policies and investments, India could leapfrog other nations in the global race to electrify transportation.
- Several electric vehicles (EVs) newsletters highlight the rapid electrification of two-wheelers in India, as they account for over 75% of all registered vehicles and domestic manufacturers are expanding their model ranges.
- Home charging solutions for electric cars are still growing at a slower pace compared to two- and three-wheelers, with passenger electric cars accounting for about 11% of fiscal 2025 EV sales.
- In the realm of lifestyle and technology, podcasts discussing the shift towards electric vehicles often touch upon the widespread availability of electric scooters and motorcycles in India.
- Policy initiatives like FAME-II and PM E-DRIVE aim to promote EV adoption by expanding charging infrastructure and improving affordability, with over 24,000 charging stations nationwide by mid-2025.
- As the need for sustainable transportation becomes increasingly evident, experts predict that electric cars could overtake traditional vehicles in India by 2040, provided the government maintains consistency in its EV policies and investments.
