2025 is set to redefine India’s electric vehicle (EV) ecosystem. With the surge in demand for electric two-wheelers and cars, India’s EV industry will grow at an exponential growth, thanks to favorable government policies, increasing consumer adoption, and expanding infrastructure. However, automakers must navigate several challenges to thrive in this evolving landscape.
Confused where to begin? Check out our Exclusive Growth Webinar – Growth Opportunities in an Emerging EV Hotspot: Why Now Is the Time to Invest in India’s Electric Vehicles Ecosystem. View the recording of this recent event to gain critical insights from industry leaders, as they unpack key strategies to overcome challenges and drive growth within India’s evolving EV ecosystem.
The session brought together leading Growth Experts from the domain:
Turab Khan
Growth Expert and Principal Consultant,
Frost & Sullivan
Prajyot Sathe
Growth Expert and Associate Director,
Frost & Sullivan
Click here to access the discussion’s recording.
Additionally, click here to explore our comprehensive Growth Analysis on India’s EV market, focusing on how to maximize competitive success in this expanding ecosystem.
During this event, our panelists identified key strategic imperatives and actionable insights for achieving long-term growth in India’s EV market. Here’s a glimpse:
Surging EV Penetration: As per Frost & Sullivan’s research, electric cars will account for 17-18% of total passenger vehicle sales in India. Among these, electric two-wheelers are expected to lead with a 50-60% market share, driven by last-mile connectivity and cost efficiency.
Growth of Two-Wheelers and Buses: India, as the second-largest two-wheeler manufacturer globally, is witnessing a rapid shift to electric models, accelerated by both legacy OEMs and startups. The electric bus segment is expected to reach 20% penetration by 2030, largely driven by government procurement and incentives.
- Localization Challenges: One of the major hurdles to India’s EV growth is the low localization of parts, resulting in higher costs. Automakers are focusing on value chain integration and local manufacturing to address this issue.
India’s EV Industry at a Glance:
- 63 Indian cities rank among the most polluted globally, prompting urgent action towards electrification.
- Key OEMs: Tata Motors, Mahindra & Mahindra, BYD, and MG Motor are leading India’s EV market expansion.
- Growth Drivers: Cost savings, lower emissions, government incentives, and increasing consumer interest in sustainable mobility.
– Charging Infrastructure: The current development of charging infrastructure needs to keep pace with the growing EV market. Tier-1 cities are leading the adoption, but expansion to Tier-2 and Tier-3 cities remains a critical growth area.
– Business Model Innovation: OEMs are exploring diverse business models such as battery-as-a-service, private leasing, and pay-per-kilometer models to make EV ownership more accessible and attractive to Indian consumers.
– Government Incentives and Market Dynamics: Government incentives are increasingly focused on supporting local manufacturing rather than direct consumer subsidies. Additionally, semiconductor manufacturing initiatives are expected to bolster the local EV supply chain.
Don’t stop here! The Growth Webinar addresses many more crucial factors that will help you consolidate your EV business strategy:
To access the free on-demand recording of this Growth Webinar, click here.
Additionally, click here to explore our comprehensive Growth Analysis on India’s EV market.
Expert’s Corner
[On the push towards 100% localization] “Government incentives are now heavily inclined towards local manufacturing, which is something expected to bring significant changes to the EV market.”
Prajyot Sathe
Growth Expert and Associate Director
Frost & Sullivan
