India's EV sales doubled in June (YoY), 5% of new vehicles sold were EV

New Delhi, July 7, 2025 — India’s electric vehicle (EV) market hit a significant milestone in June 2025, with EV sales doubling year-on-year (YoY) and electric vehicles accounting for 5% of all new vehicles registered across the country. According to data from the Ministry of Road Transport and Highways’ Vahan portal, over 1.5 lakh EVs were sold last month, compared to approximately 75,000 units in June 2024.

This sharp uptick reflects not only a growing environmental consciousness among consumers but also the cumulative impact of government incentives, improved infrastructure, and wider model availability across two-, three-, and four-wheeler segments.

Segment-Wise Performance: Two-Wheelers and Three-Wheelers Lead the Charge

The EV boom in June was largely driven by strong performance in the two-wheeler and three-wheeler categories. Electric scooters and bikes accounted for over 55% of total EV sales, driven by increased urban adoption and low operating costs.

Electric three-wheelers, which form the backbone of last-mile urban transport, also saw robust demand. Several states like Uttar Pradesh, Bihar, and Delhi led the three-wheeler EV surge, reflecting state-level subsidies and fleet conversions.

Passenger electric cars, while growing at a slower pace, still saw significant traction, thanks to popular models like the Tata Nexon EV, Mahindra XUV400, and MG Comet EV. Commercial electric four-wheelers, especially in logistics and urban delivery segments, also contributed meaningfully to the total.

Policy Push and Infrastructure Improvements Bolster Confidence

The Indian government’s sustained push through policies like FAME II (Faster Adoption and Manufacturing of Electric Vehicles) and state-level subsidies has played a vital role in driving adoption. Subsidies on electric two- and three-wheelers, reduced GST, and registration fee waivers have made EVs more cost-competitive.

Infrastructure developments are also making a tangible difference. Over 12,000 public charging stations are now operational across major cities, and key highways are being equipped with fast chargers. The government’s Production-Linked Incentive (PLI) schemes for advanced chemistry cell battery manufacturing and EV component production have further strengthened the domestic ecosystem.

Analyst View: Inflection Point Reached, More Upside Ahead

Analysts view June's performance as a potential inflection point in India's EV transition.

"This 5% penetration is not just a psychological milestone — it’s a validation of EVs becoming mainstream," said Ravi Batra, auto analyst at Emkay Global. "Given the rise in crude oil prices and consistent regulatory tailwinds, we expect EV penetration to reach 10% of monthly new sales by mid-2026."

Meera Ghosh, senior mobility researcher at CRISIL, noted, "With OEMs launching budget-friendly EVs and expanding battery swapping networks, particularly in tier-2 and tier-3 cities, the adoption curve is steepening rapidly."

Automakers Capitalize on Momentum

Major automakers like Tata Motors, Mahindra Electric, and Ather Energy witnessed record-breaking months in June.

• Tata Motors, India's largest EV car maker, saw EV sales grow 81% YoY.

• Ather Energy reported over 16,000 units sold, helped by its new 450 Apex model and expanded retail network.

• Ola Electric, prepping for its IPO, clocked over 35,000 units, further cementing its lead in the e-scooter segment.

International players like MG Motor and BYD India are also ramping up localization efforts, indicating strong long-term commitment to the Indian market.

Challenges Remain: Rural Penetration and Charging Access

Despite the optimism, certain challenges continue to temper the industry's ambitions. High upfront costs for EVs — even with subsidies — remain a barrier for many rural consumers. Moreover, although urban centers are seeing improved charging infrastructure, charging deserts in non-metro areas persist.

Battery recycling and grid load management are emerging as policy priorities, given the environmental and energy implications of mass electrification.

Investor Outlook: EV-Focused Stocks and Ancillary Plays in Focus

The stock market has already started to reflect this EV enthusiasm. Shares of Tata Motors, Olectra Greentech, and Sona BLW Precision Forgings have seen gains in anticipation of continued growth in EV volumes.

"EVs are now a secular investment theme in India. Ancillary sectors — battery makers, software integrators, charging infra companies — are poised to benefit just as much," noted Aman Puri, equity strategist at Kotak Institutional Equities.

Brokerages have increased price targets on several auto and energy companies with high EV exposure, projecting strong earnings visibility over the next 2–3 years.

The Road Ahead

India’s ambitious target of 30% EV penetration by 2030 seems increasingly within reach. While much ground remains to be covered in rural adoption and supply chain localization, June 2025’s numbers point to a robust structural shift in the automotive sector.

The next wave of growth is expected to come from:

• Affordable EV launches under ₹10 lakh

• Battery-as-a-service (BaaS) models

• Increased EV financing access

• Green hydrogen integration in heavy-duty transport

As automakers, startups, policymakers, and investors align, India’s EV journey is clearly shifting gears — and June 2025 could well be remembered as the month when the EV revolution went from promise to performance.