India’s electric vehicle (EV) market is experiencing a surge, with early-adopting states leading the way in sales. As of FY25, India recorded an impressive 1.96 million EV sales, marking a 7% penetration rate in the market. A recent report reveals that states such as Karnataka, Maharashtra, Uttar Pradesh, Delhi, and Tamil Nadu, which were quick to introduce EV policies, are seeing significant gains, posting sales figures that are twice as high as those from states that introduced EV policies later.
Karnataka, a pioneer in EV adoption, first introduced a dedicated EV policy in 2017, and by 2021, more than 15 states had followed suit. As of April 2025, this number has grown to 25 states, with each state tailoring its policy to suit local needs and capabilities.
Karnataka’s early adoption strategy has paid off, as the state has seen a sharp rise in the penetration of electric two-wheelers (e2Ws), and more recently, electric three-wheelers (e3Ws). The strong push from state-level policies, which often include subsidies, tax exemptions, and charging infrastructure development, has played a pivotal role in promoting EVs in these regions.
States like Maharashtra and Uttar Pradesh are following suit, with their policies capturing the attention of manufacturers and consumers alike. Industry experts note that the growth of EVs in public and private fleets has gained significant momentum, especially in these regions, as fleet operators seek more sustainable and cost-effective solutions.
Meanwhile, electric three-wheelers (e3Ws) are seeing the highest penetration in the EV market, especially in states with active policy implementation. This trend is further supported by the growing demand for affordable urban mobility solutions, where e3Ws are increasingly seen as an efficient alternative.
This push towards mainstreaming EVs is not limited to two and three-wheelers; the larger passenger vehicle market is also witnessing a slow but steady uptake, boosted by state incentives and growing environmental awareness among consumers. The shift to EVs across both public and private fleets signals a significant transformation in India’s transportation landscape.
With strong policy backing, and an increasing number of states implementing and enhancing their EV policies, the path ahead for electric vehicles in India looks promising. The country’s commitment to reducing its carbon footprint and promoting cleaner, greener alternatives continues to gain traction, as more consumers and businesses turn to electric vehicles as their preferred mode of transport.