The Indian electric vehicle (EV) market continued its upward trajectory in January 2025, with sales rising 17.1% year-on-year (YoY) and 19.4% month-on-month (MoM) to reach 1,69,931 units, according to data from the Federation of Automobile Dealers Associations (FADA). This surge was primarily driven by electric two-wheelers and passenger vehicles, while commercial vehicles and three-wheelers saw slower growth.

Key Contributors to EV Sales Growth

Major players like Ola Electric, Tata Motors, and Mahindra & Mahindra recorded strong sales figures in their respective segments. The reinstatement of government subsidies for electric cargo three-wheelers under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme further bolstered the market, leading to sales of 80,546 units in this category.

Future Outlook: India’s EV Market to Reach 9.3 Lakh Units by 2030

Industry experts project that India’s EV market will grow at a Compound Annual Growth Rate (CAGR) of 43%, reaching 9,32,000 units by 2030. The demand for Electric Sports Utility Vehicles (SUVs) is expected to account for 61% of the market, reflecting a shift toward larger electric vehicles.

The industry is set to witness over 30-35 new EV model launches in 2025, further accelerating growth. The Ministry of Heavy Industries' continued support, rising consumer acceptance of clean mobility, and increasing investments from Original Equipment Manufacturers (OEMs) are key factors shaping the sector’s expansion.

Conclusion: A Bright Future for India’s EV Industry

With government policies, technological advancements, and consumer demand aligning in favor of electric mobility, India’s EV market is on track for sustained growth. As companies continue to introduce new models and expand infrastructure, the industry is set to play a crucial role in the country’s clean mobility transition.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.