India’s electric vehicle market is expected to expand rapidly over the next six years, supported by favourable policies, rising consumer demand and growing localisation across the supply chain.
India’s electric vehicle (EV) market is projected to grow nearly 12-fold to 30.4 million units by 2032 under the National EV Target (NEV) scenario, driven by policy support, increasing consumer demand and widening domestic manufacturing, according to an India Energy Storage Alliance (IESA) report prepared by Customized Energy Solutions.
According to the report, annual EV sales rose from 2 million units in 2024 to 2.6 million units in 2025, representing an annual growth of about 26 per cent. EVs accounted for 9.5 per cent of total vehicle sales in 2025, up from 8.1 per cent in 2024.
Electric two-wheelers remained the largest segment with a 60.1 per cent share of EV sales, followed by electric three-wheelers at 31.6 per cent, while electric four-wheelers increased their share to 7.7 per cent, reflecting stronger passenger vehicle adoption.
According to Economic Times, the report said battery demand is likely to rise sharply from 19GWh in 2025 to 362GWh by 2032, supported by higher EV adoption and larger battery pack sizes. It added, “The widening gap between business-as-usual (BAU) and NEV scenarios post-2029 underscores that India’s EV trajectory will ultimately be determined by the strength of policy support, the pace of infrastructure buildout, and the momentum in local manufacturing.”
The study also projects India’s EV component market to grow from ₹410 billion in 2025 to ₹3.02 trillion by 2032, while noting greater localisation opportunities in power electronics, motors and drivetrain manufacturing.
