India Electric Vehicle Market to Grow with a CAGR of 10.06% through 2031
Rising fuel prices, supportive government policies, and rapid
urbanization increasing demand for eco-friendly mobility solutions are the
factors driving the market in the forecast period 2027-2031.
According to TechSci Research report, “India Electric Vehicle
Market – By Region, Competition, Opportunities & Forecast, 2021-2031F”,
The India Electric Vehicle Market was valued at USD 6.16 Billion in 2025 and is
expected to reach USD 10.95 Billion by 2031 with a CAGR of 10.06% during the
forecast period.
India’s electric vehicle (EV) market is undergoing a structural
transformation, propelled by industrial investments, technology localization,
and a rise in public-private partnerships. The sector is witnessing rapid
vertical integration as automakers, component manufacturers, and energy firms
develop in-house capabilities for EV platforms, battery assembly, and
software-driven telematics. The launch of indigenous battery chemistries,
digital fleet management platforms, and AI-backed predictive maintenance
systems have made EVs more viable for commercial logistics, shared mobility,
and municipal services.
Another key transformation is the rise of regional EV manufacturing
clusters, particularly in Tamil Nadu, Maharashtra, and Gujarat. These hubs are
receiving significant inflows of capital from both domestic conglomerates and
international OEMs aiming to tap into India’s cost-efficient manufacturing
ecosystem. This has resulted in the emergence of tiered supply chains for
motors, controllers, battery cells, and thermal management components, reducing
dependency on imports and improving scalability. In addition, power utilities
and grid operators are coordinating with state transport departments to support
vehicle-to-grid (V2G) integration and energy storage use cases, thereby
deepening EV-market convergence with the power sector.
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India Electric Vehicle Market Is
Segmented by Range, Propulsion, Vehicle Type, and Region.
In 2025, electric
passenger cars became the fastest-growing segment in India’s EV market, driven
by strong uptake among middle-income households, cab aggregators, and fleet
operators. Wider model availability across price points, lower battery costs
due to domestic production, and rising interest in high-tech features like fast
charging and infotainment attracted first-time EV buyers. Government incentives
such as tax exemptions and low-interest loans improved affordability, while
better access to residential and highway charging reduced range anxiety.
Together, these factors pushed electric cars to lead in both sales volume and
value growth.
The Western region saw the
fastest EV adoption in 2025, led by proactive policies, dense charging
networks, and high consumer awareness. States like Maharashtra and Gujarat
stood out as EV hubs due to supportive infrastructure, incentives for
manufacturers, and tech-savvy buyers. Initiatives like solar-powered charging
and expressway corridors made daily and intercity EV use more practical,
positioning the West as a leader in mainstream electric passenger car adoption.
Major Market Players
Operating in India Electric Vehicle Market Are:
- Tata Motors Limited
- MG Motor India Private Limited
- Mahindra & Mahindra Limited
- PMI Electro Mobility Solutions Private Limited
- JBM Auto Ltd
- Hero Electric Vehicles Pvt. Ltd
- Okinawa Autotech Pvt. Ltd
- Greaves Electric Mobility Private Limited
- YC Electric Vehicle
- Saera Electric Auto Pvt. Ltd
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Battery swapping is emerging as an innovative solution to overcome challenges related to long charging times and range limitations. The model involves replacing a discharged battery with a fully charged one at a swapping station, significantly reducing downtime for vehicles. This approach is especially attractive for commercial users such as delivery services and e-rickshaws, where operational efficiency is critical. Battery swapping decouples the battery cost from the vehicle, lowering upfront purchase costs and simplifying ownership. Subscription-based models offer predictable operating expenses and easy access to well-maintained battery units. Standardization of battery formats and interoperability across vehicle types are being explored to support scaling. Battery swapping stations require less space and grid infrastructure compared to fast chargers, enabling deployment in dense urban areas. The model supports centralized battery maintenance and recycling, enhancing safety and sustainability”, said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based global
management consulting firm.
“India Electric Vehicle Market By Range (0-100 Km,
101-200 Km, above 200 Km), By Propulsion (BEV, HEV, PHEV, FCEV), By Vehicle
Type (Passenger Car, Commercial Vehicle, Two-Wheeler), By Region, Competition, Opportunities & Forecast, 2021-2031F”, assesses the market's future growth potential and
provides data on market size, trends, and forecasts. It aims to offer
comprehensive market insights, helping decision-makers make informed investment
choices. The report also highlights emerging trends, key drivers, challenges,
and opportunities in the India Electric Vehicle Market.
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