India’s electric vehicle (EV) sector is charging ahead at an unprecedented pace, with Frost & Sullivan’s newly released report, called “India EV Outlook 2025 & Beyond” providing key insights into how the nation is poised to become a global EV manufacturing hub by 2030.
Launched at the Entrepreneur India EV 2025 Summit on June 29, 2025, this forward-looking report maps out critical trends, policy shifts, and technological advancements that are transforming India's EV ecosystem.
Let’s explore the key highlights from the report.
India’s EV Sales to Grow 40% in 2025
According to the report, India’s passenger EV sales are set to grow by ~40% in 2025, reaching 138,000 units. By 2030, this number is expected to hit 700,000 units annually, a sign of the sector’s growing maturity and consumer confidence.
Recent data backs this up with India's EV start-ups collectively raised over $2.1 billion in FY25, more than doubling compared to the previous year, according to Tracxn. This funding surge highlights investor confidence in long-term EV growth.
BEVs & SUVs Continue to Dominate
Battery Electric Vehicles (BEVs) continue to lead the Indian passenger EV space. Subcompact and compact SUVs are driving most of the demand, with Tata Motors maintaining a leadership position through its Nexon EV, Tiago EV, and Punch EV models.
Meanwhile, Hero MotoCorp has launched the Vida VX2 electric scooter, aimed at urban and semi-urban youth — a strategic move in expanding EV penetration beyond four-wheelers.
Policy Support & Global Interest Growing
India’s evolving policy framework is a cornerstone of its EV success. The FAME II scheme, Production-Linked Incentive (PLI) for Advanced Chemistry Cell (ACC) manufacturing, and PM eBus Sewa are shifting the focus from direct incentives to long-term capacity building.
Recent import duty reforms in 2025 have opened the gates for global OEMs like Tesla and VinFast to set up shop in India in a move expected to foster competition and drive innovation.
Localization & Make-in-India Drive
India has the potential to achieve over 80% localization of EV components (excluding battery cells), which can significantly reduce costs and encourage exports. The report notes that domestic manufacturing of motors and battery packs has grown 50% since 2022, boosting self-reliance.
OEMs are actively exploring tariff engineering, local R&D, and strategic B2B partnerships to secure key raw materials and build resilient EV supply chains.
Charging Infrastructure Scaling Up
With over 25,000 public EV chargers installed nationwide, India is rapidly expanding its charging ecosystem. The Frost & Sullivan report projects a ratio of 1 charger for every 5 EVs by 2030, aligning with global best practices.
This expansion is essential to support the 34% year-on-year EV sales growth reported in Q2 2025, per Mercom India.
Shared Mobility & Commercial EV Adoption
Shared mobility companies like Lithium Urban are expected to contribute to 40% of EV fleet demand by 2030, signaling a strong commercial use case for EVs. Furthermore, urban fleets, ride-hailing platforms, and last-mile logistics are accelerating EV adoption in metros.
Next-Gen Tech: Batteries, 800V Architecture & Recycling
India is entering a new phase of EV technology development. The report highlights:
- 800V EV architecture for faster charging and better performance
- Sodium-ion and solid-state batteries in the R&D pipeline
- Battery recycling and circular economy initiatives gaining traction
This is crucial in reducing India’s reliance on imported lithium and cobalt, and building a greener, closed-loop system.
Challenges Ahead: Raw Materials & R&D
Despite rapid progress, India faces challenges in battery cell production, sourcing critical materials, and alternative chemistries like sodium-ion and LFP. Strengthening the upstream supply chain and investing in advanced battery R&D are top priorities.
Frost & Sullivan concludes that India is well-positioned to become a global EV hub by the end of the decade. Success will depend on:
- Robust charging infrastructure
- Tech-driven cost reduction
- Localization of core components
- Strong public-private partnerships
- Export-oriented assembly lines
The vision aligns with India’s commitment to sustainability, Atmanirbhar Bharat, and global competitiveness in clean mobility.
The EV Moment is Now
With supportive policies, enthusiastic investors, and active OEM participation, India’s EV market is not just growing, it's transforming. The 2025 report serves as both a roadmap and a call to action for stakeholders across the value chain.
As India continues to electrify its roads, the opportunity to lead the global EV revolution has never been more real.
