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    India Electric Car Market Share

    ID: MRFR/AM/11159-HCR
    128 Pages
    Sejal Akre
    September 2025

    India Electric Car Market Research Report Information By Propulsion Type (Battery Electric Car (BEV) and Hybrid Electric Car (HEV)), By Drive Type (All Wheel Drive, Front Wheel Drive and Rear Wheel Drive), By Range (Up to 150 Miles, 151-300 Miles and Above 300 Miles) –Market Forecast Till 2034

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    India Electric Car Market Infographic
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    Market Share

    India Electric Car Market Share Analysis

    In the burgeoning landscape of India's electric car market, market share positioning strategies play a pivotal role in shaping the competitive dynamics among industry players. With a growing emphasis on sustainability and environmental consciousness, electric vehicles (EVs) have gained significant traction in recent years. One prevalent strategy involves targeting specific market segments, such as urban commuters or environmentally conscious consumers, to carve out a niche and establish a strong foothold. By understanding the unique needs and preferences of these segments, companies can tailor their offerings to effectively capture market share.

    Moreover, pricing strategies are crucial in determining market positioning. In a price-sensitive market like India, offering affordable electric vehicles can be a key driver for market penetration. Companies often leverage government incentives and subsidies to lower the cost of EVs, making them more accessible to a broader consumer base. Additionally, strategic partnerships with financial institutions to offer attractive financing options can further enhance affordability and drive sales volume.

    Furthermore, technological innovation plays a significant role in market share positioning. Companies that invest in research and development to improve battery efficiency, charging infrastructure, and vehicle performance can differentiate themselves in the market. By offering superior technology and features, they can attract tech-savvy consumers and gain a competitive edge over rivals.

    Distribution and marketing strategies also contribute to market share positioning in the electric car market. Establishing a robust distribution network, including dealerships, service centers, and charging stations, is essential for reaching customers across different regions. Moreover, effective marketing campaigns that highlight the benefits of electric vehicles, such as lower operating costs and reduced carbon emissions, can help build brand awareness and drive consumer demand.

    Additionally, collaborations with government bodies and industry stakeholders can be instrumental in shaping market share positioning strategies. Working closely with policymakers to develop supportive regulatory frameworks and infrastructure initiatives can create a conducive environment for the growth of the electric car market. Furthermore, partnerships with local manufacturers and suppliers can streamline production processes and reduce costs, enhancing competitiveness in the market.

    In summary, market share positioning strategies in the India electric car market encompass a holistic approach that encompasses segmentation, pricing, technology, distribution, marketing, and collaboration. By effectively executing these strategies, companies can strengthen their market position, capitalize on growth opportunities, and contribute to the advancement of sustainable mobility in India. As the electric car market continues to evolve, agility, innovation, and strategic foresight will be key drivers of success for industry players aiming to capture a larger share of this promising market.

    Market Summary

    The Global India Electric Car Market is projected to grow from 5.67 USD Billion in 2024 to 45.32 USD Billion by 2035.

    Key Market Trends & Highlights

    India Electric Car Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 20.8% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 45.32 USD Billion, indicating substantial growth potential.
    • In 2024, the market is valued at 5.67 USD Billion, reflecting the current investment landscape in electric vehicles.
    • Growing adoption of electric vehicles due to increasing environmental awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 5.67 (USD Billion)
    2035 Market Size 45.32 (USD Billion)
    CAGR (2025 - 2035) 20.8%
    Largest Regional Market Share in 2024 -)

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    Market Trends

    Lowering India's oil imports is driving the market growth

    India has been spending a lot of money importing crude oil to power its automobiles. About 80% of the oil used in India is imported, according to the Petroleum Planning and Analysis Cell (PPAC). This means that fluctuations in crude prices could have a negative impact on the exchequer and the economy. Reducing oil imports—a large portion of which is used to run vehicles will result from a drive toward the use of Evs.

    It would enable the government to reallocate these money to the construction of the nationwide infrastructure required to power electric cars, including capacity for producing batteries and charging stations. Furthermore, the country's need for electric cars is rising as a result of falling lithium-ion battery prices and the "Make in India" initiative's growing emphasis on homegrown manufacturing. In addition, the Indian electric cars market CAGR is anticipated to be driven in the upcoming years by the increasing integration of EVs with a number of cutting-edge technologies, including remote sensors, GPS navigation, anti-theft locking systems, etc.

    Additionally, the growth in electric vehicle manufacturing and sales is mostly due to government programs and subsidies. To encourage the use of electric car in the country, the Faster Adoption and Manufacturing of (Hybrid &) Electric cars (FAME) in India program was introduced in April 2015. Following that, in April 2019, the FAME-II scheme—which would have supported 55,000 e-passenger cars and charging stations was introduced with a budget cost of $1.3 billion (INR 10,000 crore). The Union Budget 2022–2023 indicated the government's extension of the program until 2024.

    The program is mostly applicable to cars registered for commercial use or utilized for public transportation, with a strong focus on providing accessible and environmentally friendly public transit to the general public. Moreover, Karnataka leads the list of states with the most participants in the scheme, followed by Tamil Nadu, Maharashtra, Rajasthan, and Delhi. This is likely due to the additional incentives offered at the state level. In May 2021, the government also introduced the manufacture-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage Manufacturing in an effort to reduce reliance on imports and encourage domestic battery manufacture.

    With the necessary infrastructure in place, this will help the Electric Vehicles business even more and drastically lower the price of electric cars. Thus, driving the India Electric Car market revenue.

    The Indian electric vehicle market is poised for transformative growth, driven by government initiatives and increasing consumer awareness of sustainable transportation options.

    Ministry of Heavy Industries and Public Enterprises, Government of India

    India Electric Car Market Market Drivers

    Market Growth Projections

    The Global India Electric Car Market Industry is poised for substantial growth, with projections indicating a market size of 5.67 USD Billion in 2024 and an anticipated expansion to 45.32 USD Billion by 2035. This growth trajectory is underpinned by a compound annual growth rate (CAGR) of 20.8% from 2025 to 2035. The increasing adoption of electric vehicles, driven by government policies, technological advancements, and changing consumer preferences, suggests a robust future for the industry. The market dynamics reflect a broader global trend towards sustainable transportation solutions.

    Growing Environmental Awareness

    Increasing environmental awareness among consumers is driving the Global India Electric Car Market Industry. As pollution levels in urban areas rise, more individuals are seeking sustainable transportation options. Electric vehicles are perceived as a cleaner alternative, contributing to reduced greenhouse gas emissions. This shift in consumer behavior is likely to accelerate the transition towards electric mobility, with projections indicating that the market could expand to 45.32 USD Billion by 2035. The growing emphasis on sustainability aligns with global trends, further enhancing the appeal of electric vehicles in India.

    Government Incentives and Policies

    The Global India Electric Car Market Industry is significantly influenced by government incentives and policies aimed at promoting electric vehicle adoption. The Indian government has implemented various schemes, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative, which provides financial subsidies for electric vehicle purchases. These incentives not only reduce the upfront cost for consumers but also encourage manufacturers to invest in electric vehicle technology. As a result, the market is projected to reach 5.67 USD Billion in 2024, reflecting the effectiveness of these policies in stimulating demand for electric cars.

    Rising Fuel Prices and Economic Factors

    Rising fuel prices are a significant driver for the Global India Electric Car Market Industry. As traditional fuel costs escalate, consumers are increasingly considering electric vehicles as a cost-effective alternative. The long-term savings associated with electric vehicle ownership, including lower operating costs and maintenance, make them an attractive option for budget-conscious consumers. This economic shift is likely to contribute to the market's growth, with projections suggesting a market size of 45.32 USD Billion by 2035. The interplay between fuel prices and electric vehicle adoption underscores the economic viability of transitioning to electric mobility.

    Infrastructure Development for Charging Stations

    The expansion of charging infrastructure is crucial for the Global India Electric Car Market Industry. The Indian government, along with private players, is investing in the development of charging stations across urban and rural areas. This infrastructure is essential for alleviating range anxiety among potential electric vehicle buyers. As charging networks become more accessible, consumer confidence in electric vehicles is likely to increase, thereby driving market growth. The establishment of a comprehensive charging ecosystem is expected to play a vital role in achieving the projected market size of 5.67 USD Billion by 2024.

    Technological Advancements in Battery Technology

    Technological advancements in battery technology are pivotal for the Global India Electric Car Market Industry. Innovations in lithium-ion batteries, such as improved energy density and reduced charging times, are enhancing the performance and affordability of electric vehicles. These advancements not only make electric cars more appealing to consumers but also support manufacturers in scaling production. As battery costs continue to decline, the market is expected to experience a compound annual growth rate (CAGR) of 20.8% from 2025 to 2035, indicating a robust growth trajectory driven by enhanced battery capabilities.

    Market Segment Insights

    India Electric Car Market Insights:

    Electric Car Propulsion Type Insights

    The India Electric Car market segmentation, based on propulsion type includes battery electric vehicles (BEV) and hybrid electric car (HEV). The battery electric car (BEV) segment dominated the India Electric Car market mostly. Advances in electric powertrain technology, such as increased torque and power output, are opening up new applications for battery electric vehicle (BEVs) in a variety of settings. The market for BEVs is also driven by rising government and automotive industry initiatives in India, the development of rapid and ultra-quick charging technologies, and growing consumer acceptance of BEVs because they are emission-free and produce less noise and vibration.

    Electric Car Drive Type Insights

    The India Electric Car market segmentation, based on drive type, includes all wheel drive, front wheel drive and rear wheel drive. The front wheel drive category generated the most income. This growth is explained by the vehicle's cost effectiveness. In general, front-wheel drive systems are less expensive to produce and maintain than all-wheel drive or rear-wheel drive systems. Customers may now purchase front-wheel drive vehicles at a lower cost, which is contributing to the expansion of the India Electric Car market.

    Electric Car Range Insights

    The India Electric Car market segmentation, based on range, includes up to 150 miles, 151-300 miles and above 300 miles. The up to 150 miles category generated the most income as a result of the popularity of electric vans and light trucks. Electric Vehicles adoption is still in its early stages. Segmental growth will therefore be fueled by the rising demand for electric automobiles.

    Figure 1: India Electric Car Market, by Range, 2023 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Get more detailed insights about India Electric Car Market Research Report—Forecast till 2034

    Regional Insights

    In India, the India Electric Car market has been steadily expanding. One of the main things pushing electric car sales is the rising cost of gasoline. Additionally, the Indian government is encouraging the usage of electric cars in an effort to lessen air pollution and support sustainable growth. In an effort to reduce reliance on fossil fuels and enhance air quality, electric cars are also being used in public transit. Furthermore, the nation's need for electric cars is being fueled by the expanding number of electric car charging stations.

    This is bolstering the market's growth, along with the addition of the internet of things (IoT) to electric car charging station systems, which helps consumers find nearby charging stations, find empty places, and arrange opportune times for fill-ups. 

    In addition, the Government of India is launching programs to offer various subsidies and financial help for the purchase of electric cars. Moreover, a growing number of ride-sharing businesses are using electric cars to provide their clients with quiet, environmentally responsible journeys. However, the government's implementation of favorable laws and programs contributed to the robust growth of electric cars in India in 2021. India's largest percentage of electric car sales in 2021 belonged to Uttar Pradesh. Along with Tamil Nadu (30,036 units) and Karnataka (33,302 units), the total number of units sold across all categories was 66,704.

    Key Players and Competitive Insights

    Leading India Electric Car market players are investing heavily in research and development in order to expand their product lines, which will help the e-vehicle market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, E-Car industry must offer cost-effective items.

    Key Companies in the India Electric Car Market market include

    Industry Developments

    The Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) held its tenth edition from May 16 to 18, 2024. The fair's exhibition space ranges from 50,000 sqm to 690 domestic and foreign exhibitors, and it features the latest achievements and trends in new energy vehicles, aftersales services, and connected mobility. A variety of peripheral activities are planned to boost talent development in support of the region's automotive industry's long-term development, with a focus on the growing role of industry and education integration.

    In April 2024, DENSO demonstrated expertise in idea development, software and hardware design, system engineering and integration, and testing and analysis. The company's growing array of smart mobility solutions and services demonstrates its commitment to providing seamless, sustainable, digital-first capabilities that improve the safety of people and commodities in transit. DENSO is a well-known supplier of OEM safety and communication technology. The company's cutting-edge networking products feature revolutionary infrastructure sensor technologies designed to reduce traffic congestion and collisions, improve car and pedestrian safety, and highlight emergency vehicles.

    Lumax Auto Technologies' aftermarket segment joined forces with German company Bluechem Group in the automotive car-care sector in February 2024. This cooperation will provide domestic clients with access to automotive car-care goods for cleaning, servicing, and maintenance across domains.

    In January 2024, Valeo expanded its R&D, manufacturing, and aftermarket operations in Tamil Nadu, India. Valeo's aftermarket business is expected to develop significantly as the company's distribution networks and service facilities in Tamil Nadu expand. Valeo intends to improve customer service by making its high-end automotive goods and services more accessible to the region's residents.

    In March 2024, Bosch introduced a suite of enhanced diagnostic tools designed specifically for the electric vehicle (EV) aftermarket. This comprises a new portable high-voltage (HV) module charger/discharger, an HV cell equalization, and a leak tester, all geared to meet the growing demand for efficient EV servicing. These tools are designed to optimize and manage high-voltage battery systems, which are a critical component of electric cars.

    Future Outlook

    India Electric Car Market Future Outlook

    The India Electric Car Market is poised for robust growth, driven by technological advancements and supportive policies, with a projected 20.8% CAGR from 2024 to 2035.

    New opportunities lie in:

    • Developing battery recycling solutions to enhance sustainability and reduce costs.
    • Investing in charging infrastructure partnerships to expand market reach.
    • Leveraging AI for smart vehicle features to improve user experience and safety.

    By 2035, the India Electric Car Market is expected to achieve substantial growth, establishing a strong competitive landscape.

    Market Segmentation

    India Electric Car Range Outlook

    • Up to 150 Miles
    • 151-300 Miles
    • Above 300 Miles

    India Electric Car Drive Type Outlook

    • All Wheel Drive
    • Front Wheel Drive
    • Rear Wheel Drive

    India Electric Car Propulsion Type Outlook

    • Battery Electric Vehicles (BEV)
    • Hybrid Electric Vehicles (HEV)

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024    4.56 (USD Billion)
    Market Size 2025    7.43 (USD Billion)
    Market Size 2034   600.27 (USD Billion)
    Compound Annual Growth Rate (CAGR)     62.90% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2034
    Historical Data 2019 - 2023
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Propulsion Type, Drive Type, Range, and Region
    Countries Covered India
    Key Companies Profiled BMW Group (Germany), Daimler AG (Germany), Toyota (Japan), Volkswagen (Germany), Renault Group (France), Ford Motor Company (U.S.), Mahindra & Mahindra (India), IATA motors (India), Hyundai (South Korea), MG Motors (U.K.), Ola Electric (India)
    Key Market Opportunities Continuously Dropping Electric Car Battery CostVarious Initiatives by Government of India
    Key Market Dynamics Increasing Need in the Area for Electric Micro-mobilityIncreased Fuel Cost

    Market Highlights

    Author

    Sejal Akre
    Senior Research Analyst

    She holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

    Leave a Comment

    Latest Comments

    John Doe

    This is a great article! Really helped me understand the topic better.

    Posted on July 23, 2025, 10:15 AM
    Jane Smith

    Thanks for sharing this. I’ve bookmarked it for later reference.

    Posted on July 22, 2025, 7:45 PM

    FAQs

    How much is the electric car market?

    The India Electric Car market size was valued at USD 4.56 Billion in 2024.

    What is the growth rate of the electric car market?

    The market is projected to grow at a CAGR of 62.90% during the forecast period, 2025-2034.

    Who are the key players in the electric car market?

    The key players in the market are BMW Group (Germany), Daimler AG (Germany), Toyota (Japan), Volkswagen (Germany), Renault Group (France), Ford Motor Company (U.S.), Mahindra & Mahindra (India), IATA motors (India), Hyundai (South Korea), MG Motors (U.K.), Ola Electric (India).

    Which propulsion type led the electric car market?

    The battery electric vehicle (BEV) category dominated the market in 2022.

    Which range had the largest market share in the electric car market?

    The up to 150 miles category had the largest share in the market.

    1. 'TABLE OF CONTENTS
      1. Definition
      2. Scope of the Study
        1. Research Objective
        2. Assumptions
        3. Limitations
      3. Overview
      4. Data Mining
      5. Secondary Research
      6. Primary Research
        1. Primary Interviews
    2. and Information Gathering Process
      1. Breakdown of Primary Respondents
      2. Forecasting Model
      3. Market Size Estimation
        1. Bottom-Up Approach
        2. Top-Down Approach
      4. Data Triangulation
      5. Validation
      6. Overview
      7. Drivers
      8. Restraints
      9. Opportunities
      10. Value Chain Analysis
      11. Porter’s Five Forces Analysis
        1. Bargaining Power of Suppliers
    3. Bargaining Power of Buyers
      1. Threat of New Entrants
        1. Threat of Substitutes
        2. Intensity of Rivalry
      2. COVID-19 Impact Analysis
        1. Market Impact Analysis
        2. Regional Impact
        3. Opportunity and Threat Analysis
    4. INDIA ELECTRIC CAR MARKET, BY PROPULSION TYPE
      1. Overview
      2. Battery Electric Car (BEV)
      3. Hybrid Electric Car (HEV)
    5. MARKET, BY DRIVE TYPE
      1. Overview
      2. All Wheel Drive
      3. Front Wheel Drive
      4. Rear Wheel Drive
    6. INDIA ELECTRIC CAR MARKET, BY RANGE
      1. Overview
      2. Up to
    7. Miles
      1. 151-300 Miles
      2. Above 300
    8. Miles
      1. Overview
      2. Competitive Analysis
      3. Market Share Analysis
      4. Major Growth Strategy in the India Electric Car Market
      5. Competitive Benchmarking
      6. Leading Players in Terms of Number of Developments in the India Electric Car Market
    9. Key developments and Growth Strategies
      1. New Product Launch/Service Deployment
        1. Merger & Acquisitions
        2. Joint Ventures
      2. Major Players Financial Matrix
    10. Sales & Operating Income, 2022
      1. Major Players R&D Expenditure. 2022
      2. BMW Group (Germany)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      3. DAIMLER AG (GERMANY)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      4. Toyota (Japan)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      5. Volkswagen (Germany)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      6. Renault Group (France)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      7. Ford Motor Company (U.S.)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
    11. Mahindra & Mahindra (India)
      1. Company Overview
        1. Financial Overview
        2. Products Offered
        3. Key Developments
        4. SWOT Analysis
        5. Key Strategies
      2. IATA MOTORS (INDIA)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      3. HYUNDAI (SOUTH KOREA)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      4. MG Motors (U.K.)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      5. Ola Electric (India)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      6. References
      7. Related Reports
    12. CAR MARKET, SYNOPSIS, 2018-2032 (USD BILLION)
    13. CAR MARKET, BY DRIVE TYPE, 2018-2032 (USD BILLION) (USD BILLION) LIST OF FIGURES
    14. SHARE (%), BY DRIVE TYPE, 2022 CAR MARKET: COMPANY SHARE ANALYSIS, 2022 (%) SNAPSHOT
    15. (FRANCE).: FINANCIAL OVERVIEW SNAPSHOT COMPANY (U.S.): FINANCIAL OVERVIEW SNAPSHOT MAHINDRA & MAHINDRA (INDIA): FINANCIAL OVERVIEW SNAPSHOT (INDIA): SWOT ANALYSIS
    16. KOREA): FINANCIAL OVERVIEW SNAPSHOT FINANCIAL OVERVIEW SNAPSHOT SNAPSHOT

    India Electric Car Market Segmentation

    Market Segmentation Overview

    • Detailed segmentation data will be available in the full report
    • Comprehensive analysis by multiple parameters
    • Regional and country-level breakdowns
    • Market size forecasts by segment
    Infographic

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