India’s EV Boom: From Petrol Pumps to Charging Stations
Last week, Prime Minister Narendra Modi launched the domestic production facility for hybrid battery electrodes at Maruti Suzuki Motor's Hansalpur plant in Gujarat. He also initiated the export of Maruti Suzuki's inaugural global battery electric SUV, the e-Vitara. This vehicle will be produced in India and exported to over 100 countries, including key markets such as European nations and Japan. The prices of petrol and diesel are rising globally.
In such a situation, it is natural for people to look for another alternative. Due to this, the electric vehicle industry is growing very fast in the world. People's interest is also increasing towards electric vehicles. Seeing this interest of the people, many companies have started making electric vehicles. India's auto industry is ready for a flood of electric vehicles in the coming few years. In fact, a new policy has been brought by the government to promote environment friendly mobility solutions. Due to this policy, big companies like Maruti Suzuki, Hyundai, Mahindra & Mahindra and Tata Motors are preparing to launch new electric models to meet the demand of customers in different segments. India aims to achieve a 30 percent EV sales share by 2030. Major automobile companies such as Maruti Suzuki, Hyundai, Tata, Mahindra, Kia and MG are preparing to enter the EV space or extend their existing EV product lineup in the coming years.
Nowadays, there is a discussion everywhere that the flood of electric cars has changed the trend of the market, but will this change be limited to vehicles only or will the face of the entire industry change? Will diesel-petrol vehicles remain just history or is there going to be some other big change in the automobile world? In 2025, the sale of electric cars in India has touched a new milestone. According to the report of the Federation of Automobile Dealers Association (FADA), more than 35,000 electric cars were sold in the country in the first quarter of 2025. In 2023, 82,000 electric cars were sold in the whole year, while in 2025 this figure has reached 1,10,748. This is about 4.5 percent of the total car sales. In April 2025, Tata Motors sold 4,436 electric cars, while MG Motor sold 5,829 units. Tata Motors has sold a total of 57,616 electric cars so far, which is 53 percent of the market. MG Motor sold 30,162 units (28 percent market share) and Mahindra sold 8,182 electric cars. Not only cars, but the entire electric vehicle segment has also seen tremendous growth. More than 20 lakh electric vehicles have been sold in India in 2025, which includes two-wheelers, three-wheelers and cars. A total of more than 61 lakh electric vehicles have hit the roads in the country so far.
The question is also what will happen to diesel and petrol vehicles? These vehicles will not be completely discontinued, but their sales are definitely declining. According to the Society of Indian Automobile Manufacturers (SAIM), sales of diesel cars declined by 10 percent in 2022-23 and this trend has accelerated further in 2025. In many cities, the crackdown on old diesel-petrol vehicles is increasing. Along with electric cars, the role of technology has also increased in the automobile industry. Now innovations like smart features, automatic drive, connected car technology are being seen in vehicles. Companies are focusing on changing not just the fuel type but the entire driving experience. Battery quality, charging speed and range are also constantly improving.
People now want not just cheap cars but smart, eco-friendly and future ready cars. The younger generation is more aware of the environment and also considers electric cars as a status symbol. The air pollution caused by emissions from electric vehicles is less than that of petrol and diesel vehicles. The options of financing and subsidy for electric vehicles have also increased in the market, making it easier to buy.
According to the report of the International Energy Agency (IEA), by 2030, 4 out of every 10 cars sold in India will be electric. New jobs, new technology and new business models will be seen in the automobile industry. Charging stations will replace petrol pumps and the servicing of vehicles will also change. Overall, diesel-petrol vehicles will not be completely out in 2025, but their dominance will definitely decrease. In the coming times, with the flood of electric cars, the entire game of automobiles is going to change. The growth in the electric vehicle sector is also bringing challenges for both the Indian automobile industry and the government. Economists from Imperial College London and the Sustainable Finance Group at the University of Oxford say in a study that the impact on India's existing automakers will vary. While some companies, such as Tata Motors, will benefit from making electric vehicles, others, etc., may suffer. But the broader problem lies in the fact that electric vehicles are fundamentally different from internal combustion engine (ICE)-based, i.e. petrol-diesel cars.
The production process for ICE cars is much more elaborate, where both value and profit are earned at different levels of the supply chain. The value addition for electric vehicles is more concentrated, for example in the production of batteries. This could have a significant impact on India's auto components sector. There are multiple, sometimes contradictory, impulses for the government. The first is undoubtedly protectionism, which needs to be overcome. Second, there is a natural need for low-carbon vehicles in the country to reduce local pollution and national emissions. This is why the government is not only offering incentives to EV buyers but has also imposed hefty duties on foreign EV imports.