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The Big EV Year That Wasn't
As India closes out 2025, the electric passenger vehicle sector stands at an inflection point, triggered by global entries and record demand, yet wrestling with structural challenges that have tempered the full-scale breakout the industry had hoped for.
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The year 2025 was supposed to be the year India’s electric passenger vehicle market hit full stride, a year packed with long-promised launches, rapid scale-up and a shift from early adoption to mainstream demand. While the year began with two global EV giants, Tesla and VinFast, finally entering the Indian market and Mahindra scaling up, overall EV car penetration remained low at around 4-5%.
This limited adoption, despite new model availability, is largely attributed to persistent challenges such as the high initial purchase cost compared to traditional internal combustion engine (ICE) vehicles and insufficient public charging infrastructure, which leads ...
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