India's passenger electric vehicle market is at an inflection point. Many OEMs announced their EV strategies and launched many new models in the first half of 2025. With increasing choices in the market, EV penetration showed an upward trend throughout H1 2025. Monthly penetration rates climbed from the early months to reach 4.9% by June 2025 - the highest monthly rate to date.
Tata Motors continues to lead the EV market in H1 2025 with a 35% share. However, this represents a 15% decline compared to last year's percentage. This shift is less about a drop in Tata's volumes and more about stronger competition from other OEMs.
MG Motors closed the gap with market leader Tata Motors, growing 196% to capture 30% market share compared to 16.8% in H1 2024. The MG Windsor drove most of these volumes.
Mahindra has emerged as the fastest climber into the top 3 with 23.8% market share, supported by the BE and XEV series SUVs, which target both lifestyle and premium EV buyers.
Hyundai's EV penetration has also risen sharply to 6.4% from just 1.1% in H1 2024, with the launch of Creta EV. However, Citroën lost market share by 50.9% to just 0.7%.
Premium-focused BYD continues to expand gradually in urban centres with the introduction of Sealion 7 and eMAX7, while one of the niche players – Kia - has become the fastest growing OEM in the segment with 1069.6% growth, with modest increase sales from 0.1% in H1 2024 to 0.6%.
EV sales momentum shifted strongly toward higher-priced SUVs. Premium SUVs showed exponential growth in H1 2025. The ₹25–30 lakh segment grew over 2,500%, while the >₹30 lakh segment surged 1,500%. In contrast, mid-range SUVs in the ₹15–20 lakh and ₹10–15 lakh bands declined by double digits.
The hatchback/micro EV segment under ₹10 lakh contracted sharply, down over 60%, while new mid- and high-priced hatchback entrants lifted volumes in the ₹15–20 lakh band. MPVs also saw triple-digit growth, albeit from a low base, signalling gradual diversification of EV body styles.
Increase in choices were evident, with 161 new version skewed towards higher price segment unlike H1 2024. Versions priced above ₹20 lakh expanded significantly, with notable jumps in both number of new versions launched and market share. The ₹25–30 lakh band grew over 1,400% in volume, while >₹30 lakh surged nearly 884%, reflecting rising demand for premium EVs.
Conversely, the sub-₹15 lakh segment contracted sharply, losing versions and share, with <₹10 lakh volumes down over 50%. This indicates a maturing market where consumer preference is moving toward feature-rich, long-range models despite higher price points.
Model wise consolidation is evident, with five top models achieving 68% of sales. New entrants like MG Windsor and Mahindra XEV 9E are driving momentum, swiftly gaining market share.
Older models show mixed results amongst top 10 volume brands — Tata Nexon.ev thrives, while Tata Tiago.ev, Tata Punch.ev, MG Comet and Tata Tigor.ev decline. Shifting consumer preferences highlight the need for innovation and refreshed offerings.
India's EV market saw a pronounced shift toward long-range and premium offerings. BEVs with ranges exceeding 500 km gained significant traction in H1 2025. This propelled the ₹20 lakh and above segment from just 3% in H1 2024 to a commanding 27% market share in H1 2025.
This surge underscores a growing preference among buyers for extended range signals that long-distance capability is becoming a key differentiator in EV purchasing decisions.
At the other end of the spectrum, entry-level BEVs priced under ₹10 lakh contracted sharply from 22% to just 7%, with offerings concentrated solely in the under 300 km range. This decline highlights the persistent challenges of affordability and limited range in the mass-market segment, which continue to hinder broader adoption.
India's EV market is entering a phase of heightened competition. New entries from Tesla and VinFast are expected to counter BYD head-on in premium segment in the second half of 2025. Rapid expansion of MG Windsor and Mahindra XEV 9e indicates the niche demand for EVs with good balance of technology, user experience and performance.
OEMs should note changing consumer preferences for eco-friendly vehicles that offer the latest technology and enhanced driving experiences. Consumers increasingly demand long-range EVs with fast charging capabilities to address range anxiety, while longer battery warranties enhance perceived reliability.
Several factors support EV market growth: expanding charging infrastructure, falling battery costs, and government incentives that help automakers develop better product strategies. However, price sensitivity, import duties, geopolitical uncertainties, and uneven charging access in many cities remain significant headwinds.
JATO Dynamics, founded in 1984, now has representation in over 51 countries around the world. We provide precision under pressure, providing the world’s most timely, accurate and up-to-date automotive information on vehicle specifications, pricing, sales and registrations for over 30 years. We offer more than just data, as we have watched the world change, and consumer mindsets alter with it we have been able to offer insights that help inform the industry. We are able to react to short-term market movements, plan for long-term developments and ultimately to meet the needs of our clients.
Nikhil Bhardwaj — Senior Consultant
Ashwin Amberkar — Market Analyst
ashwin.amberkar@jato.com