India's electric vehicle (EV) market could see annual sales rise to 30.4 million units by 2032 under the high-growth National EV (NEV) scenario, according to a report by the India Energy Storage Alliance (IESA), prepared by Customized Energy Solutions.
The report estimated EV sales at 2.6 million units in 2025, up from 2 million units in 2024, reflecting a 26 per cent year-on-year increase. EVs accounted for 9.5 per cent of India's total vehicle sales in 2025, compared with 8.1 per cent a year ago.
Electric two-wheelers remained the largest segment, accounting for 60.1 per cent of total EV sales in 2025, while electric three-wheelers contributed 31.6 per cent. Together, the two segments accounted for more than 91 per cent of total EV sales during the year.
The report said electric four-wheelers increased their share of total EV sales to 7.7 per cent, indicating rising adoption of electric passenger vehicles. Electric buses and trucks accounted for 0.2 per cent and 0.4 per cent of total sales, respectively, supported by public procurement and fleet electrification.
Battery Demand Expands
Battery demand continued to grow alongside EV adoption and increasing battery pack sizes across vehicle categories. Total battery demand rose to around 19 GWh in 2025 from 13 GWh in 2024 and is projected to reach 362 GWh by 2032 under the NEV scenario.
Electric four-wheelers accounted for 40 per cent of battery demand in 2025, followed by electric three-wheelers at 27 per cent and electric two-wheelers at 23 per cent. Electric buses contributed 7.8 per cent of battery demand despite their limited sales share because of their larger battery packs.
Component Market Outlook
The report projected India's EV component market to grow from Rs 41,000 crore in 2025 to Rs 3,02,000 crore by 2032 under the Business-as-Usual (BAU) scenario, driven by rising EV adoption and localisation opportunities.
Battery packs accounted for 52 per cent of the component market in 2025, followed by motors at 22 per cent, inverters at 12 per cent, battery management systems at 11 per cent and DC-DC converters at 3 per cent.
The report said India's EV growth beyond 2029 will depend on the strength of policy support, expansion of charging infrastructure and progress in domestic manufacturing.
It noted that motor and controller localisation remains at 30-40 per cent, while inverter supply chains continue to be import-dependent and battery management system hardware localisation remains limited. According to the report, expanding domestic capabilities in power electronics and drivetrain technologies will be critical to supporting the next phase of EV growth. |
