EV Industry Prediction: India’s Growth Outlook 2025
27 May 2025 · Sachin Gadekar
From policy push to private investment—how the EV ecosystem in India is set to transform mobility and wealth creation.

The EV Landscape: Where India Stands Today
The electric vehicle (EV) revolution is not just a global shift—India is charging ahead too. With rising environmental concerns, strong policy support, and increasing consumer adoption, the EV industry in India is poised for massive growth. For investors seeking future-focused opportunities, understanding this transition is key to unlocking value early.
Let’s explore what’s driving this revolution, key predictions for the EV industry by 2025, and how platforms like GetUltra are helping investors participate in this transformation.
India’s EV ecosystem is still in its early stages but is rapidly evolving:
EVs accounted for nearly 5% of total vehicle sales in FY 2023–24, a number expected to reach 15–20% by 2025.
Two- and three-wheelers dominate the current market, with electric scooters and rickshaws forming over 90% of total EV sales.
Major OEMs like Tata Motors, Ola Electric, and Ather Energy are leading the way, while global players like BYD and Tesla are eyeing India’s growing market.
Key Predictions for India’s EV Industry by 2025
1. Exponential Sales Growth
According to the International Energy Agency (IEA), India is on track to witness 10 million annual EV sales by 2030, and over 4 million by 2025. The steep rise will be driven by affordability, infrastructure growth, and regulatory mandates.
2. Battery Ecosystem Maturity
By 2025, India is expected to establish multiple gigafactories under the PLI (Production-Linked Incentive) scheme for advanced chemistry cell battery storage. This will reduce dependence on imports and bring down EV costs further.
3. EV Charging Infrastructure Boom
The number of public EV charging stations in India is projected to grow 5–10x by 2025. Urban hotspots, highways, and public parking zones will see dense charger penetration thanks to government-private partnerships.
4. Policy Push Will Intensify
FAME II subsidies, state-level EV policies, and reduced GST on EVs (5%) will continue to support the segment. More states are likely to introduce zero-registration fees and scrappage incentives for ICE vehicles.
5. Entry of Global Capital
India’s EV startups and infrastructure players will attract significant VC/PE investment, as clean mobility aligns with global ESG mandates. Expect more green bonds, infrastructure REITs, and debt platforms entering the scene.
What’s Driving the Growth?
Government Support
₹18,000+ crore allocated under FAME-II and battery PLI schemes
State EV policies in Delhi, Maharashtra, Tamil Nadu, and others
Incentives for EV manufacturing, charging infra, and R&D
Rising Consumer Awareness
Increasing fuel prices and climate concerns
Lower running costs and maintenance vs petrol/diesel
Resale value of EVs improving with rising demand
Local Manufacturing Push
Domestic EV components manufacturing growing rapidly
Localization of batteries, motors, and electronics underway
Global brands entering joint ventures with Indian firms
Investment Opportunities in the EV Ecosystem
Asset Class | Avg. Returns | Exit Liquidity | Key Benefit |
---|---|---|---|
Asset Leasing (EVs) | 10–12% p.a. | Medium | Steady cash flow via leasing to fleets |
Green Bonds | 8–9% p.a. | Medium | ESG-focused fixed income |
EV Infrastructure Funds | 12–15% IRR | Medium/Long | Capital appreciation via charging infra |
Private EV Startups | High risk | Long-term | Early equity in fast-growing ventures |
Should You Bet on India’s EV Future?
India’s EV story is not just about cleaner transport—it’s about building the next multi-billion dollar industry. Like telecom in the 2000s or fintech in the 2010s, EVs present a once-in-a-decade opportunity to align capital with long-term secular growth.
Benefits of Investing Early:
Participate in clean infrastructure
Hedge against carbon-heavy sectors
Leverage policy incentives
Boost portfolio ESG score
FAQs
Q1: Is the EV sector too risky for retail investors?
Not necessarily. While early-stage startups may carry risk, EV leasing and green bonds offer a safer path to participate in the EV boom.
Q2: Can NRIs invest in India’s EV-linked instruments?
Yes, several opportunities like listed green bonds, REITs, and regulated AIFs are available for NRIs. Platforms offer NRI-compliant onboarding.
Q3: What’s the ideal horizon for investing in EV assets?
Most EV opportunities (leasing, infra, private equity) have a 2–5 year horizon, though some like bonds or REITs can offer earlier liquidity.
Q4: Are there any tax benefits for investing in green mobility?
Yes. Instruments like green bonds may offer indexation benefits and lower tax on long-term gains. Some state subsidies may apply to EV leasing assets.