India EV Sales To Surge 12X To 30 Million Units By 2032: Report

India's electric vehicle sales are projected to grow 12-fold to 30.4 million units by 2032 under a high-growth scenario, claims a new report from the India Energy Storage Alliance (IESA), prepared by Customized Energy Solutions.

Annual sales of electric vehicles rose from 2.0 million units in 2024 to 2.6 million units in 2025, a jump of about 26 per cent. EVs accounted for 9.5 per cent of total vehicle sales in India in 2025, up from 8.1 per cent in 2024.

The IESA report attributes the growth in electric vehicle sales to higher fuel prices improving EV cost competitiveness, alongside expanding electric SUV offerings and new product launches. The report projects that the gap between its Business-as-Usual and high-growth NEV scenarios widening sharply after 2029.

Beyond that point, the report claims that India's EV trajectory will depend on the strength of policy support and the pace of charging infrastructure rollout. Local manufacturing momentum will also weigh heavily on how closely actual sales track the high-growth NEV scenario, the report states.

EV Sales by Vehicle Segment in 2025

India's EV sales in 2025 were led by electric two-wheelers at 60.1 per cent, followed by electric three-wheelers at 31.6 per cent. Together, the two categories made up more than 91 per cent of the roughly 2.5 million EV units sold.

Electric four-wheelers grew their share to 7.7 per cent, reflecting rising consumer adoption of electric passenger vehicles. Electric buses and trucks together contributed to under 1 per cent of total EV sales in 2025, supported mainly by public procurement programmes and fleet operator commitments.

Battery Demand Set To Scale Sharply

The report claims that battery demand in India is projected to rise from 19 GWh in 2025 to 362 GWh by 2032, driven by higher EV adoption and larger average pack sizes. Total battery demand had grown from 13 GWh in 2024 to 19 GWh in 2025.

Four-wheelers led battery consumption in 2025 at 40 per cent, ahead of three-wheelers at 27 per cent and two-wheelers at 23 per cent. Buses accounted for a disproportionately high 7.8 per cent share due to the larger pack sizes used in electric bus fleets.

India's EV Component Market

India's EV component market was valued at Rs 41,000 crore in 2025 and is projected to reach Rs 3,02,000 crore by 2032 under the BAU scenario. This is a compound annual growth rate of approximately 38 per cent.

Battery packs formed the largest share of the component market in 2025 at 52 per cent, followed by motors at 22 per cent. Inverters, battery management systems and DC-DC converters made up 12 per cent, 11 per cent and 3 per cent, respectively.

Localization Gap in Power Electronics

The report notes that motor and controller localization in India currently stands between 30 and 40 per cent. Inverter supply chains remain heavily dependent on imports, and battery management system hardware localization continues to trail behind software capability. The report added that the Rs 2,61,000 crore expected to be added to India's EV component market between 2025 and 2032 will mainly benefit manufacturers that build strong domestic capability in power electronics and drivetrain integration before demand picks up.