New Delhi: India’s electric vehicle (EV) sales are projected to increase nearly 12-fold to 30.4 million units by 2032 under a high-growth National EV Target (NEV) scenario, driven by supportive policies, expanding product offerings and rising demand, according to a report by the India Energy Storage Alliance (IESA), ANI reported.
The report, prepared by Customized Energy Solutions, said annual EV sales are expected to grow from 2 million units in 2024 to 2.6 million units in 2025, marking an increase of about 26%.
EVs accounted for around 9.5% of India’s total vehicle sales in 2025, up from 8.1% in 2024, reflecting the country’s continued shift towards vehicle electrification.
Electric two-wheelers remained the largest segment, accounting for 60.1% of total EV sales in 2025, followed by electric three-wheelers at 31.6%. Together, the two categories contributed more than 91% of the nearly 2.5 million EVs sold during the year.
The report said electric four-wheelers increased their share to 7.7%, indicating growing consumer acceptance of electric passenger vehicles. Electric buses accounted for 0.2% of total sales, while trucks made up 0.4%, supported by government procurement programmes and fleet operators, ANI stated.
According to the report, higher fuel prices have improved the cost competitiveness of EVs, while a wider range of sport utility vehicles (SUVs) and new model launches have strengthened consumer interest and market visibility.
Battery demand is also expected to rise sharply alongside EV adoption. The report projected total battery demand to increase from 19 GWh in 2025 to 362 GWh by 2032. It said the widening gap between the business-as-usual (BAU) and high-growth NEV scenarios after 2029 would depend on the strength of policy support, charging infrastructure expansion and growth in domestic manufacturing.
Battery demand reached around 19 GWh in 2025, compared with 13 GWh in 2024, driven by higher sales volumes and larger battery pack sizes across vehicle segments.
Electric four-wheelers accounted for the largest share of battery demand at 40%, followed by three-wheelers at 27% and two-wheelers at 23%. Although electric buses represented only 0.2% of vehicle sales, they accounted for 7.8% of battery demand due to their larger battery packs. Electric trucks contributed 1.9% of total battery demand.
The report estimated India’s EV component market at ₹41,000 crore in 2025 and projected it to expand to ₹3.02 lakh crore by 2032 under the BAU scenario, representing a compound annual growth rate of about 38%.
Battery packs accounted for 52% of the component market in 2025, followed by motors at 22%, inverters at 12%, battery management systems (BMS) at 11% and DC-DC converters at 3%.
The report noted that localisation of motors and controllers in India remains at 30–40%, inverter supply chains continue to rely heavily on imports and battery management system hardware localisation is still behind software capabilities. It added that the projected ₹2.61 lakh crore expansion in the component market between 2025 and 2032 is expected to benefit companies that invest early in domestic manufacturing of power electronics and drivetrain technologies.
