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“India’s green energy and electric vehicle (EV) sectors have made substantial progress.”“>
The Indian EV industry witnessed a dip in funding in 2024, dropping to USD 586 million from USD 808 million in 2023. However, the number of deals closed remained steady at 44. Subsidies also saw changes with the introduction of the PM E-Drive Scheme, which gradually replaces the FAME-II program. Under this scheme, subsidies for electric two-wheelers are now based on battery power, with a fixed rate of ? 5,000 per kilowatt-hour (kWh) in the first year, capped at INR 10,000. There was a dip in overall sales growth as well in terms of percentage. EV sales in 2024 grew to over 1.9 million units—a 24.5% increase from 1.5 million units in 2023. However, this growth slowed compared to the 50% increase between 2022 and 2023, according to government data from the Vahan portal. However, the industry seems quite positive for the year ahead. Here’s what the industry players told ET.
Industry Insights: Expectations for 2025
Nitin Kapoor, Managing Director, SAERA Electric Auto Ltd
“The coming year will be pivotal, driven by advancements in battery technology, expanding charging infrastructure, and global policy support. We expect a surge in demand for electric three-wheelers and cargo vehicles, alongside deeper collaboration within the EV ecosystem to foster innovation and accessibility.”
Neehar Pathare, MD, CEO, and CIO, 63SATS
“EV growth brings unprecedented cybersecurity challenges, with vulnerabilities in chargers, autonomous systems, and connected technologies. The adoption of standards like UNECE WP.29 and proactive defenses will strengthen security. In India, government drafts mandating Cyber Security and Management Systems (CSMS) for OEMs mark a vital step forward.”
Nehal Gupta, Founder and MD, AMU
“Green finance in 2024 achieved double-digit growth, especially in tier-2 and tier-3 cities. With a projected CAGR of 30% for 2025, digital financing platforms and battery analytics will enhance affordability and accessibility. AMU plans to expand into five new states with over 10 branches.”
Ajay Rao, Founder and CEO, Emiza
“EV adoption in logistics will accelerate in 2025, driven by advancements in battery technology and sustainability demands. Electric vehicles will streamline last-mile delivery, reduce operational costs, and optimize routes using AI, paving the way for a greener supply chain.”
Deepak Pahwa, Chairman, Pahwa Group & MD, Bry-Air
“In July 2024, EV sales surged by 53%, hitting 179,000 units and surpassing the one-million-unit milestone. Advancements in Li-ion and solid-state batteries are crucial for overcoming challenges like range anxiety. Strong government policies and innovation will be vital for continued growth.”
Ashish Bagadia, Corporate Finance Partner, BDO India
“Segments like Vehicle-as-a-Service (VaaS) and Battery-as-a-Service (BaaS) made significant progress in 2024. Emerging markets for EV resale and battery recycling will gain traction in 2025. Traditional investors are showing increased interest, focusing on proven models with larger investments.”
Samarth Kholkar, CEO & Co-Founder, BLive
“India’s electric two-wheeler market has grown exponentially, with sales rising from 45,000 units in FY 2021 to nearly 950,000 units in FY 2024. By 2025, the market is expected to redefine mobility, driven by consumer demand and rapid advancements in charging infrastructure.”
On Logistics and Sustainability, he said, “Electric two-wheelers are playing a central role in last-mile delivery, with nearly 30% of new vehicles in 2024 being electric. Quick commerce is expected to grow 15-fold by 2025, further boosting EV adoption. Companies like Amazon and Flipkart are transitioning fleets to EVs, leveraging policy support and infrastructure advancements to meet sustainability goals.”
Kamlesh Kaushik, CEO of Mufin Green Infra
“India’s green energy and electric vehicle (EV) sectors have made substantial progress. The growth in renewable energy, particularly solar and wind, alongside the rapid acceleration in EV adoption, signals a major shift towards a more sustainable future for the country. In the EV sector, the expansion of charging networks and improvements in battery technology have created a more enabling environment for electric mobility. Additionally, solar energy has played a vital role in powering EVs and enhancing grid stability, demonstrating the seamless integration of these sectors. Looking ahead to 2025, we anticipate continued growth and momentum. As technology evolves and manufacturing capacities expand, we will focus on addressing key challenges like energy storage, grid modernization, and cost optimization. The outlook for the coming year remains promising, with expectations of enhanced economic opportunities, job creation, and a substantial reduction in carbon emissions.”
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The Indian EV industry experienced a funding decline to $586 million in 2024, and EV sales growth slowed. However, industry leaders are hopeful for 2025 due to technological advances, improved infrastructure, and supportive government policies. They expect increased collaboration and innovations, making EVs more accessible and sustainable.
“India’s green energy and electric vehicle (EV) sectors have made substantial progress.”“>
The Indian EV industry witnessed a dip in funding in 2024, dropping to USD 586 million from USD 808 million in 2023. However, the number of deals closed remained steady at 44. Subsidies also saw changes with the introduction of the PM E-Drive Scheme, which gradually replaces the FAME-II program. Under this scheme, subsidies for electric two-wheelers are now based on battery power, with a fixed rate of ? 5,000 per kilowatt-hour (kWh) in the first year, capped at INR 10,000. There was a dip in overall sales growth as well in terms of percentage. EV sales in 2024 grew to over 1.9 million units—a 24.5% increase from 1.5 million units in 2023. However, this growth slowed compared to the 50% increase between 2022 and 2023, according to government data from the Vahan portal. However, the industry seems quite positive for the year ahead. Here’s what the industry players told ET.
Industry Insights: Expectations for 2025
Nitin Kapoor, Managing Director, SAERA Electric Auto Ltd
“The coming year will be pivotal, driven by advancements in battery technology, expanding charging infrastructure, and global policy support. We expect a surge in demand for electric three-wheelers and cargo vehicles, alongside deeper collaboration within the EV ecosystem to foster innovation and accessibility.”
Neehar Pathare, MD, CEO, and CIO, 63SATS
“EV growth brings unprecedented cybersecurity challenges, with vulnerabilities in chargers, autonomous systems, and connected technologies. The adoption of standards like UNECE WP.29 and proactive defenses will strengthen security. In India, government drafts mandating Cyber Security and Management Systems (CSMS) for OEMs mark a vital step forward.”
Nehal Gupta, Founder and MD, AMU
“Green finance in 2024 achieved double-digit growth, especially in tier-2 and tier-3 cities. With a projected CAGR of 30% for 2025, digital financing platforms and battery analytics will enhance affordability and accessibility. AMU plans to expand into five new states with over 10 branches.”
Ajay Rao, Founder and CEO, Emiza
“EV adoption in logistics will accelerate in 2025, driven by advancements in battery technology and sustainability demands. Electric vehicles will streamline last-mile delivery, reduce operational costs, and optimize routes using AI, paving the way for a greener supply chain.”
Deepak Pahwa, Chairman, Pahwa Group & MD, Bry-Air
“In July 2024, EV sales surged by 53%, hitting 179,000 units and surpassing the one-million-unit milestone. Advancements in Li-ion and solid-state batteries are crucial for overcoming challenges like range anxiety. Strong government policies and innovation will be vital for continued growth.”
Ashish Bagadia, Corporate Finance Partner, BDO India
“Segments like Vehicle-as-a-Service (VaaS) and Battery-as-a-Service (BaaS) made significant progress in 2024. Emerging markets for EV resale and battery recycling will gain traction in 2025. Traditional investors are showing increased interest, focusing on proven models with larger investments.”
Samarth Kholkar, CEO & Co-Founder, BLive
“India’s electric two-wheeler market has grown exponentially, with sales rising from 45,000 units in FY 2021 to nearly 950,000 units in FY 2024. By 2025, the market is expected to redefine mobility, driven by consumer demand and rapid advancements in charging infrastructure.”
On Logistics and Sustainability, he said, “Electric two-wheelers are playing a central role in last-mile delivery, with nearly 30% of new vehicles in 2024 being electric. Quick commerce is expected to grow 15-fold by 2025, further boosting EV adoption. Companies like Amazon and Flipkart are transitioning fleets to EVs, leveraging policy support and infrastructure advancements to meet sustainability goals.”
Kamlesh Kaushik, CEO of Mufin Green Infra
“India’s green energy and electric vehicle (EV) sectors have made substantial progress. The growth in renewable energy, particularly solar and wind, alongside the rapid acceleration in EV adoption, signals a major shift towards a more sustainable future for the country. In the EV sector, the expansion of charging networks and improvements in battery technology have created a more enabling environment for electric mobility. Additionally, solar energy has played a vital role in powering EVs and enhancing grid stability, demonstrating the seamless integration of these sectors. Looking ahead to 2025, we anticipate continued growth and momentum. As technology evolves and manufacturing capacities expand, we will focus on addressing key challenges like energy storage, grid modernization, and cost optimization. The outlook for the coming year remains promising, with expectations of enhanced economic opportunities, job creation, and a substantial reduction in carbon emissions.”
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