The Indian car market 2025 is witnessing big shifts, with electric vehicles gaining traction while ICE cars continue to hold their ground. Both national and international brands are contributing to this dynamic space. Beyond just launches, one key factor shaping the future is the growth of EV infrastructure in India, which will play a decisive role in how quickly adoption accelerates. the year’s end.
THE EV MOMENTUM
The EV market has seen a positive response by consumers with over 1 lakh EVs sold within almost 8 months. The top sellers are MG, Tata, Mahindra and JSW. The government has also seemed to be interested in uplifting the EV market in India as the government has been providing PM E-Drive scheme, effective since 2024. This 10,900Cr initiative has been helpful in accelerating in the adoption of EVs and building an infrastructure for the EV consumers and the market as well.
THE CONSUMER’S CHOICE?
The consumer market has been a spectrum for the Indian car manufacturers as the market is divided in to the ease of driving an EV and the long-lasting trust on the internal combustion engines. The Indian market has been mostly relied on the petrol and diesel vehicles for a long time. Unlike other countries like USA, India has not been an easy market for the EVs. Especially when it comes to the trust, reliability and wide network, the EVs still has a lot of space to grow and improve.
However, since the Indian manufacturers like Tata and Mahindra have shown their potential in their electric line-up, consumers have been giving chance to the EVs to create their space in the Indian market.
EV vs ICE sales!
The competition among both the categories is still something that is gradually increasing, where EVs and Hybrids have managed to make their space alongside the ICE cars.
MOST POPULAR VEHICLES:
| Fuel Type | Units sold | Market share | USP |
| Petrol | 24,84,331 | 57.5% | Affordability |
| CNG | 8,38,546 | 19.4% | Surpassed diesel |
| Diesel | 7,73,303 | 18% | Strong in SUV segment |
| Hybrid | 1,04,800 | 2.4% | Growing market |
| EV | 1,15,716 | 2.7% | Growing market |
So far this year the ups and downs we’ve seen consist the consumer’s gradually increasing interest in the Hybrid and EV category, and the competition within the ICE powertrains itself. The petrol is still considered the most valuable purchase as the diesel has been slowly limited to a few set of cars i.e., SUVs and Pickups. The CNG has however surpassed in diesel in terms of sale. The diesel category has been affected due to being offered in limited set of products and the more innovation in the CNG vehicles. Example being Tata’s new I-cylinder technology that seems like the car is not even CNG, where previously the CNG cars has to compromise the boot space, it the case anymore. Providing boot space like a normal petrol and diesel car and mileage that competes to both the petrol and diesel, the CNG has surely made a place for itself among the average Indian consumer.
Let’s see what to expect from the upcoming launches and how they affect the upcoming year. Stay tuned and follow up for more such updates.