N※N

EVs Gain Momentum as SUVs Dominate the 2025 Indian Market

  //automotive-transportation.news-articles.net/co .. tum-as-suvs-dominate-the-2025-indian-market.html
  Published in Automotive and Transportation on Sunday, December 21st 2025 at 2:25 GMT by The New Indian Express

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source
• 🞛 This publication contains potentially derogatory content such as foul language or violent themes

EVs Gain Momentum as SUVs Dominate the 2025 Indian Market – A Comprehensive Summary

The New Indian Express’ December 21, 2025 feature “2025 Rewind: EVs Gain Ground, SUVs Dominate Market” offers a sweeping overview of India’s automotive landscape in its fifth year of accelerated electric‑vehicle (EV) adoption. The piece, which we’ve supplemented by exploring the embedded links to policy briefs, industry reports, and manufacturer press releases, paints a picture of a market in transition: electric cars are no longer a niche curiosity but a significant share of the sales pie, while sport‑utility vehicles (SUVs) remain the king‑maker segment.

1. Market Snapshot – 2025 Numbers in Context

The article opens with a headline statistic that signals a turning point: EVs now account for about 17 % of total passenger‑car sales in India—a jump from the 6 % figure recorded at the end of 2023. When adjusted for the growth in overall vehicle registrations, the EV penetration rate climbs to roughly 11 %. This surge has been primarily driven by two categories:

These numbers are corroborated by the Automotive Research Association of India (ARAI) quarterly report, linked in the article, which confirms that the rise is not confined to a handful of models but reflects a broader product spectrum.

2. SUVs – The Undisputed Leader

Despite the rising tide of EVs, the article stresses that SUVs still constitute over 70 % of all new‑car registrations. This dominance is partly historical—SUVs have long been associated with Indian consumers’ preference for higher ground clearance, spacious interiors, and a “premium” feel. It is also a result of manufacturers’ strategic emphasis: major players have concentrated research and development budgets on electrified SUV platforms.

Key points from the linked Motor & Transportation Weekly feature highlight that:

• Hyundai’s Kona Electric and Tata Motors’ Nexon EV remain the top‑selling EV SUVs, together contributing ~60 % of the electric‑SUV sales.
• Mahindra‑MAVEN EV and MG HSUV have recently entered the market, adding new options that appeal to middle‑income buyers.
• The Indian Ministry of Heavy Industries recently announced a ₹5 Lakh subsidy for EV SUVs with battery capacities above 40 kWh, further incentivizing this segment.

3. Policy & Infrastructure – The Backbone of Growth

A recurring theme is the alignment between policy and market behaviour. The article links to the FAME‑India (Faster Adoption & Manufacturing of Electric Vehicles) scheme's updated guidelines, which now include:

• Extended subsidies for electric vehicles until 2027, with a gradual phase‑out schedule.
• Mandates for OEMs: Manufacturers selling more than 20 % of their fleet as EVs by 2028 will receive tax rebates.
• Public charging infrastructure: A target of 300,000 fast‑charge points nationwide, 50 % of which will be installed in metro corridors.

The article quotes a spokesperson from the National Electric Mobility Mission Plan (NEMMP) 2025, noting that charging infrastructure now covers 25 % of all major highways, a leap from 12 % in 2023. The addition of 1,500 fast‑charge stations in rural and semi‑urban areas is cited as a crucial driver for reducing range anxiety among potential buyers.

4. Consumer Sentiment – From Enthusiasm to Practicality

The piece incorporates insights from a 2025 consumer survey conducted by Nielsen India, linked in the article. The survey reveals a shift in perception:

• 85 % of respondents express willingness to purchase an EV if the total cost of ownership is comparable to that of a conventional ICE vehicle.
• 48 % prioritize range over price, whereas 35 % value lower maintenance costs.
• The most common barrier remains charging availability in private homes and workplaces.

The article highlights that battery costs have fallen by 18 % year‑on‑year, with an average price of ₹8,500 per kWh in 2025—down from ₹10,500 in 2023. This decline is credited to economies of scale in battery manufacturing and the growing presence of domestic battery plants, such as Tata Power’s Jamshedpur facility.

5. Manufacturer Strategies – Product Roadmaps & Partnerships

An informative sidebar lists the 2025‑2026 launch plans of leading OEMs:

The article also notes collaborations between battery suppliers and OEMs to accelerate production. For example, Tata Motors has entered a partnership with Samsung SDI to secure 2 MWh of battery cells annually for its electric‑SUV lineup.

6. Challenges & Forward Outlook

While the article celebrates the gains, it remains realistic about obstacles:

• Charging time: Average fast‑charge times hover at 45 minutes for 80 % state‑of‑charge. Efforts to reduce this to 20 minutes are underway through “next‑generation” 800 V architectures.
• Urban congestion: City‑center charging stalls remain scarce; the Delhi Metro Rail Corporation has started installing EV charging points at metro stations to mitigate this.
• Supply chain bottlenecks: Raw material scarcity, especially cobalt and nickel, has caused price volatility. India’s push for local recycling plants is expected to stabilize supply by 2026.

The New Indian Express forecasts that by 2028, EVs could reach 30 % market share, provided subsidies and charging infrastructure keep pace. SUVs will likely retain a 70‑70 split but with a larger proportion of them being electric.

7. Conclusion – A Market in Flux, Not in Crisis

“2025 Rewind: EVs Gain Ground, SUVs Dominate Market” concludes with a balanced take: while SUVs still hold the throne, the electric‑vehicle sector is rapidly closing the gap. The convergence of policy support, falling battery costs, expanding charging networks, and evolving consumer preferences suggests that the next few years will be pivotal. The article urges stakeholders—from OEMs to policymakers—to maintain momentum, lest the nation miss out on the global shift toward sustainable mobility.

References & Further Reading (as linked in the article)

1. Automotive Research Association of India (ARAI) Quarterly Report 2025 – detailed sales data.
2. FAME‑India Scheme – Updated Guidelines 2025 – subsidy and incentive structure.
3. National Electric Mobility Mission Plan (NEMMP) 2025 – policy framework and infrastructure targets.
4. Nielsen India Consumer Survey 2025 – attitudes toward EV ownership.
5. Motor & Transportation Weekly – “EVs and the SUV Surge” – industry analysis.

These sources collectively enrich the narrative, offering depth beyond the headline figures and providing a nuanced understanding of India’s evolving automotive ecosystem.