India’s electric vehicle sector is demonstrating significant growth, even amidst global challenges like China’s restrictions on the supply of rare earth materials. Sales data from January to July indicates a strong performance across all EV segments. This suggests that India’s EV market is relatively resilient to the effects of China’s export controls on rare earths, which are essential for EV production. China placed restrictions on rare earth magnet exports on April 4th. As the world’s leading exporter of rare earths, China’s policies have created supply chain issues for the EV industry. However, the Indian EV sector has navigated these challenges effectively.
Electric car sales in India show impressive numbers. A total of 90,639 units were sold by 14 different companies between January 1st and July 31st. This includes both domestic and international brands, and it represents a considerable increase compared to the 56,814 units sold during the same period last year. Moreover, the sales figures for this period are already at 91% of the total annual sales recorded in 2024 (99,634 units), indicating substantial growth.
The electric two-wheeler market is also performing well. From January to July 2025, sales reached 7,08,905 units, which constitutes 62% of the record 1.14 million units sold in 2024. Despite a 4% decrease in July 2025 sales, the overall trend remains positive, especially considering the extended period of double-digit growth. This data is based on figures available on the vehicle portal, current as of August 2, 2025.
The electric three-wheeler segment is also seeing positive results, demonstrating improvement over the previous year. Sales between January and July 2025 reached 4,30,845 units, representing a 14% increase compared to the 3,77,640 units sold during the same period in 2024. This segment has already achieved 62% of the 6,91,302 units sold in the record year of 2024.