India continues to lag behind several global markets in the share of electric cars as a percentage of new vehicle sales, despite government targets aimed at achieving 30% electric vehicle (EV) penetration by 2030 through multiple policy measures supporting electrification.

According to new data published by the International Energy Agency (IEA), electric cars accounted for 25% of all new cars sold globally in 2025. The Paris-based autonomous intergovernmental organisation reported strong global adoption of both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) during the year.

Against this global benchmark, electric cars represented only 4% of all new cars sold in India during 2025. Sales in the country remained concentrated among two manufacturers, Tata Motors and Mahindra & Mahindra, which together accounted for 60% of total electric car sales during the year.

However, India recorded a significant improvement in monthly EV penetration during April 2026. According to Vahan registration data, electric vehicles accounted for 5.8% of all new car sales in India during the month, compared with 5.1% in March 2026 and 3.7% in April 2025. The increase was supported by new model launches and rising consumer interest in electric mobility.

During the same period, the share of battery electric vehicles in new car sales in the United States declined to 5.1%. This allowed India to surpass the United States in EV penetration for the month of April, although the US continued to record substantially higher overall EV volumes due to its significantly larger passenger vehicle market. India remains the world's third-largest car market by volume, while the United States remains the second-largest after China.

In the US market, Tesla remained the leading EV manufacturer, followed by General Motors, Ford Motor Company, and Hyundai Motor Company. In India, Tata Motors Passenger Vehicles retained its position as the country's largest electric car manufacturer, recording a 92% year-on-year increase in retail sales during April. Mahindra & Mahindra ranked second, while JSW MG Motor India secured third place. VinFast and Maruti Suzuki India Limited also recorded sales during the month.

According to the IEA, electric car sales exceeded the 10% threshold in 23 countries in 2025, in addition to the European Union. Vietnam recorded one of the sharpest increases, with electric vehicles accounting for 41% of new car sales in 2025, compared with zero in 2020. Thailand reached 23%, Indonesia 15% from zero in 2020, South Korea 11%, and the Philippines 10%.

In Latin America, Brazil recorded EV penetration of 9%, while Mexico reached 7%, both remaining ahead of India's overall annual share. In Europe, Türkiye experienced rapid growth, with electric vehicle penetration increasing from 1% in 2022 to 20% in 2025.

Nepal also recorded strong growth, with electric cars accounting for 68% of new vehicle sales in 2025, compared with 10% in 2020. Norway remained the global leader, with EVs representing 97% of all new car sales, while China reached 53%. The United States exceeded the 10% mark in 2025, compared with 2% in 2020.

One of the major factors limiting EV adoption in India remains the availability of charging infrastructure. The IEA study ranked India second from the bottom among 17 countries in terms of the proportion of electric car owners with access to home-charging facilities. Only 55% of EV owners in India had access to home charging, compared with 80% to 90% in countries including Norway, Switzerland, and the United States.

The IEA further reported that India accounted for only a small share of the global public charging infrastructure network, while China alone represented 65% of global charging infrastructure. India's recent increase in EV penetration has also coincided with higher fuel prices linked to the West Asia conflict. Market expectations of rising fuel costs contributed to stronger consumer interest in electric vehicles.

Demand for EVs is expected to strengthen further following four fuel price increases implemented by state-run oil marketing companies during May. According to Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles, demand for Tata electric vehicles increased by 20% to 25% following the escalation of the West Asia conflict. Mahindra & Mahindra has also reported stronger EV demand during the period.