NewsStocksIndia's EV Market Surges in December 2025 as Supply Constraints Ease and Competition IntensifiesIndia's EV Market Surges in December 2025 as Supply Constraints Ease and Competition Intensifies
India's EV market demonstrated strong performance in December 2025 with e-2W segment growing 32.2% YoY and e-PV segment surging 63.3% YoY, driven by easing supply constraints and new model launches. Market share dynamics shifted significantly with Hero MotoCorp recording 890.8% growth and TVS Motor strengthening leadership to 25.7% share, while Ola Electric declined 34.6%. Commercial segments also posted robust gains with e-3W up 48.5% and e-CV surging 186.9%, supported by policy incentives and fleet demand.
*this image is generated using AI for illustrative purposes only.
India's electric vehicle market closed December 2025 with strong momentum across all segments, as supply constraints eased and fleet demand strengthened, according to a Choice Institutional Equities report. The broad-based growth highlighted an increasingly competitive landscape with sharp performance divergences among original equipment manufacturers.
Electric Two-Wheeler Segment Shows Robust Growth
The electric two-wheeler segment recorded healthy 32.2% year-on-year growth in December 2025, supported by normalised EV production following the easing of rare earth magnet supply constraints. However, individual company performances varied significantly across the competitive landscape.
| Company | YoY Growth | Market Share Dec 2024 | Market Share Dec 2025 |
|---|---|---|---|
| Hero MotoCorp | +890.8% | 1.5% | 11.0% |
| Ather Energy | +62.3% | 14.3% | 17.5% |
| TVS Motor | +44.4% | 23.5% | 25.7% |
| Bajaj Auto | +2.3% | 24.9% | 19.3% |
| Ola Electric | -34.6% | 18.7% | 9.3% |
Hero MotoCorp delivered the most impressive performance with 890.8% YoY growth, driven by strong demand, expanded dealership networks, and a favourable base effect. EVs now account for approximately 3% of the company's domestic sales. Ather Energy sustained strong momentum with 62.3% growth, backed by recent product launches across multiple price points and stable retail traction.
TVS Motor strengthened its market leadership position, increasing share from 23.5% to 25.7%, driven by strong demand for the iQube model and improving traction of the Orbitor. In contrast, Bajaj Auto reported modest 2.3% growth, reflecting its mature EV portfolio and disciplined channel inventory management approach.
Electric Passenger Vehicle Segment Accelerates
The electric passenger vehicle segment witnessed strong traction with volumes rising 63.3% YoY in December 2025, supported by new model launches and improving customer acceptance. Market dynamics shifted considerably among key players.
| Company | Dec 2024 Units | Dec 2025 Units | Market Share Change |
|---|---|---|---|
| Mahindra & Mahindra | 392 | 3,066 | 4.3% to 20.6% |
| Tata Motors | - | - | 45.7% to 43.3% |
| MG Motors | - | - | 41.5% to 23.9% |
| TTMT | 4,167 | 6,441 | - |
| Hyundai | 20 | 262 | - |
Mahindra & Mahindra recorded the most dramatic improvement, with volumes surging from 392 units to 3,066 units, driving market share nearly fivefold from 4.3% to 20.6%. This growth reflected successful ramp-up of new EV models. Tata Motors maintained market leadership despite seeing share decline from 45.7% to 43.3% amid intensifying competition.
MG Motors faced significant pressure with market share dropping from 41.5% to 23.9%, impacted by an ageing portfolio and heightened competitive dynamics. Hyundai demonstrated strong growth momentum, increasing volumes from 20 to 262 units year-on-year.
Commercial Vehicle Segments Post Strong Gains
Beyond personal mobility, commercial vehicle segments showed robust performance in December 2025. The electric three-wheeler segment posted 48.5% YoY growth, while electric commercial vehicles surged 186.9% YoY.
Several factors drove this momentum:
- Festive and replacement demand cycles
- Improved vehicle financing availability
- Sustained growth in last-mile delivery services
- Rising municipal and fleet orders
- Continued policy incentive support
Market Competition Set to Intensify
December 2025 marked a significant milestone with Maruti Suzuki's entry into the EV space through the launch of its first battery-electric SUV, the e-Vitara. Mahindra & Mahindra continued expanding its EV portfolio with higher deliveries of XEV and BE 6 electric SUVs.
The competitive landscape is expected to intensify further with Tata Motors planning launches of the Harrier EV and Sierra EV by end-FY26E, alongside new electric SUVs and mass market offerings from other manufacturers. The industry remains positioned for strong growth, supported by government incentives, continued OEM investments in battery manufacturing and localisation, and steady expansion of charging infrastructure across urban centres and highway corridors.
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