Invest Guide October 2025

Planet Earth at a Crossroads:

Planet Earth is facing unprecedented challenges from global warming and climate change. Greenhouse gas emissions from fossil fuels are heating our planet, causing erratic weather, melting ice caps, rising seas, and worsening air quality. In search of an alternative to petrol, diesel, and coal, many believe that electric vehicles (EVs) are a viable path forward. EVs offer the promise of lower emissions, reduced dependence on imported oil, and cleaner air in congested cities. In my opinion, EVs are among the most practical alternatives we have today. They're not perfect, but the momentum is building fast, and India is positioning itself to play a large role in this transformation.

India's Ambitious Economic Trajectory & Energy Investment -

India's economy is currently the fifth-largest in the world. By 2030, it is expected to be the third-largest, behind only the U.S. and China. To maintain this spectacular growth trajectory, the Indian government is courting investment in the country's energy sector exponentially, spanning power generation (including renewables), transmission, battery technology, charging infrastructure, manufacturing of EVs, and more. Policies such as the FAME (Faster Adoption and Manufacturing of Electric Vehicles) and PLI (Production Linked Incentives) schemes, with large budgetary allocations, are aimed at accelerating EV adoption.

The government also supports tax reductions, subsidies, and battery-swapping schemes to make EV ownership more accessible. Investments are flowing into battery technology, component manufacturing, software, and the ancillary ecosystem needed to support a large-scale EV transition. Such investments are critical not just for environmental goals, but for economic self-reliance- reducing import dependencies and creating jobs.

India's ev transition: 2025 checkpoint -

CPSEs have a capex target of ₹7.85 lakh crore in FY26. With H1 stable, H2 is likely to witness the traditional ramp-up. NHAI, NTPC, Rail Vikas Nigam Ltd., and Power Grid have indicated acceleration plans.

Demand & Adoption Trends -

• In FY 2024-25, India sold 1.97 million EV units across two-wheelers, three-wheelers, cars, buses, etc. This was a rise from 1.75 million in FY 2023-24.
• June 2025 alone saw 180,238 EV sales, up 28.6% year-on-year. Key highlights:
  • Electric passenger vehicle (e-PV) sales in June jumped 80% vs June 2024 to 13,178 units.
  • Two-wheelers grew 31.7% YoY, 3Ws (three-wheelers) 15.8% YoY, and e-commercial vehicles more than doubled.
• The auto industry projects battery-powered passenger vehicle production for 2025 will jump by 140% YoY to 301,400 units. That would be 6% of total passenger vehicle production in India (estimated 5.16 million units in 2025).

So demand is visibly accelerating, especially in lower-cost segments (2Ws, 3Ws), with passenger EVs catching up but still a smaller slice of the pie.

Infrastructure & Charging Network Status -

• Public charging stations have expanded rapidly: from around 5,151 in calendar-year 2022 to about 25,202 by the end of FY24, rising further to 26,367 in early FY25. That’s roughly a 5-fold increase from FY22 to early FY25.
• Despite this growth, there remains a large gap: as of early 2025, there is approximately one public charging station for every 235 EVs in India.
• Experts estimate that if India is to have 50 million EVs on the road by 2030, it will need 1.32 million charging stations.
• According to the IEA (Global EV Outlook 2025), the stock of public charging points in India is expected to rise from 75,000 at end-2024 to 375,000 by 2030 under current policy/planning(STEPS scenario).

Infrastructure & Charging Network Status -

India has a target of 30% EV penetration by 2030 in certain vehicle segments, particularly passenger cars. As of 2024, EVs accounted for 7.6% of total vehicle sales. The pace so far gets us partway there, but to hit 30% will require significantly steeper growth. Two-wheelers and three-wheelers are leading in penetration, while passenger cars lag. For example, EVs make up 5% of two-wheeler sales but a much smaller % for cars.

Strengths & Momentum: India's EV Push -

• Strong Policy Support
  Schemes like FAME, PM E-DRIVE, and Production Linked Incentive are powering EV adoption with subsidies, local manufacturing incentives, and charging infra support.
• Rising Domestic Manufacturing
  More EV models are hitting the market as automakers invest in local battery and component supply chains, especially for affordable segments.
• Charging Infra Expanding Fast
  Smaller states remain wary of near-term revenue losses from rate cuts, with states like Mizoram voicing apprehensions.
• High Demand in Smaller Segments
  E-2Ws, 3Ws, and commercial EVs are driving volumes thanks to lower prices, smaller batteries, and strong urban-rural utility.

Gaps & Risks That Could Stall the EV Boom -

• Inadequate charging infra
  1 charger per 235 EVs; rural & highway coverage still sparse.
• High upfront costs
  EVs remain pricier than ICE vehicles; price-sensitive buyers are deterred.
• Supply chain dependencies
  Heavy reliance on imported battery cells and raw materials.
• Grid readiness concerns
  Power demand will surge; clean, reliable supply must scale up.
• Policy implementation gaps
  Incentives and standards vary across states; execution often lags.

Popular EV-Related Stocks in India -

Regional Challenges

Kerala

EV registrations have dropped after the 50% road tax concession was revoked and home charging rules tightened. Higher upfront costs and difficulties installing home chargers in apartments have slowed adoption, with sales inquiries shifting to neighboring states.

Infrastructure Gaps

Despite growth, India still faces significant gaps in EV infrastructure, especially outside metro areas. Rural towns often lack public chargers, causing range anxiety. Private investment is growing, but regulatory support and grid upgrades are needed to ensure reliability.

Infrastructure Gaps

Despite growth, India still faces significant gaps in EV infrastructure, especially outside metro areas. Rural towns often lack public chargers, causing range anxiety. Private investment is growing, but regulatory support and grid upgrades are needed to ensure reliability.

Other States

While Maharashtra, Gujarat, and Karnataka experience strong adoption, states like West Bengal and Odisha lag behind due to limited incentives and inadequate infrastructure. Bridging these gaps is essential for a nationwide EV ecosystem and achieving India's 2030 targets.

Conclusion: India Poised to Lead the EV Revolution

India is moving rapidly toward an electric mobility future, with strong demand momentum, rising public and private investments, and expanding infrastructure - even if unevenly. Yet to achieve its ambitious 2030 goals (30%+ penetration in key segments, 50 million EVs on the road), it must accelerate the buildout of charging networks, drive down costs through local manufacturing and battery scale, strengthen the grid with cleaner power, and ensure consistent, efficient policies. If these gaps are bridged, India could not just be ready for the EV transition but also emerge as a global hub for innovation and manufacturing.