The increase in EV penetration is a testament to the increasing consumer confidence in EVs, according to a HMIL official
Electric car sales in India are growing at a faster pace as compared to hybrid cars, which have become stagnant over the last three years in terms of percentage growth.
According to data sourced from the industry, while the electric passenger car sales has grown 4.4 per cent between January and May, this year, the hybrid cars are stagnant at 2.5 per cent during this period, averaging even lower than last year’s 2.4 per cent.
In FY25, cumulative sales of zero-emission cars (EVs) including sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs) scaled a new high of 1,07,541 units, an increase of 18 per cent year on year compared with 91,320 units in FY24.
FY25 also marks the first time that this segment has achieved and surpassed the one lakh units milestone. But in terms of strong hybrid cars, the total sales was recorded around 82,700 units in FY25.
Currently, there are around 20 models of EVs that are sold in India by mass-market companies including Hyundai Motor India (Creta Electric, Ioniq5), JSW MG Motor (Comet EV, ZS EV, Windsor), Kia India (EV6, EV9), Mahindra & Mahindra (BE6, XEV 9E, XUV400), Tata Motors (Curvv.ev, Tiago.ev, Tigor.ev, Nexon.ev, Punch.ev, Harrier.ev), Citroen (EC3) and BYD India (Sealion, Seal, Atto 3, eMax 7).
Conversely, in terms of strong hybrid vehicles there are only three companies including Honda Cars India, Maruti Suzuki India and Toyota Kirloskar Motor, with limited portfolio.
Government policy
So, apart from availability of more models in the EVs segment, another reason for more EV penetration in the country is favourable policies adopted by the Centre as well State governments. For instance, the Centre levies 5 per cent GST on EVs compared with 43 per cent on hybrid cars.
On top of that, several States offer zero registration cost for EVs, since it is a State subject. Only Uttar Pradesh offers similar waiver to strong hybrid vehicles. According to experts, Karnataka and few other States are also considering providing similar waivers like Uttar Pradesh on hybrids.
Maruti Suzuki and Toyota have welcomed these moves by the States because they are betting big on hybrids, while pure-EV players such as Mahindra & Mahindra and Tata Motors are opposing them. Besides their commercial interests, they argue that it would not help the country achieve target of 30 per cent EV penetration (of the total vehicles sales) by 2030.
Government think-tank Niti Aayog has also said that EVs and hybrid vehicles are fundamentally different and thus cannot be incentivised at the same level. “They (EVs) are a different thing altogether. They have zero operational emissions; absolutely nothing. Hybrids, on the other hand, do have emissions, albeit lower ones. So, comparing hybrids and battery EVs would be wrong,” Sudhendu Jyoti Sinha, Advisor at Niti Aayog, recently told businessline.
Tarun Garg, Whole-time Director and Chief Operating Officer, Hyundai Motor India (HMIL), said, “The increase in EV penetration is a testament to the increasing consumer confidence in EVs, clarity in government policies, development of charging infrastructure and driven by a wave of new launches, including Creta Electric.”
He said HMIL is also setting up fast DC chargers across the highways to help customers charge on the move and prevent range anxiety.
“We plan to set up 600 Fast DC Chargers by 2032. Of this, 89 chargers are already operational. Also, we are providing 11 KW AC Home Charger with Creta Electric, which can charge the car in approximately four-five hours,” Garg added.
Published on June 25, 2025