Four-wheel electric vehicles (EVs) recorded MG Motor as the leading brand in registrations for July.

In July 2025, the electric vehicle (EV) market in India showed significant growth, with electric cars reaching a 4.6% share of total car sales for the first time[1]. This surge was driven by a variety of factors, including government policies, local manufacturing, and consumer demand.

BYD India registered 448 units that included the Atto 3, Seal, Sealion 7, and eMAX 7[2]. JSW MG Motor Pvt Ltd had the highest number of registrations with 4,602 units, including the Windsor and Comet models[2]. Tata Passenger Electric Mobility also registered a number of units that included Nexon, Punch, and Tiago[3].

Despite the growth, challenges persist. High acquisition costs, limited charging infrastructure, and range concerns are obstacles for electric car sales[4]. Moreover, the dominance of China in the supply of rare earth magnets essential for electric motors could potentially become a bottleneck[4].

However, India’s EV industry is adapting through a combination of supply diversification, increased domestic production capabilities, and government incentives such as the Electric Mobility Promotion Scheme extended through September 2025[1]. As of July 2025, over 25,000 public charging points were available, supporting broader EV adoption[1].

The market is also witnessing ongoing expansion. Tesla debuted the Model Y in India in July 2025, and Kia launched its first made-in-India Carens Clavis EV[2]. Upcoming launches by manufacturers like Volvo, Mercedes-Benz, Vinfast, and Mahindra in August 2025 further illustrate continuous momentum[5].

Pure electric vehicle four-wheeler motor car registrations increased by 12% in July 2025, reaching 11,778 units compared to 10,511 units in June 2025[6]. However, electric two-wheeler (e2W) registrations decreased by 3.50% in the same month[6].

It's important to note that electric two-wheelers account for nearly 60% of total EV sales[7]. Among the top five EV car manufacturers, JSW, Tata, and Hyundai reported a positive growth[8]. Mahindra and BYD saw a decline in registrations[2].

Poonam Upadhyay, Director of Crisil Ratings, expressed concerns about the sustainability of electric car sales[9]. Persistent rare earth magnet supply disruptions from China could impact the launches and production of these EV models[10]. However, industry-wide growth driven by battery technology advancements, including research into solid-state batteries, suggests future mitigation of material supply risks[3].

In conclusion, the outlook for electric car launches in India remains strong, with a growing domestic market and ongoing government support. Despite challenges, the industry is adapting and continues to expand, promising a positive outlook for new electric car launches in the near term.

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In July 2025, the growth of the electric vehicle market in India was marked, with a 4.6% share of total car sales, signaling a turning point in the industry.
Businesses like BYD India, JSW MG Motor Pvt Ltd, and Tata Passenger Electric Mobility registered significant units of electric cars, contributing to the market's expansion.
As the EV industry evolves in India, it faces challenges such as high acquisition costs, limited charging infrastructure, and range concerns, which need to be addressed for further growth.
To overcome these obstacles, the industry is adapting through measures like supply diversification, increased domestic production capabilities, and government incentives like the Electric Mobility Promotion Scheme.
The market is seeing ongoing expansion, as companies like Tesla, Kia, Volvo, Mercedes-Benz, Vinfast, and Mahindra launch new electric models, indication of continuous momentum in the sector.
While electric four-wheeler car registrations increased in July 2025, electric two-wheeler registrations decreased, signaling a shift in consumer preferences within the broader electric vehicle market.
Despite concerns over the sustainability of electric car sales due to rare earth magnet supply disruptions from China, industry-wide growth and advancements in battery technology, such as research into solid-state batteries, offer potential solutions for future material supply risks.

Four-wheel electric vehicles (EVs) recorded MG Motor as the leading brand in registrations for July.