India’s electric vehicle market is showing remarkable resilience, even as the global EV industry faces supply chain disruptions related to China’s rare earth element restrictions. In the first seven months of the year (January to July), India has witnessed significant sales growth across all EV segments. This surge in sales indicates that India’s EV sector is largely insulated from the impact of China’s restrictions on rare earths, which are crucial for EV production. China implemented export controls on rare earth magnets on April 4th. These magnets are essential components used in electric vehicles. As the world’s leading exporter of rare earths, China’s policies have affected global supply chains, but India has managed to navigate these challenges.
Electric car sales have been particularly strong. From January 1st to July 31st, a total of 90,639 electric cars were sold by 14 companies, including both Indian and international manufacturers. This represents a considerable increase compared to the 56,814 units sold in the same period the previous year. Furthermore, the current sales figures are already at 91% of the total annual sales recorded in 2024 (99,634 units), indicating a strong trajectory for continued growth.
The electric two-wheeler market has also experienced substantial demand. During the January to July 2025 period, sales reached 7,08,905 units, constituting 62% of the record 1.14 million units sold in 2024. Although a 4% decline was reported in July 2025 sales, following an extended period of double-digit growth, overall sales remain robust. This data is sourced from the vehicle portal and reflects figures available as of August 2, 2025.
In the electric three-wheeler segment, sales performance has improved compared to the previous year. Sales between January and July 2025 reached 4,30,845 units, representing a 14% increase over the 3,77,640 units sold during the same period in 2024. This segment has already achieved 62% of the 6,91,302 units sold in the record year of 2024.