Indian electric vehicle market: MG's share approaches Tata's, with high-end SUVs and long-range models leading the battle

In the global wave of electrification in the automotive industry, the Indian market is demonstrating unique strategic potential. In the first half of 2025, the overall sales of passenger cars remained stable, while electric vehicle sales surged by 65.6% year-on-year, with a single - month penetration rate approaching 5%. This automotive market, once dominated by high cost - effectiveness, is entering a crucial stage of accelerated popularization of electric transformation and consumption upgrade.

Recently, a study on the Indian electric vehicle market by JATO Dynamics, a data and consulting service provider in the automotive industry, showed that in the first half of 2025, the overall sales of passenger cars in India reached 2.9 million, a slight year - on - year increase of 1.45%. During the same period, the sales of electric vehicles exceeded 87,000, a year - on - year surge of 65.6%, and the market share reached 3.2%. The single - month penetration rate in June rose to 4.9%, setting a new historical record. The wave of electric vehicles is changing the landscape of the Indian market.

Changing Brand Landscape: "Three - way Battle" Replaces Monopoly

The dividends of the growth in the Indian electric vehicle market have not been evenly distributed. Although Tata Motors, the former market leader, still leads with a 35% share, its market share has significantly declined compared with the same period last year. This is not only due to the decline in Tata's sales but also the result of more intense market competition.

Thanks to the strong performance of the MG Windsor model, MG Motor's market share in India has soared from 16.8% to 30%, significantly narrowing the gap with Tata. Mahindra, an Indian automaker, with its SUV series, has attracted both lifestyle - conscious users and high - end buyers, and firmly ranks among the top three with a 23.8% market share.

Among other brands, Hyundai's market share has significantly increased from 1.1% to 6.4% due to the launch of the Creta EV. BYD has achieved rapid growth from a relatively small base through models such as the Sea Lion 7/eMAX7, demonstrating its potential in the high - end market and niche segments.

Shifting Consumption Trends: Price Sensitivity Gives Way to "Range Anxiety"

The report points out that in the first half of 2025, the consumption focus in the Indian electric vehicle market has gradually shifted from "low price" to "long range" and "high performance". The high - end SUV market has achieved exponential growth. The sales of SUV products in the price range of 2.5 - 3 million rupees have skyrocketed by more than 2500%, and the top - end market above 3 million rupees has also increased by as much as 1500%. In sharp contrast, the mid - end SUV market in the 1.5 - 2 million rupee range has experienced double - digit decline, and the micro/small electric vehicle market below 1 million rupees has shrunk sharply by more than 60%.

Meanwhile, mid - to high - end hatchback products have increased the sales in the 1.5 - 2 million rupee price range, and MPV models have also seen triple - digit growth. The styles of Indian electric vehicle models are gradually diversifying.

The change in the market structure stems from consumers' urgent need for longer driving ranges. The study found that pure - electric models with a range of more than 500 kilometers are highly sought after, driving up the overall average price. The market share of the price range of 2 million rupees and above has soared from only 3% in the same period last year to 27% in the first half of this year.

Conversely, the market share of entry - level electric vehicles with a range of less than 300 kilometers and a price below 1 million rupees has sharply decreased from 22% to 7%. This reflects the increasing preference of Indian consumers for extended range. Long - range capability is becoming a key differentiating factor in the decision to purchase an electric vehicle. Alleviating "range anxiety" has become the primary driving force for the growth of the high - end market, surpassing "price sensitivity" in priority.

Fierce Competition Among Models: The Top Five Models Account for 68% of Sales

In addition to the preference for driving range, the trend of model integration in the market is also significant, and the market focus has clearly shifted to the high - end price segment: the sales in the 2.5 - 3 million rupee price range have increased by more than 1400%, and the top - end market above 3 million rupees has also soared by nearly 884%. At the same time, the mid - to low - end market below 1.5 million rupees has shrunk significantly, with the sales in the segment below 1 million rupees being halved, more than 50%. This structural change reveals that consumers' preferences have shifted from simply pursuing low prices to favoring high - quality products with more comprehensive functions and longer ranges.

This trend is also evident at the model level. The market concentration has significantly increased, and the top five best - selling models contribute 68% of the total sales. New high - end models represented by the MG Windsor and Mahindra XEV 9E have quickly captured market share, while the sales of most old - model vehicles, except for the Tata Nexon.ev, have declined. This highlights that the market demands new products that integrate innovative technology, excellent performance, and outstanding user experience, rather than simply relying on past reputations.

The Indian electric vehicle market is undergoing a profound consumption upgrade. The market driving force has shifted from meeting basic transportation needs to pursuing longer ranges, better performance, and better experiences. Looking ahead, with the expansion of charging infrastructure, the decline in battery costs, and government incentive policies, the Indian electric vehicle market is expected to continue to grow.

However, the mass market still faces severe challenges such as price sensitivity, import tariffs, geopolitical risks, and uneven coverage of the charging network. Competition in the electric vehicle market will become even more intense. International brands such as Tesla and VinFast are expected to join the battle in the second half of the year and compete head - on with BYD and others in the high - end market. For all market competitors, continuous breakthroughs in product strength and a good balance between technology, user experience, and performance are necessary to gain a foothold in the competition.

This article is from the WeChat official account "Automotive Market Insights", author: Zheng Li. Republished by 36Kr with permission.