Archive · 25 Jun 2025
India's Electric Vehicle Sales Surpass Hybrid Growth Amidst Policy Shift
More people in India are buying electric cars than hybrid cars.
Electric car sales have increased a lot, while hybrid car sales haven't changed much recently.
The government is helping by making EVs cheaper with lower taxes and registration fees.
Many companies are selling electric cars, but there are fewer choices for hybrid cars.
Some companies think the government should also help hybrid cars, while others disagree.
Basically, electric cars are becoming more popular because they are getting easier and cheaper to own.
EV sales in India are growing faster than hybrid car sales.
EV sales increased 18% YoY in FY25, surpassing 1 lakh units.
Hybrid car sales growth has stagnated in recent years.
Government policies favor EVs with lower GST and registration costs.
Manufacturers have opposing views on hybrid vehicle incentives.
- Who
- EV manufacturers such as Tata Motors and Hyundai and Hybrid manufacturers such as Maruti Suzuki and Toyota.
- What
- EV sales are outpacing hybrid car sales growth.
- When
- FY25, with data from January to May.
- Where
- India
- Why
- Due to favorable policies and increasing consumer interest.
Support for Hybrid Vehicles
Support for Electric Vehicles
Incentives
Support for Hybrid Vehicles
Some manufacturers support incentives for hybrid vehicles.
Support for Electric Vehicles
Pure-EV players oppose incentivizing hybrid vehicles.
30% EV Penetration Target
Support for Hybrid Vehicles
Believe incentives are needed for hybrid vehicles
Support for Electric Vehicles
Argue this won't help reach the 30% EV penetration target by 2030.
- EV Sales Growth (Jan-May)
- 4.4%
- Hybrid Sales Growth (Jan-May)
- 2.5%
- EV Sales FY25
- 1,07,541 units
- EV Sales Growth FY25
- 18%
- Hybrid Sales FY25
- 82,700 units
- GST on EVs
- 5%
- GST on Hybrids
- 43%