India's Automotive Industry Policy: Promoting Electric Vehicles

EV and CNG Vehicle Sales Trends

2025/11/19

Summary
Automotive Mission Plan 2047
Announcements in Union Budget 2025-26
End-of-life Vehicle (ELV) / Vehicle Scrappage Policy
Proposal of Corporate Average Fuel Efficiency (CAFE 3) standards
Electric vehicle sales in India
Increasing adaptability of CNG vehicles in India

Summary

In recent years, the Indian Government has worked towards an increase in demand for passenger cars, promotion of electric mobility, introduction of new technologies, and attracting new investment in this segment. The Government is also working towards the revival of the mini and small car segment, which is evident from recent GST tax reduction and relaxation in CAFÉ regulations.

Electric vehicle (EV) sales continue to accelerate but need to gain further traction to gain market share over internal combustion engine (ICE) vehicle sales. Demand for compressed natural gas (CNG) vehicles is also growing steadily.

The report provides key government policies for the automotive industry, and an update of sales of alternate fuel and electric vehicles.

Vehicle Sales Volume in India - Sales Share by Powertrain (Jan.–Sep. 2025)
(Source: MarkLines

Automotive Sales Dashboard)

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