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India’s EV Market Surges Past 4% as Tata Motors Prepares Major Expansion

New import duty incentives for global brands under a five-year scheme signal a push to complement Tata Motors’ Rs 35,000 crore EV expansion plan.

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Electric Vehicles Charging
Market share of electric cars in India accelerates past 4 pc in May (Xinhua/Guo Chen/IANS)
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Overview

  • Electric vehicles accounted for over 4% of India’s passenger car sales in May 2025, rising to 12,304 units from 8,029 a year earlier.
  • Tata Motors led the segment with 4,351 EV sales in May, followed by JSW MG Motor and Mahindra & Mahindra, together making up about 87% of total EV deliveries.
  • The government’s new EV import scheme lets approved global manufacturers ship electric four-wheelers under a cap of 8,000 units per year at a reduced 15% customs duty for five years.
  • Tata Motors plans to invest up to Rs 35,000 crore through FY30 to launch 30 new passenger vehicle products, including doubling its EV lineup from eight to 15 models.
  • FADA warns that rare-earth material shortages could slow production, while the government targets EVs to represent 30% of total car sales by 2030.