India Is Building A Strong EV Ecosystem While The World Only Sees Tesla & BYD – CleanTechnica

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Last Updated on: 1st September 2025, 11:16 am

Tesla dominates headlines. BYD gets the analysis articles. BMW and Mercedes fight for luxury coverage. Meanwhile, three Indian companies have been selling electric cars by the thousands, and most people outside India have never heard of them.

The numbers are straightforward. They aren’t yet in the millions, like Tesla or BYD, but they are nevertheless significant in a market wanting to transition to EVs, mostly because of the lower cost of operations and quiet, smokeless performance. A survey by Park + Research Labs indicated that respondents who have bought EVs identified areas for improvement as accessible and safe public charging points, faster-charging batteries and reduction in EV prices.

Tata Motors sold 3,825 electric vehicles in February 2025. Mahindra moved 2,632 units, up 343% from the previous year. In a country where every car purchase decision involves months of family discussions and calculator sessions, these companies have figured out how to make electric cars work.

Tata Motors: The Market Leader

Tata’s electric lineup covers four strategic price points, each targeting distinct market segments. The Tiago EV costs ₹7.99 lakh ($9,100), positioning it against conventional petrol cars. The Punch EV runs ₹9.99 lakh ($11,400), targeting the compact SUV segment. The Nexon EV starts at ₹12.49 lakh ($14,200) and extends to ₹17.19 lakh across 10 variants. At the premium end, the newly launched Harrier EV hits ₹21.49 lakh ($24,500).

These aren’t placeholder vehicles or compliance cars. The Nexon EV alone has sold over 50,000 units since its launch, becoming India’s best-selling electric SUV. Despite an 11% month-on-month decline in recent data, it maintains its position as the country’s most popular electric passenger vehicle. Taxi fleets in major cities like Mumbai and Delhi increasingly rely on Nexon EVs for their operations, with some fleet operators reporting 40% lower operating costs compared to conventional vehicles.

The Tiago EV’s competitive positioning is remarkable globally — it’s priced within 15% of comparable petrol variants, a gap that shrinks further when government subsidies are applied. This pricing strategy has enabled Tata to capture families upgrading from entry-level petrol cars, a demographic most global EV manufacturers have struggled to reach.

Tata maintains its market leadership through India’s most extensive EV service network, with over 500 charging stations across 180 cities and service centers in 300+ locations. When competitors face supply chain disruptions or struggle with after-sales support, Tata’s infrastructure advantage becomes decisive.

The launch of the Harrier EV in June 2025 represents Tata’s most ambitious electric vehicle yet. Starting at ₹21.49 lakh and extending to ₹28.99 lakh for the AWD variant, the Harrier EV offers up to 627km range with dual battery options (65 kWh and 75 kWh). The AWD model delivers 390 bhp and 504 Nm torque, achieving 0-100 km/h in 6.3 seconds. This flagship model positions Tata to compete in the premium segment previously dominated by international brands.

Mahindra’s Electric Transformation

Mahindra launched two electric SUVs in late 2024 under the new “Mahindra Electric” sub-brand. The BE 6 costs ₹18.90 lakh ($21,500), while the XEV 9e is priced at ₹21.90 lakh ($25,000). Both vehicles represent a complete design philosophy shift, featuring futuristic styling and advanced infotainment systems that differentiate them from Mahindra’s conventional SUV lineup.

In April 2025 alone, Mahindra’s new electric vehicles contributed significantly to overall market growth, with the segment growing 58% to over 12,000 units. The company sold 2,632 EVs with a remarkable 343% year-on-year growth, though this reflects expansion from a small base – Mahindra’s EV sales were minimal in 2023.

The upcoming XUV 3XO EV will complete Mahindra’s electric portfolio at four models, targeting the sub-₹15 lakh segment where Tata currently dominates. Industry analysts predict this launch could capture 8-10% market share within its first year, based on Mahindra’s strong SUV brand equity.

Bajaj’s 2- & 3-Wheeled EV Market Leadership

Bajaj Auto has emerged as India’s electric mobility leader in the two- and three-wheel segments.

In 2024, Bajaj recorded best-ever electric scooter sales of 193,439 Chetak units, representing 169% year-on-year growth. This performance established Bajaj as a serious contender in India’s electric two-wheeler market, which reached 1.1 million units in 2024 with 29% annual growth.

The Chetak’s success provided the foundation for broader electric ambitions. Bajaj became the first manufacturer to exceed 5,000 monthly electric three-wheeler sales in September 2024, achieving 8% market share in a segment that recorded 632,634 units with 57% annual growth in fiscal 2024.

The February 2025 launch of the GoGo brand for electric three-wheelers targets India’s massive auto-rickshaw market. With models priced from ₹3.26 lakh to ₹3.83 lakh and offering up to 251km range, the GoGo lineup addresses commercial operators’ primary concerns about earnings potential and operational reliability.

Bajaj’s approach differs from car manufacturers by focusing on practical urban mobility solutions rather than aspirational transportation. The company leverages existing dealer networks, brand equity, and manufacturing expertise to dominate segments where infrastructure constraints and price sensitivity matter more than advanced features.

The Competition Landscape

MG Motor India, the local subsidiary of Chinese SAIC, operates with a focused two-model strategy. The Windsor EV, priced between ₹12.00-14 lakh ($13,600-$16,000), became MG’s best-selling model with 4,308 units in July 2025 – representing 35% of the company’s total monthly sales. The Comet EV, at ₹7.50 lakh ($8,500), targets urban micro-mobility needs with its compact dimensions and city-focused 230km range.

Together, the top three players — Tata, MG, and Mahindra — control over 90% of India’s electric passenger vehicle market, creating an oligopolistic structure unique among major automotive markets globally. This concentration reflects the challenges international brands face in adapting to Indian price points and infrastructure constraints.

European luxury manufacturers operate in a separate ecosystem entirely. BMW leads the premium segment but with starting prices around ₹70 lakh ($80,000) — nearly four times the cost of mass-market electric SUVs. Mercedes-Benz and Audi combined sell fewer EVs monthly than MG alone, with their vehicles treated as luxury statements rather than transportation solutions.

Korean manufacturers Hyundai and Kia occupy the crucial middle segment. Hyundai’s Kona Electric, despite limited volumes, established credibility for Korean EV technology. The upcoming Creta EV and Carens EV launches in 2025 will test whether Korean brands can achieve the price-feature balance needed for mass-market success. Early indications suggest pricing around ₹15-18 lakh, putting them in direct competition with Mahindra’s new offerings.

Japanese automotive giants Toyota and Maruti Suzuki represent the most significant market validation. When companies known for reliable, affordable transportation commit to electric vehicles, it signals genuine market maturity. Maruti’s e Vitara and Toyota’s first Indian EV are expected to launch with aggressive pricing strategies, potentially disrupting the current three-player dominance.

Chinese influence extends beyond MG through multiple channels. BYD maintains consistent presence in monthly sales rankings, though at smaller volumes. Leapmotor has confirmed the C10 SUV and T03 hatchback for Indian launch, while Vietnamese company VinFast progresses with VF6 and VF7 development, targeting the premium mass-market segment between Indian and European pricing.

Exchange rate: 1 USD = 87.50 INR (August 2025)