While the global electric vehicle industry faces challenges due to China’s restrictions on rare earth materials, India’s EV market is experiencing remarkable growth. Sales figures from January to July of the current year indicate strong performance across all EV segments. This demonstrates that the Indian EV sector is largely unaffected by China’s restrictions on rare earth exports, which are critical for the production of EVs. China initiated restrictions on the export of rare earth magnets on April 4th. China is a dominant force in rare earth exports globally, and these actions have significant implications for the EV supply chain. The Indian market, however, has found workarounds to maintain its growth trajectory.
Electric car sales in India have shown impressive results. Between January 1st and July 31st, 14 companies together sold 90,639 units. These figures include both Indian and international manufacturers and represent a considerable increase over the 56,814 units sold in the same period last year. The current sales numbers have already reached 91% of the total annual sales achieved in 2024 (99,634 units). The trajectory suggests the current year will surpass last year’s record.
The electric two-wheeler market in India also reflects strong demand. From January to July 2025, sales reached 7,08,905 units, which represents 62% of the record 1.14 million units sold in 2024. Despite a 4% decrease in July 2025 sales, following a period of continuous double-digit growth, the overall sales performance remains strong. These figures are sourced from the vehicle portal and are current as of August 2, 2025.
Furthermore, the electric three-wheeler segment has demonstrated positive growth compared to the previous year. Sales between January and July 2025 totaled 4,30,845 units, indicating a 14% increase compared to the 3,77,640 units sold during the same period in 2024. This segment has already achieved 62% of the record sales of 6,91,302 units achieved in 2024.
