While the global EV industry grapples with China’s rare earth restrictions, India is surging towards record electric vehicle sales. Significant growth has been observed in every EV segment in India over the past seven months, from January to July. These figures demonstrate that despite China’s imposed restrictions on rare earths essential for the EV industry, India’s manufacturing and sales have remained unaffected. China imposed export restrictions on rare earth magnets on April 4th, critical components in EV production. China is the world’s largest exporter of rare earths. Indian industries have also faced the challenge of rare earth shortages but have successfully sought alternative solutions.
Electric car sales in India have been robust, with 14 companies selling a total of 90,639 units between January 1st and July 31st. This includes 7 Indian and 7 global companies. This represents a substantial increase compared to the 56,814 units sold in the same period last year. Furthermore, it has already achieved 91% of the previous year’s total annual sales of 99,634 units. The Indian electric passenger vehicle industry is expected to surpass this record by August.
The Indian electric two-wheeler industry has also experienced remarkable demand. From January to July 2025, a total of 7,08,905 units were sold, accounting for 62% of the record sales of 1.14 million units achieved in 2024. However, a 4% decrease in sales was recorded in July 2025, following three consecutive months of strong double-digit growth. This data is based on the latest figures available on the vehicle portal, as of August 2, 2025.
Additionally, the electric three-wheeler segment has seen improvements over the past seven months compared to the previous year. Between January and July 2025, a total of 4,30,845 units were sold, reflecting a 14% increase compared to the 3,77,640 units sold during the same period in January-July 2024. This figure has already reached 62% of the record sales of 6,91,302 units achieved in 2024.
