India's Electric Vehicle Market Surges Past 4 Percent Share in May

India's electric vehicle (EV) market is experiencing significant growth in 2025, with electric commercial vehicle sales rising 84.36% year-over-year in May and the market share increasing to 1.35%. Electric passenger vehicle sales also surged, crossing the 4% market share mark in May, up from 2.6% the previous year, driven by improved battery technology, better range, and reduced costs. Tata Motors leads the electric commercial and passenger vehicle segments, although some manufacturers like Mahindra and Switch Mobility have shown remarkable year-over-year sales increases. Despite this positive momentum, challenges such as global supply-chain constraints, especially concerning rare earth materials predominantly supplied by China, pose risks to production and future sales. The broader Indian auto market is shifting rapidly toward electric mobility, supported by robust rural demand and evolving consumer preferences, although the passenger vehicle segment faces some headwinds from inventory and financing issues. This growth contrasts with Japan's vehicle market, which expanded modestly by 4% in May 2025, with recovery influenced by previous production disruptions but less emphasis on electric vehicles.