(MENAFN- Market Press Release) December 4, 2025 4:31 am - In 2025, India is expected to sell about 1,38,606 electric cars, 40% more than last year. Thanks to government discounts, new EV launches from brands like Tata, Mahindra, and MG Motor, and more charging stations, more people will switch to EV.

The Indian car market is about to change a lot in the next year. New car trends from around the world are coming to India, matching what people here want - affordable cars, cleaner options, and safer rides. With more people buying cars and government support, this makes for an exciting time.

Electric Vehicles Will Grow Big

In 2025, India is expected to sell about 1,38,606 electric cars. That's 40% more than last year's 99,004. Thanks to government discounts, new EV launches from brands like Tata Motors, Mahindra, and MG Motor, and more charging stations, more people will switch to electric vehicles. Almost all of these will be fully electric vehicles (battery EVs), while hybrids are also gaining popularity (these use both fuel and electric motors). Hybrid sales are doubling, led by Toyota Innova Hycross,

Maruti Suzuki, and Honda.

Right now, the hybrid market is worth about 10.3 billion US dollars and is expected to grow quickly. By 2033, it could reach around 84 billion US dollars, growing at 26.35% every year. This is helping people slowly move from petrol/diesel cars to full electric. Especially with rising fuel prices and stricter pollution rules.

SUVs Are Taking Over

SUVs made up 55% of all car sales in 2024. But this is expected to rise to almost 60% in 2025. This segment is already worth over 22 billion US dollars and is still growing. By 2030, it may cross 30 billion US dollars.

Compact SUVs are the biggest hit. People in cities love their smaller size, especially those under 4 meters, because these get tax benefits. Electric SUVs are also catching up fast and are expected to grow very quickly over the next few years.

Car makers like Maruti Suzuki, Hyundai, Tata, Mahindra, and Kia are adding premium features like digital screens in the dashboard and are making more cars locally to keep prices reasonable. Buyers see SUVs as safe family cars that also give a sense of status.

Smarter Safety and AI in Cars

Safety tech is becoming common in Indian cars. In the first half of 2025 alone, around 8.3% of cars had ADAS. That's a 33% jump compared to last year. About 5.6% of models have Level 2 safety tech, which helps with things like adaptive cruise control, lane control, and collision warnings. SUVs are leading the way here.

Brands like Mahindra, Hyundai, Kia, and Honda, among others, are making sure these safety features are available even in cars under Rs 10 lakh. The government's push for safer cars and buyers wanting these features mean smart safety tech is becoming a must-have.

Also, AI is being introduced to monitor drivers and even respond to voice commands, making driving safer and easier. These smart features don't mean cars are fully self-driving yet. But they do make road travel safer, especially since these systems are designed to handle Indian roads and traffic conditions.

These trends show India is catching up with the global move toward greener, safer, and smarter cars. EV production is expected to jump by 76.3% in 2025. SUVs will continue to lead in sales growth while more cars get smarter with advanced safety tech.

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