New Delhi: India’s electric vehicle (EV) sector raised $1.4 billion year to date in 2025, up 27 per cent from over $1.1 billion raised in 2024, a report said on Friday.
The funding was concentrated in just 65 funding rounds compared with 135 in the previous year, the report from market intelligence platform Tracxn said.
Electric vehicle manufacturers dominated funding, securing $1.2 billion of the total, with Delhi leading the city rankings with $1.1 billion raised.
Late stage funding surged 105 per cent year on year from $536 million in 2024 to $1.1 billion in 2025 YTD, reflecting renewed confidence in scale-ready, selective and mature startups.
This indicates a transition towards performance-led capital deployment with sector maturity, the report noted.
Early stage funding, however, dropped 49.3 per cent to $226 million from $446 million, while seed stage funding dropped to $61.2 million across 32 rounds from $129 million over 77 rounds in 2024.
“The strong surge in late stage capital, driven by a billion dollar round supporting manufacturing and charging infrastructure, signifies India’s EV ecosystem has moved beyond early experimentation to embrace a phase of measurable, scaled maturity,” Tracxn co-founder Neha Singh said.
“It’s a clear signal that global and domestic investors now see EVs not just as a climate bet, but as a commercially viable, long-horizon opportunity,” she added.
Pune followed Delhi in terms of funding, raising $120 million, while Bengaluru secured $105 million.
The investor base narrowed, with total investors falling from 150 in 2024 to 70 in 2025 YTD, and first time investors dropped from 63 to 32.
Electric vehicle sales rose from about 50,000 in 2016 to over 2 million in 2024, representing roughly 9 per cent of the global EV stock, another recent report said, highlighting a $100 billion export opportunity in auto components.
EV penetration is expected to remain modest at 3–4 per cent, the report said, forecasting electric car volumes in the PV segment at around 1.75 lakh units for FY26. EV sales grew by 83 per cent in FY24 and 11 per cent in FY25, reaching 1.11 lakh units in FY25.
(IANS)
