Electric Vehicles Update - India's EV Market Growth Driven By Strong Alliances

India's electric vehicle market is witnessing significant growth driven by government initiatives focusing on manufacturing localization, supply chain security, and export competitiveness. As demand increases, both global and local firms are gearing up to introduce new EV models, which opens up opportunities for advancements in charging infrastructure, battery technology, and innovative financing. Major players like Tata Motors, JSW MG Motors India, and Mahindra & Mahindra currently dominate the market, capturing over 90% of the market share. With urban areas facing serious air quality issues, the acceleration of EV adoption is further supported by strategic partnerships, such as Tata's collaboration with Renesas, enhancing the development of a robust EV ecosystem in India.

• Tata Motors (BSE:500570) last closed at ₹700.60 up 1.5%.
• Mahindra & Mahindra (NSEI:M&M) last closed at ₹3,260.90 down 0.2%, near its 52-week high.

In other market news, Anhui Jianghuai Automobile GroupLtd (SHSE:600418) was trading firmly up 6.7% and ending trading at CN¥49.99. At the same time, Tesla (NasdaqGS:TSLA) softened, down 8.2% to end trading at $305.30. The company reported a decrease in earnings and sales for Q2 2025, with results released just 2 days ago.

Mahindra & Mahindra's strategic expansion into high-growth markets is accelerating profitability with strong margin improvements in Auto and Farm sectors. Click here to explore the full narrative on the company's growth dynamics.

Don't miss our 'Market Insights' article on the electrification push, examining key trends and investment opportunities in green energy.

Best EV Stocks

• QuantumScape (NYSE:QS) finished trading at $12.63 down 1.6%. This week, QuantumScape expanded its collaboration with PowerCo to accelerate solid-state battery development, with up to $131 million in payments tied to milestone achievements.
• NIO (NYSE:NIO) closed at $4.83 down 1.8%.
• BYD (SEHK:1211) closed at HK$129.60 down 1.9%. This week, BYD announced a three-year global automotive partnership with Inter Milan, enhancing brand visibility and promoting green mobility.

Make It Happen

• Dive into all 63 of the EV Stocks we have identified, like Elite Material, MRF and Autoliv, right here.
• Want Some Alternatives? AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "India Electric Vehicle Market Analysis Report 2024-2031 | Tata Motors, JSW MG Motors India, Mahindra & Mahindra Control Over 90% of Market Share" from Research and Markets on GlobeNewswire (published 24 July 2025)

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