Auto: EV makers hope for festive spark to light up sales

India may see its busiest EV festive season in 2025 with SUVs, luxury cars and scooters set to launch, but rare-earth supply bottlenecks risk delaying rollouts.

Kindly note the image have only been published for representational purposes. Photograph: Kind courtesy, Hyundai Motor Group/Pexels

With festival season around the corner, carmakers are gearing up for new launches during the August-November window, mostly in the electric vehicle (EV) category.

Alongside e-Vitara, Tata Sierra EV, and VinFast SUVs, luxury carmakers will unveil the BMW iX 2025, Audi Q6 e-tron, and Mercedes-Benz CLA Electric.

Mahindra’s Vision S and SXT concepts are progressing toward production.

The two-wheeler segment will see new scooters and premium electric motorcycles, though mass-market e-motorcycles remain at least a year away.

Nikhil Dhaka, vice-president at Primus Partners, said, ‘The August to November festive window could be the heaviest EV launch season India has ever seen. We’re looking at mass-market SUVs, luxury EVs, and accessible scooters all hitting the market at the same time, a rare confluence that could energise both urban and semi-urban demand.’

The first half of 2025 has brought a surge of electric vehicle (EV) activity in India, with global giants and domestic automakers ramping up launches ahead of the crucial festival season.

Photograph: Rajesh Karkera/Rediff and Dominic Xavier/Rediff

Tesla’s long-awaited debut with Model Y in July set the tone, followed by mass-market entries such as the Hyundai Creta EV, Tata Harrier EV, Kia Carens Clavis EV, Hyundai Venue EV, and Mahindra’s BE 6 and XEV 9E.

Tata Safari EV was also confirmed, while two-wheeler makers added fresh options like Kinetic Green DX electric scooter.

Tata Harrier EV, launched on June 3, opened bookings in early July with prices expected between ₹24 lakh and ₹30 lakh.

Kia rolled out its Carens Clavis EV on July 15, starting at ₹17.99 lakh.

In the pipeline, Maruti Suzuki’s first all-electric SUV — e-Vitara — is slated for a September launch with two battery options and a range of up to 500 km.

Vietnamese automaker VinFast is also readying its India entry with the VF6 and VF7, manufactured at its Tamil Nadu plant.

Despite the momentum, industry stakeholders warn of headwinds. ‘EV penetration will grow only if raw material availability is secured,’ said C S Vigneshwar, president of Federation of Automobile Dealers Associations, pointing to rare-earth magnet supply concerns.

Passenger vehicle EV penetration is currently estimated at 4–4.5 per cent, while two-wheelers are at 5–7 per cent.

Analysts note adoption is heavily tied to new product launches, with penetration often plateauing after the initial demand surge.

Analysts flagged reduced incentives, charging infrastructure gaps, and resale value concerns as barriers to faster growth.

Regulatory pressure from stricter emission norms is pushing OEMs to invest, but supply chain bottlenecks especially in sourcing rare-earth materials could delay festive-season rollouts.

‘EV adoption in India is very much launch-driven. We see a spike in penetration after new models hit the market, but it often plateaus without sustained demand drivers. Supply chain issues, especially rare-earth shortages, could slow down the pace we are expecting this festive season,’ Kumar Rakesh, analyst at BNP Paribas added.

Still, the number of upcoming products, from affordable scooters to aspirational luxury SUVs, signals a widening of India’s EV market.

If launches proceed as planned, this festival season could mark a new high point for electric mobility in the country.

Feature Presentation: Rajesh Alva/Rediff