Kerala and Delhi have emerged as clear leaders in different electric vehicle segments, with the southern state boasting of a 9.1% electric car penetration in March.
03 Apr 2025 | 2501 Views | By Shruti Shiraguppi & Angitha Suresh
In a significant trend highlighting India's uneven but accelerating transition to electric mobility, Kerala and Delhi have emerged as clear leaders in different electric vehicle segments, according to the latest BNP Paribas research report on India's EV market.
Kerala is setting the benchmark for electric passenger vehicle (EPV) adoption ...
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In a significant trend highlighting India's uneven but accelerating transition to electric mobility, Kerala and Delhi have emerged as clear leaders in different electric vehicle segments, according to the latest BNP Paribas research report on India's EV market.
Kerala is setting the benchmark for electric passenger vehicle (EPV) adoption with an impressive 9.1% penetration rate in March 2025, the highest in the country and substantially above the national average of 2.9%. This coastal state has consistently outperformed other regions, showing a marked increase from its 5.4% penetration rate for the overall 2025 fiscal year.
Several unique factors contribute to Kerala's leading position in electric passenger vehicle adoption. The state boasts the highest per-capita expenditure among all major Indian states, with residents enjoying significant disposable income. Kerala's consumerist society is well-known for its appetite for premium products, from gold to high-end automobiles and costly mobile phones like iPhones, making it fertile ground for EV adoption despite higher upfront costs.
Additionally, Kerala's residential pattern provides a natural advantage for EV ownership. Unlike other high-income regions such as Mumbai and Bangalore, Kerala's population predominantly lives in individual houses and villas rather than apartment complexes, making home charging infrastructure significantly more accessible. Residents can easily park and charge electric vehicles overnight without depending on public charging infrastructure.
The state also benefits from comparatively lower power prices than metropolitan centers like Mumbai, reducing the operational costs of EVs even further. Combined with an existing "car culture" despite strong public transport infrastructure, Keralites have embraced electric vehicles as status symbols and practical transportation options.
Unlike congested cities such as Bangalore, Kerala's relatively free-flowing traffic encourages car ownership and usage. This, coupled with the state's historical openness to environmentally friendly technologies, has created ideal conditions for electric vehicle adoption.
Meanwhile, Delhi continues to dominate the electric three-wheeler (E3W) segment with an extraordinary 86.3% penetration rate as of March 2025. The capital territory has maintained its leadership position throughout FY25, ending the fiscal year with an 83.5% adoption rate, demonstrating the near-complete electrification of its three-wheeler fleet.
Delhi's exceptional E3W adoption can be attributed to several key factors. The capital's notorious air pollution crisis has prompted aggressive policy interventions by the local government, which has actively incentivized the transition to electric vehicles across all segments, with particular emphasis on commercial vehicles like three-wheelers that typically operate for longer hours daily.
Unlike other densely populated metros such as Mumbai and Bangalore, Delhi's urban layout features lower population density due to historical restrictions on high-rise buildings. This spread-out design has inadvertently created more space for parking and charging infrastructure, removing a significant barrier to E3W adoption. Commercial operators can more easily establish charging facilities for their fleets, facilitating the transition to electric vehicles.
These regional success stories provide valuable insights into what drives EV adoption in different market segments. Kerala's consumer market has embraced personal electric mobility, while Delhi's commercial vehicle segment has undergone a remarkable transformation.
The stark regional disparities are evident when comparing with laggard states. Gujarat, for instance, reported just a 1.4% penetration rate for passenger EVs and 5.3% for three-wheelers in March 2025, highlighting the uneven pace of electrification across India.
Other strong performers in passenger vehicle electrification include Karnataka (4.1%) and West Bengal (3.5%), both exceeding the national average. In the three-wheeler segment, Uttar Pradesh (84.6%) and Punjab (77.2%) trail only Delhi in adoption rates.
E3W Segment Leading India's EV Transition
Perhaps the most remarkable story in India's electrification journey is the three-wheeler segment, which has reached a national penetration rate of 59.3% as of March 2025, up from 56% in February. This represents the most advanced electrification of any vehicle category in the country.
The E3W segment has demonstrated that electric vehicles can achieve mainstream adoption in India when the economic case is compelling. The lower operating costs and favorable total cost of ownership have made this segment a natural fit for electrification.
Mahindra & Mahindra remains the market leader in the E3W segment with an 11.3% market share, followed closely by Bajaj Auto, which showed the highest growth in March, expanding its market share to 9% (up 29 basis points month-on-month).
The segment's success extends beyond the leading states, with even traditionally slower-adopting regions showing significant E3W penetration. Tamil Nadu has reached 23.6% penetration, while Karnataka hit 17% in March 2025.
Industry analysts attribute the three-wheeler segment's transition to favorable economics, policy support, and the segment's concentrated urban operations, which minimize range anxiety concerns. Fleet operators have been particularly receptive to electric three-wheelers due to their lower daily operating costs and maintenance requirements.
As India continues its push toward electric mobility, the success stories in Kerala's passenger vehicle market and Delhi's three-wheeler segment, along with the nationwide E3W transition, provide valuable blueprints for accelerating adoption in other vehicle categories and regions. With major manufacturers planning significant EV launches in 2025, including Maruti Suzuki's first EV, the electrification trajectory appears set to continue upward across all segments.