India’s EV Sector Raises $1.4 Billion in 2025

By Jony Shekhawat | Published Date : December 15, 2025

Higher late-stage funding shows investors are now backing mature and scale-ready electric commercial vehicle companies in India.

India’s electric vehicle sector has seen strong funding momentum in 2025 so far. According to data shared by Tracxn, the EV industry received around $1.4 billion (Rs 12,180 crore) till mid-November. This is a 27% jump compared to the $1.1 billion raised in 2024. The rise shows growing confidence in EV companies, including those working on electric truck and electric pickup solutions for commercial use.

Investors Attraction and Deals

Table Of Contents

1. Investors Attraction and Deals

2. Late-Stage Funding Drives the Surge

3. Delhi Leads EV Funding in India

4. Big Deals Shape 2025 Funding Story

5. Investor Activity Falls, But Exits Improve

Read More: Astranova Steps Into Commercial Electric Bus Segment

Even though funding value increased, the number of deals dropped sharply. Tracxn’s EV in India Annual Funding Report 2025 shows funding rounds fell to 65 this year, compared to 135 deals in 2024. This clearly means investors are backing fewer startups but putting more money into companies that are already stable and ready to scale. Most of this capital went to electric vehicle makers, including firms building electric truck and electric pickup platforms.

Late-Stage Funding Drives the Surge

The biggest boost came from late-stage funding. Investments at this level more than doubled to $1.1 billion in 2025, up from $536 million last year. This signals that the EV ecosystem is moving beyond early testing stages. According to Tracxn, investors are now focusing on performance and scale rather than ideas alone. In contrast, early-stage funding fell nearly 50%, and seed-stage funding dropped to just $61.2 million, showing reduced risk appetite.

Delhi Leads EV Funding in India

City-wise, Delhi dominated EV funding with around $1.1 billion, largely due to one major deal. Pune followed with $120 million, while Bengaluru raised $105 million. Gurugram and Mumbai were far behind. These cities are seeing strong growth in commercial EV demand, especially in logistics and delivery, where mini truck and electric pickup models are gaining attention for city use.

Big Deals Shape 2025 Funding Story

One of the largest deals of the year came from Erisha E Mobility, which raised a massive $1 billion Series D round in March. The Delhi-based company plans to use the funds to expand its EV three- and 4-wheeler network, improve products, and build manufacturing and hydrogen infrastructure. Other key deals included Euler Motors’ $75 million, EKA’s $57 million, and Blue Energy Motors’ $30 million rounds. Battery Smart also raised $29 million to expand its battery-swapping network, which supports truck and fleet operations.

Investor Activity Falls, But Exits Improve

Investor participation declined in 2025. First-time investors dropped from 63 last year to 32, while international investors also reduced. However, exit activity improved. Acquisitions rose to three, and IPO numbers stayed steady at four. Ather Energy’s IPO in May, valued at $1.4 billion, was the biggest listing of the year. Tracxn notes that the EV sector is now entering a maturity phase, moving away from hype and toward profitable, scale-ready growth, especially in EV commercials.
 

Also Read: MIT WPU Team Develops Safe Liquid System for Hydrogen Transport

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Frequently Asked Questions on Commercial Vehicles

Q1. What are electric commercial vehicles used for in India?

Ans. Electric commercial vehicles are mainly used for goods delivery, city logistics, passenger transport and short-distance operations where low running cost is important.

Q2. Are electric trucks suitable for long-distance travel?

Ans. Electric trucks are currently best for short and medium routes, while long-distance use is improving slowly with better batteries and charging networks.

Q3. Do electric commercial vehicles cost more than diesel ones?

Ans. Initial cost is usually higher, but lower fuel and maintenance expenses help reduce overall operating cost over time.

Q4. Is the charging infrastructure improving for commercial EVs?

Ans. Yes, charging stations and battery-swapping networks are expanding in major cities to support electric trucks and other commercial EV fleets.

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