According to recent industry analysis from Market Research Future, the global electric vehicles market is at a pivotal juncture, with growth trajectories diverging sharply between regions. While the market is on an undeniable upward trend, the narrative is no longer monolithic. The electric vehicles market growth is now being driven primarily by a surge in emerging markets, even as some traditional Western leaders face a slowdown .

The shift is stark. In 2025, electric car sales in emerging markets and developing economies (excluding China) grew by around 80%, reaching almost 1.2 million units . This contrasts with the US market, which contracted sharply in the last quarter of 2025 after policy rollbacks eliminated key federal EV tax credits, leading to a 45% drop in new electric car sales compared to the same period the year before . This divergence highlights the critical role of consistent policy support in sustaining EV adoption.

India, in particular, exemplifies this new wave of growth. The Indian EV market is expected to reach $54.41 billion in 2025 and grow at a CAGR of 19.44% to hit $110.74 billion by 2029 . In April 2026, EV sales in India jumped 75%, demonstrating robust consumer demand . This momentum is supported by government schemes like PM E-DRIVE, which delivered 1.13 million EVs in its first year, and a maturing market where total EV registrations across all segments crossed 2.02 million units in 2025, up from approximately 1.96 million in FY25 . The electric vehicles market is clearly entering a new phase of expansion, fueled by affordability, a young demographic, and rising fuel costs in key developing nations .

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