The electric vehicle segment is set for rapid growth as its penetration in the domestic passenger vehicle segment may touch 12-13 per cent over the next 4-5 years amid favourable government policies and mainstream OEMs driving in models to cater to diverse customer needs, Hyundai Motor India Whole Time Director and COO Tarun Garg said.

There is now clarity in the industry that electric vehicles are the way forward in the country, he added. 

"Clarity was lacking earlier whether it would be EVs or hybrid or any other technology. Now, it is clear that all the policies favour the EVs," Garg told PTI in an interaction.

Mainstream OEMs like Hyundai, Mahindra and Tata Motors are already there in the sector, and now with Maruti Suzuki entering the vertical, it is now clear that the EV penetration is set to rise, he added.

Garg said the EV penetration is now expected to grow steadily till 2030. 

"We expect that the EV penetration will grow from 2.5 per cent to around 12-13 per cent in the next four to five years. The segment will see continuous growth from now on," he added.

‘Tesla’s entry will help grow India’s EV mkt’

BMW Group India is unfazed by the prospect of Tesla entering the electric vehicle market here and feels it will help grow the segment, according to its Managing Director and CEO Vikram Pawah. The group, which sold a total of 1,249 units of electric cars in India across two  brands -- BMW and MINI -- has already sold 646 units in the first quarter of 2025 and is keeping its forecast of 15 per cent of its total sales in India coming from EVs, Pawah told PTI in an interview.