New Delhi, Dec 11 (NationPress) India’s electric vehicle (EV) sector has successfully raised $1.4 billion year-to-date in 2025, marking a significant increase of 27 percent from the $1.1 billion secured in 2024, according to a report published on Friday.

This funding surge was concentrated in only 65 funding rounds, a stark contrast to the 135 rounds recorded the previous year, as reported by the market intelligence firm Tracxn.

Manufacturers of electric vehicles were the primary beneficiaries, obtaining $1.2 billion of the total funding, with Delhi topping the list of cities by raising $1.1 billion.

Late-stage funding saw a remarkable increase of 105 percent year-on-year, jumping from $536 million in 2024 to $1.1 billion in 2025 YTD, highlighting a renewed investor confidence in mature, scale-ready startups.

This shift suggests a move towards performance-driven capital allocation as the sector matures, as noted in the report.

Conversely, early-stage funding experienced a decline of 49.3 percent, falling to $226 million from $446 million, while seed-stage funding decreased to $61.2 million across 32 rounds, down from $129 million in 77 rounds in 2024.

According to Tracxn co-founder Neha Singh, "The substantial increase in late-stage capital, driven by a billion-dollar round aimed at supporting manufacturing and charging infrastructure, indicates that India’s EV ecosystem has transitioned past initial experimentation into a phase of measurable, scaled maturity."

She further stated, "This is a definitive sign that both global and domestic investors are now viewing EVs not merely as a climate initiative but as a viable long-term business opportunity."

Following Delhi, Pune raised $120 million, while Bengaluru secured $105 million.

The investor landscape has narrowed, with the total number of investors declining from 150 in 2024 to 70 in 2025 YTD, and first-time investors decreased from 63 to 32.

Electric vehicle sales surged from approximately 50,000 in 2016 to over 2 million in 2024, which accounts for roughly 9 percent of the global EV stock, according to another recent report that underscores a $100 billion export potential in auto components.

The report forecasts that EV penetration will remain modest at 3–4 percent, anticipating electric car volumes in the passenger vehicle segment to reach around 175,000 units for FY26. EV sales grew by 83 percent in FY24 and 11 percent in FY25, culminating in 111,000 units sold in FY25.