PwC Report: Electric Cars Are Shining, ICE Cars Are Fading
In a telling shift that mirrors global trends, a recent PwC automotive review has painted a sobering picture for the future of internal combustion engine (ICE) vehicles. The report, which reviews electric vehicle (EV) sales and market behaviour in Q1 2025, highlights a 22 percent rise in EV sales across India, even as ICE vehicle sales declined by 2 percent. While this may seem modest at first glance, the implications are significant. The transformation of the Indian auto market is no longer theoretical. It is happening, and happening fast.
EVs Find Their Footing, ICE Cars Lose Ground
Over the years, many analysts predicted that EV adoption in India would lag behind Western and Chinese markets due to infrastructure and pricing challenges. But PwC’s data confirms a quiet revolution underway.
In the first quarter of 2025, EVs not only gained ground but did so at the expense of their fossil-fuelled counterparts. This 22 percent growth in electric mobility is not just a blip. It follows a consistent pattern across quarters, fuelled by a growing basket of models and steadily improving ecosystem support.
ICE vehicles, on the other hand, are showing signs of structural decline. The 2 percent dip in sales might appear marginal, but it breaks a longstanding pattern of post-pandemic recovery. If current trajectories continue, ICE cars could be staring at a slow but certain squeeze.
Policy, Infra, and Price: The Three Pillars of EV Surge
Several factors are pushing this shift. State-level EV subsidies, enhanced by central government incentives, have brought many electric cars closer to ICE pricing. More importantly, the rapid rollout of public and semi-private charging infrastructure has begun to chip away at one of the biggest mental blocks buyers face.
Further tilting the scales are upcoming regulations on emissions, including tighter CAFE norms and early signs of city-level zero-emission zones. While still in early phases, these measures are increasing the operational cost and regulatory scrutiny around ICE cars.
At the same time, manufacturers have started reshaping their portfolios. Tata Motors, for instance, now has a formidable EV line-up across budget and premium segments. Mahindra, too, has shaken up the status quo with the BE6 and XUV.e9, offering bold design and smart tech at accessible price points. These models are not mere concept rollouts. They are production-ready and aimed squarely at volume.
A New Kind of EV Flood: Affordable and Aspirational
A flurry of electric car launches has made EVs far more accessible than before. The MG Windsor, an electric MPV based on a practical yet modern platform, is aimed at families looking to switch from ICE without sacrificing utility. Hyundai has jumped in with the Creta EV, the electric sibling of its best-selling SUV. Tata has lined up the Harrier.EV, which will take their flagship SUV electric while retaining the brand’s rugged image.
What unites these models is their pricing strategy. Unlike the earlier crop of EVs which carried significant premiums, these newer launches are pegged much closer to their ICE siblings. With battery costs stabilising and scale effects kicking in, carmakers now have the pricing muscle to go mass market.
Maruti Suzuki has long been criticised for its slow EV rollout. That is about to change with the expected launch of the eVitara, which could mark a turning point in bringing EVs to the country’s vast entry and mid-range segment. Toyota is expected to follow with the Urban Cruiser EV, aiming for the same customer base.
Global Headwinds, Local Tailwinds
Globally, the EV story is mixed. China is sprinting ahead, with battery electric vehicle sales growing by 55 percent in Q1 2025 and ICE sales dropping for the tenth straight quarter. European markets are rebounding after a brief policy-induced slowdown, with the UK and Germany leading growth in EV adoption.
In contrast, the United States remains somewhat uncertain, with potential cuts to EV subsidies on the horizon. Yet even there, battery electric vehicle sales rose by 18 percent in Q1 2025. The message is clear. While geopolitical variables may affect pace, the direction is fixed.
India, though, has its own unique momentum. Unlike the West, the ICE-to-EV transition is not being driven by regulation alone. It is increasingly becoming a product-led shift. EVs are no longer just about saving the planet. They are also about better tech, more features, and a smoother drive.
From Inflection Point to Irreversible Trend?
The PwC report does not make dramatic predictions. But read between the lines, and it is clear. The ICE era is on a timer. With EV penetration inching upward every quarter and ICE vehicles beginning to see consistent sales contraction, the writing is on the wall.
Carmakers that still rely heavily on ICE vehicles for their bottom line may soon be caught off guard. And for consumers, the expanding EV universe, supported by better value, convenience, and infrastructure, may soon make petrol and diesel cars feel like relics of a past era.
If 2024 was about experimentation and early adoption, 2025 may well be remembered as the year electric mobility started to become mainstream. For ICE cars, the future is not just uncertain. It is beginning to fade.