THIRUVANANTHAPURAM: The state’s automobile sector witnessed a strong revival in 2025, with vehicle registrations climbing to 8.78 lakh, marking a 12.8% growth -- the first double-digit rise in four years. The resurgence was mirrored in the green mobility space, as electric vehicle (EV) registrations crossed the one-lakh milestone, effectively doubling the state’s EV fleet in just four years.
Double-digit growth has historically been rare in Kerala. The last time it happened was in 2017, when it touched 10.3%, before floods and the Covid pandemic dampened demand. Although 2021 recorded a sharp 19.5% jump, it was largely due to the low base effect of the previous year.
Industry experts attribute the latest surge to cuts in GST, rising EV adoption, and smoother production flows following disruptions caused by the Russia-Ukraine war. Kerala’s 2025 growth outpaced the national average of 7.76%.
“The expected industry growth was around 6-8%. The slashing of GST resulted in a spurt in incremental volumes,” said Manoj Kurup, secretary of the Kerala Automobile Dealers Association.
EV adoption has been particularly strong, with registrations rising 28.5% year-on-year to 1,06,993 units in 2025, accounting for 12% of total vehicles registered. The state’s cumulative vehicle count now stands at 1.88 crore.
Transport commissioner C Nagaraju highlighted multiple drivers behind the EV boom: Improved charging infrastructure, better battery efficiency, availability of sleek models, and wider solar energy adoption. He added that high petroleum fuel and lubricant prices have further nudged consumers toward EVs.
While two-wheelers and light motor vehicles continue to dominate growth, Nagaraju cautioned that personalised transport is straining the state’s roads, leading to congestion, pollution, parking shortages, and rising accidents.
The latest National Family Health Survey (NFHS-5) underscores the state’s unique mobility profile. Nearly one in four families (24.2% households) in the state have a car, while the national average is only 7.5%. Neighbouring states lag far behind: Tamil Nadu (6.5%), Karnataka (9.1%), and Andhra Pradesh (2.8%).