EV Sales Cross 4% Mark In May; Signalling Steady Shift To Green Mobility

Retail sales of electric vehicles in India have reached a new high, accounting for 4.06% of overall passenger vehicle sales in May 2025, according to fresh data released by the Federation of Automobile Dealers Associations (FADA).

This marks a noticeable increase from the 2.6% share recorded during the same month last year, and a 0.5% rise over April’s 3.5% share.

The total number of electric vehicles sold in May stood at 12,304 units—an impressive jump from 8,029 units in May 2024.

The steady climb is indicative of a broader consumer shift towards sustainable transport options.

April’s sales had stood at 12,233 units, underscoring consistent month-on-month performance for the EV segment.

Overall Retail Auto Sales Rise Modestly

FADA’s broader data showed that overall vehicle retail sales grew by 5% in May compared to the same month last year.

Segment-wise, two-wheelers led the growth, with a 7.3% year-on-year rise, driven by strong rural and semi-urban demand, auspicious wedding dates, and a robust Rabi crop harvest.

Three-wheelers followed with a 6.2% increase, while the tractor segment recorded a modest 2.7% gain.

In contrast, the passenger vehicle (PV) segment reported a decline in May sales.

FADA attributed this to a combination of elevated inventory levels, weak consumer sentiment in the entry-level category, and war-related tensions in border states such as Jammu & Kashmir, Punjab, Rajasthan, and Gujarat.

Financing challenges and high margin-money requirements further dented retail momentum.

While EV sales continue to trend upward, FADA cautioned that global supply chain disruptions, particularly concerning rare-earth materials essential for EV components, and geopolitical uncertainties could hamper consumer sentiment in urban markets.

These factors may also drive up manufacturing costs in the near term.

Despite these challenges, the strong performance of the EV segment and rural-driven two-wheeler sales suggest a promising direction for India’s auto retail market.

With policy support and improving charging infrastructure, electric mobility is steadily gaining traction, inching the country closer to its clean transport goals.

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