Crossing the 4% mark for the first time in India, passenger EV sales see May 2025 marking record highs in adoption. The three-wheeler segment also shows strong performance.
Retail sales of electric passenger vehicles (EVs) in India accounted for 4.07% of total passenger vehicle (PV) sales in May 2025, according to data released by the Federation of Automobile Dealers Associations (FADA). The percentage stood at 3.5% in April 2025 and 2.57% in May 2024.
A total of 12,304 electric passenger vehicles were sold in May 2025, compared to 12,233 in April and 8,029 in the same month last year. The report highlighted that the rising numbers reflect a growing shift in consumer preference towards greener mobility solutions, particularly in urban centres.
The electric trend is not limited to the passenger segment alone. The three-wheeler category has seen a sharp adoption of electric variants, with EVs commanding a 63.21% market share in May 2025. This is a steady rise from 62.68% in April and 55.72% a year earlier.
In volume terms, three-wheeler retail sales stood at 104,448 units in May, with the majority being electric models.
Electric commercial vehicles are also gaining traction, though at a slower pace. EVs accounted for 1.35% of commercial vehicle sales in May 2025, up from 1.06% in April and 0.70% in May 2024.
Construction equipment also began showing EV presence, with 0.20% of machines sold in May being electric, marking their debut in the segment. However, tractor sales remained almost entirely diesel-driven.
FADA attributed the overall positive momentum in two- and three-wheeler EV adoption to strong rural and semi-urban demand, driven by a healthy Rabi harvest, pre-monsoon buying, and auspicious marriage dates.
However, financing limitations and weak sentiment in the entry-level PV segment continue to limit broader growth.
While the EV adoption curve shows promise, FADA has cautioned that geopolitical tensions and shortages of rare-earth materials may impact the supply chain, potentially slowing future growth.
As infrastructure improves and vehicle prices continue to moderate, industry analysts expect EV penetration to increase steadily, supported by regulatory incentives and consumer awareness.
