Electric passenger vehicle sales in India cross 4% first time in May 2025: FADA

Electric vehicles may have been facing multi-dimensional challenges, but the electric car retail sales in May 2025 crossed four per cent in India. It was the first time that electric cars crossed this mark. During the same month a year ago, electric cars sold 2.6 per cent, revealed the data by the Federation of Automobile Dealers Associations (FADA). Also, the data has revealed that May 2025 recorded an uptick from 3.5 per cent in April this year by 0.5 per cent.

FADA has stated that this increasing retail sales data marks a significant shift in consumer adoption of electric cars, signalling growing momentum in the transition towards cleaner mobility. The retail data of electric passenger vehicles shows that the carmakers in the segment sold about 12,304 units, compared to just 8,029 units registered in May 2024. The FADA data also shows that the April retail sale was registered at 12,233 units. On the other hand, the FADA data shows that auto players witnessed a modest rise of five per cent in May compared to the same month last year.

This comes at a time when the passenger vehicle segment suffered a decline, on elevated inventory days and subdued consumer sentiment, particularly in entry-level models, compounded by war-related tensions for border-states like Jammu & Kashmir, Punjab, Rajasthan, Gujarat and margin-money challenges; healthy bookings offset by weak retail conversions, said FADA.

However, FADA projects that global supply-chain headwinds, including rare-earth constraints in EV components, geopolitical tensions, may limit urban consumer sentiment and exert cost pressure.

Meanwhile, the two-wheeler category performed well, registering a rise of 7.3 per cent on a year-on-year basis. According to FADA, robust semi-urban and rural demand driven by auspicious marriage dates, strong rabi harvest, and pre-monsoon pull helped the two-wheeler segment register a year-on-year rise.

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