India’s EV sales remained strong in 2025
Federation of Automobile Dealers Associations reports higher EV shares across segments, led by two‑wheelers.
India’s electric vehicle (EV) retail strengthened through 2025, with penetration increasing in two‑wheelers, passenger vehicles and commercial vehicles, according to figures released by India’s Federation of Automobile Dealers Associations (FADA). EVs remained dominant in the three‑wheeler segment, signaling a steady shift in the country’s mobility mix.
The momentum accelerated from September after the country’s Goods and Services Tax (GST 2.0) reform, which improved affordability for mass segments, including electric two‑wheelers. Dealers reported better enquiry conversion and more consistent footfall in urban markets where charging access and financing are more mature.
December 2025 capped the year on a strong note: EV share in two‑wheelers reached 7.40% (vs 6.13% a year earlier), while passenger vehicle EVs stood at ~4%. The broader market also showed diversification, with CNG gaining in PVs even as EV adoption grew, pointing to a multi‑fuel transition.
FADA highlighted that overall retail rose 7.71% year over year in 2025, with rural demand for passenger vehicles outpacing urban growth. This widening participation supports near‑term EV prospects, although financing turnaround times and charging infrastructure remain key to accelerating adoption beyond major cities.
As 2026 begins, dealer sentiment around EV demand is positive, with lower interest rates and improving rural cash flows expected to underpin growth, subject to timely stock allocation, competitive schemes and faster approvals in high‑volume segments.
