EV Sales Accounted for 5% of All New Passenger Vehicle Sales in India, in June

Mumbai, 7 July 2025:  According to the Federation of Automobile Dealers Associations (FADA), electric vehicles accounted for 5% of all new passenger vehicle sales during the month-up from just 2% in June 2024.

EV Penetration Hits New High as Buyers Embrace Electric Options

June 2025 marked a key turning point in India’s auto sector, as one in every 20 new passenger vehicles sold was electric. This growth reflects a clear change in buyer preferences and underlines how swiftly India’s EV adoption is advancing across key categories like two-wheelers and passenger cars.

Multiple Factors Contribute to Rapid EV Adoption

FADA attributes this impressive expansion to a blend of favourable conditions. Increased availability of electric models across various segments has played a major role. At the same time, government-led incentives under both central and state-level schemes have made EVs more financially accessible.

Charging infrastructure is also seeing significant progress, particularly in urban and semi-urban regions, giving buyers greater confidence in daily EV usage.

Technology Advancements Make EVs More Competitive

The evolution of battery technology has improved EV performance and reliability. More importantly, the total cost of ownership of EVs is nearing parity with internal combustion engine (ICE) vehicles. These developments have made EVs a practical and cost-effective choice for a wider consumer base.

EV Growth Reflects National Sustainability Goals

India’s EV momentum aligns with the central government’s broader goal of achieving significant electrification in transport by 2030. As infrastructure and manufacturing ecosystems mature further, experts anticipate deeper EV penetration not just in passenger vehicles, but also in segments like two-wheelers and agricultural machinery, including electric tractors.

Positive Outlook for Automakers and Clean Mobility Stakeholders

This double-digit growth in EV sales presents encouraging signals for automakers, policymakers, investors, and clean energy advocates. As India accelerates towards a low-emission transportation future, June’s performance underscores the growing viability and acceptance of electric vehicles in the mainstream market.

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