The Indian electric vehicle (EV) market has kicked off the financial year 2024-25 with impressive momentum, registering a significant double-digit growth in retail sales. According to the latest data released by the Federation of Automobile Dealers Associations (FADA), EV retail sales surged by 16.37% year-on-year in the first quarter, crossing a major milestone.
Robust Growth Across Key Segments
The total number of electric vehicles sold at retail in India during the April-June period of FY25 stood at 2,27,236 units. This marks a substantial increase from the 1,95,254 units sold in the same quarter of the previous financial year. The growth was primarily driven by the two-wheeler and three-wheeler categories, which form the backbone of India's EV adoption story.
Leading the charge was the electric two-wheeler segment, which alone accounted for a whopping 1,86,062 units in Q1 FY25. This represents a healthy growth trajectory for a segment that is crucial for last-mile connectivity and urban mobility. The three-wheeler category, a vital part of commercial transport, also showed strong performance with retail sales of 39,363 units during the quarter.
State-Wise Performance and Market Leaders
A closer look at the geographical distribution of EV sales reveals interesting patterns. Uttar Pradesh emerged as the top-performing state, with retail sales of 28,489 electric vehicles. It was closely followed by Maharashtra, which recorded sales of 27,497 units. Karnataka secured the third position with 21,781 units sold, highlighting the continued dominance of these states in the EV ecosystem.
Other states that contributed significantly to the national tally include Tamil Nadu, Rajasthan, and Gujarat. This data underscores that EV adoption is spreading beyond the traditional metropolitan hubs into various regions across the country, supported by state-level policies and increasing consumer awareness.
Passenger and Commercial Vehicle Segments
While the two and three-wheeler segments soared, the four-wheeler categories presented a more nuanced picture. The retail sales of electric passenger vehicles reached 1,743 units in Q1 FY25. Although this number is smaller in volume compared to two-wheelers, it indicates a growing acceptance of electric cars among Indian consumers, bolstered by an expanding model lineup and improving charging infrastructure.
The electric commercial vehicle segment, however, recorded relatively modest numbers with sales of 68 units. This segment is expected to gain pace as logistics and e-commerce companies increasingly look towards sustainable and cost-effective solutions for their fleets.
Driving Factors and Future Roadmap
Several key factors are fueling this consistent growth in EV retail sales. Government incentives under the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme continue to play a pivotal role in making EVs more affordable. Additionally, rising fuel prices, growing environmental consciousness among consumers, and significant investments by automakers in new EV models are creating a favorable market environment.
The data from FADA, which is collected from the Vahan dashboard of the Ministry of Road Transport and Highways, is a reliable indicator of on-ground retail performance. It reflects actual registrations, providing a clear picture of consumer demand as opposed to wholesale dispatches from manufacturers.
The strong start to FY25 sets a positive tone for the remainder of the year. Industry experts anticipate that with the upcoming festive season, new product launches, and continued policy support, the growth trajectory for electric vehicle retail sales in India is likely to accelerate further. The focus now shifts to enhancing charging infrastructure nationwide and introducing more affordable models to achieve deeper market penetration.
