Electric passenger vehicles power India’s EV growth as three-wheelers deepen electrification in 2025

India’s electric vehicle (EV) retail sales rose 16.37% year-on-year (YoY) to 2.27 million units in calendar year 2025, driven by sharp growth in electric passenger vehicles and steady momentum across two-wheelers, three-wheelers and commercial vehicles (CVs), according to data released by the Federation of Automobile Dealers Associations (FADA).
“CY25 clearly reinforces that India’s electrification journey is no longer a pilot; it is scaling, segment by segment,” said C.S. Vigneshwar, President, FADA. He added that the decisive shift in three-wheelers reflects strong EV economics in last-mile mobility, while growth in passenger and commercial vehicles is being supported by improving product choices and total cost of ownership benefits.
Total EV retail volumes increased from 1.95 million units in 2024 to 22,70,107 units in 2025, underscoring the gradual but steady “mainstreaming” of electrified mobility in the country, as per the auto retail body.
FADA also stated that the standout performer was the electric passenger vehicle (PV) segment, where sales surged 77.04% to 1,76,817 units, up from 99,975 units a year earlier. As a result, EV penetration in passenger vehicles expanded to around 4% in 2025 from 2.4% in the previous year.
Electric two-wheelers (E2Ws), the largest EV segment by volume, posted an 11.36% increase in retail sales to 12,79,951 units, compared with 11,49,416 units in 2024. EV penetration in the two-wheeler segment edged up to 6.3% from 6.1% a year ago, as per the data shared by FADA.
Within the electric two-wheeler segment, competition intensified, with TVS Motor emerging as the market leader. TVS reported a 35% rise in electric two-wheeler sales at 2,98,881 units, overtaking Ola Electric, whose sales fell sharply to 1,99,318 units from 4,00,707 units. Bajaj Auto and Ather Energy followed with sales of 2,69,847 units and 2,00,797 units, respectively.
Electric three-wheelers (E3Ws) continued to be the most deeply electrified category. As per FADA, retail sales grew 15.39% year-on-year to 7,97,733 units in 2025, taking EV share in the segment to a dominant 60.9%. Electric Commercial Vehicles (ECVs), though still at a nascent stage, also showed strong traction, with sales jumping 54.2% to 15,606 units and EV penetration rising to 1.55%.
FADA's Vigneshwar stressed the need for a coordinated push on charging infrastructure, policy continuity, and faster, more inclusive retail financing to accelerate pan-India EV adoption.