India’s EV retail sales rise 16% in 2025 to 2.27 million units; electric cars jump 77%: FADA

/2 min read

ADVERTISEMENT

Electric passenger vehicles power India’s EV growth as three-wheelers deepen electrification in 2025
India’s EV retail sales rise 16% in 2025 to 2.27 million units; electric cars jump 77%: FADA
EV penetration in passenger vehicles expanded to around 4% in 2025 from 2.4% in the previous year. 

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.

BEVs see a major upsurge among total vehicle offtakes

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.

E2Ws also in cruise mode; TVS attains market leadership

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.

fortune magazine cover
Fortune India Latest Edition is Out Now!
Netflix’s India Decade

January 2026

Netflix, which has been in India for a decade, has successfully struck a balance between high-class premium content and pricing that attracts a range of customers. Find out how the U.S. streaming giant evolved in India, plus an exclusive interview with CEO Ted Sarandos. Also read about the Best Investments for 2026, and how rising growth and easing inflation will come in handy for finance minister Nirmala Sitharaman as she prepares Budget 2026.

Read Now

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.

E3W sales continue to skyrocket

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.

Explore the world of business like never before with the Fortune India app. From breaking news to in-depth features, experience it all in one place. Download Now