AMN New Delhi:
The demand for electric vehicles (EVs) in India is accelerating rapidly. According to the latest data from the Federation of Automobile Dealers Associations (FADA), electric cars accounted for over 4 percent of total car sales in May 2025, up significantly from 2.6 percent in May 2024.
In May 2025, retail sales of electric cars reached 12,304 units, slightly up from 12,233 units sold in April. This marks a steady rise in EV adoption, reflecting growing consumer interest and confidence.
FADA CEO Saharsh Damani attributed this growth to improvements in battery technology, longer driving ranges, and reductions in EV prices, calling it a “milestone” for India’s electric mobility journey.
Market Leaders:
- Tata Motors retained its lead by selling 4,351 EV units in May.
- JSW MG Motor secured the second spot with 3,765 units sold.
- Mahindra & Mahindra ranked third, selling 2,632 units.
Together, these three companies hold more than 87 percent of India’s electric car market share.
Challenges Ahead:
FADA also issued a warning about potential disruptions in the supply of rare earth minerals, crucial for EV manufacturing. China, the major supplier of these minerals, has recently imposed export restrictions, which could impact global EV production and sales, including in India.
Despite these challenges, the Indian government remains proactive, having launched a new scheme aimed at attracting investment and positioning India as a global manufacturing hub for electric vehicles, encouraging international companies to set up production facilities domestically.