EV Auto Sales May 2025: EV Sales Cross 4% Market Share for the First Time

For the first time ever, electric passenger vehicles (EVs) have crossed the 4% mark in overall car sales in India, according to data released by the Federation of Automobile Dealers Associations (FADA). The electric vehicle share stood at 4.1% in May 2025, up from 3.5% in April and a significant rise from 2.6% in the same month last year. This signals a growing acceptance of electric mobility among Indian car buyers.

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FADA CEO Saharsh Damani called it an "important milestone" in India’s journey towards automotive electrification. He attributed this growth to advances in battery technology, longer driving range, and more affordable electric models compared to earlier offerings. For consumers, this means more value-driven EV options are now becoming viable alternatives to petrol and diesel vehicles — especially in urban centres.

Tata Motors retained its leadership in the electric car segment, selling 4,351 units in May. However, the brand reported an 18% decline in EV sales compared to the same month last year. In contrast, MG Motor India — now backed by the JSW Group — posted a staggering 149% year-on-year growth, retailing 3,765 electric cars. Mahindra & Mahindra followed at third place, recording 2,632 EV sales.

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Together, these three OEMs accounted for more than 87% of all electric car sales last month, reinforcing their dominance in India’s passenger EV market. This concentrated market share also suggests that, for now, a handful of players continue to drive the consumer shift towards electric cars.

On a year-on-year basis, total electric passenger vehicle sales rose by 53.24%, indicating healthy long-term growth. However, on a month-to-month basis, sales increased by only 0.58%, hinting at a slowdown in short-term momentum. This flattening could be attributed to both supply-side constraints and seasonal retail factors.

Meanwhile, the overall passenger vehicle (PV) segment — including ICE vehicles — shrank 13.6% month-on-month and 3.1% year-on-year. FADA attributed the drop to geopolitical tensions, particularly the recent India-Pakistan war, which disrupted sales in border states like Jammu & Kashmir, Punjab, Rajasthan, and Gujarat.

Also Read: India EV Market Share Stuck At 2% Even As Global Sales Hit Record 17 Million In 2024

Despite the growing EV penetration, looming supply chain concerns threaten to impact production in the coming months. China’s restrictions on the export of rare earth magnets — critical for electric motors — could cause supply bottlenecks for Indian EV manufacturers. FADA has warned that if the situation does not improve, it may lead to a slowdown in EV production and retail deliveries.

For consumers planning to buy an EV shortly, this could mean longer waiting periods or limited stock for certain models, especially higher-end or performance variants.