EV Sales July 2025: 1.88 Lakh Units Sold; PVs Soar, 2Ws Slip, 3Ws Rule, Says FADA

Electric vehicle (EV) retail transactions in India registered a mixed trend during July 2025, based on data published by the Federation of Automobile Dealers Associations (FADA). The overall electric mobility story is shifting beyond the initial two-wheeler boom, with passenger and commercial EVs recording robust momentum, driven by increased government attention, demand-side traction from fleets, and an expanded product spectrum.

Also Read: Maruti Suzuki Dzire Becomes India's Best-Selling Car in July 2025, Creta and Punch Lose Steam

Market Share Breakdown: Growth with Segmented Momentum

Though EV growth is increasing across segments, the drivers of growth are changing. Two-wheelers are still the volume leader, but growth is slowing, while PVs and CVs are gaining on the back of better offerings and policy push.

Electric Two-Wheelers: The First Signs of Fatigue

Even while contributing over 1 lakh units, the 2W EV segment contracted MoM and YoY, a cause for concern for a segment previously boosted by FAME II incentives and early adopters.

Leading OEMs posted mixed results:

• TVS Motor: -12.03% MoM (22,256 units), still +13.23% YoY
• Bajaj Auto: -14.54% MoM (19,683 units), +10.80% YoY
• Ola Electric: -11.58% MoM, massive -57.29% YoY
• Hero MotoCorp: +36.95% MoM, soaring +107.20% YoY
• Ather Energy: +11.88% MoM, +59.04% YoY

Young entrants such as River Mobility and Kinetic Green expanded more than 500 per cent YoY, though on low bases.

Also Read: India's Auto Retail Down 4.3% in July; Dealers Pin Hopes on Festivals: FADA

What's Causing the Decline?

The waning influence of subsidies, competitive pressures, and a maturing urban market are possible reasons. With FAME II subsidies being cut in mid-2024 and several states still to introduce EV-specific incentives, price competitiveness has deteriorated. Also, urban demand, previously driven by first movers, is tapering off.

Electric Three-Wheelers: The People's EV Keeps Rising

The 3W EV segment continues its dominance with consistent demand from last-mile mobility and low cost of operation. With more than 60 per cent market share and wide OEM coverage, this segment indicates deep rural and semi-urban penetration.

• Mahindra Last Mile Mobility: +41.44% YoY (9,758 units)
• Bajaj Auto: +106.39% YoY
• TVS: +5422.5% YoY (from 40 to 2,209 units)

However, some legacy players like Piaggio saw a 39.15% YoY decline, highlighting competitive churn. 

Also Read: Auto Sales July 2025: Maruti Dominates, But Mahindra Stuns; How Were The Big Four?

Policy-Driven Demand

Government schemes like the PM-eBus Sewa and state EV policies like Delhi, Maharashtra, and Tamil Nadu are facilitating EV penetration, especially in fleet and public transport. The low TCO (Total Cost of Ownership) model is also encouraging auto-rickshaw operators and ride-share aggregators to shift en masse.

Electric Commercial Vehicles: A Silent Disruption Brewing

While still small in terms of volume, CVs are experiencing disruptive growth driven by state transport electrification, government orders, and off-take from logistics companies.

• Mahindra: +323.2% YoY (292 units)
• Euler Motors: 66 units from just 1 last year, +6500%
• PMI Electro: +2350%
• VE Commercial Vehicles: +126.9%

Tata Motors, despite a MoM uptick of 7.77%, showed a 31.9% YoY decline. 

Infrastructure and B2B Demand Drive CV Growth

Adoption is largely fleet-driven, assisted by charging infrastructure incorporated in depots, state transport initiatives, and central schemes such as Faster Adoption of Electric Buses. These buses are mostly shielded from private purchasers' worries such as range fear and meagre charging.

Electric Passenger Vehicles: The Surprise Star Performer

Passenger EVs are becoming the next growth driver with new launches, increasing range, and urbanisation.

• Tata Motors: 6,047 units, +18.57% YoY
• MG Motor: 5,089 units,  +214.91%
• Mahindra: 2,835 units, +446.24%
• Hyundai: 613 units, +938.98%

While Kia, BMW, and Mercedes also posted triple-digit YoY gains, only BYD (-3.57% MoM) and Stellantis (-47.5% MoM) dropped sharply. 

State Policies: The Quiet Forces Behind EV Retail Momentum

As FAME II, the national-level programs, continue to lay the foundation for EV adoption, it's the state-level EV policies that have increasingly conditioned retail sales in June–July 2025. Maharashtra, Gujarat, Tamil Nadu, and Delhi have continued to be leaders by extending extra purchase subsidies, waiver of registration charges, and road tax exemption, primarily on two- and three-wheelers.

For instance, Gujarat’s upfront subsidy of ₹10,000/kWh for e-2Ws and e-3Ws, in addition to central incentives, has contributed to consistently strong numbers in the Western region. Delhi’s scrappage policy and e-rickshaw subsidy model also continue to play a major role in propping up the capital’s massive 3W and low-speed EV volumes, as reflected in July’s 3W sales surge of 14.18 per cent MoM.