Another fiscal year has come to a close and marks another high for India Electric Vehicle Inc. As per the latest retail sales data available on the Vahan portal (April 1, 2025, 6.30am), a total of 1.96 million zero-emission vehicles across segments were sold in FY2025. This constitutes a 17% year-on-year increase (FY2024: 16,81,241 EVs) and translates into an additional 283,590 units.
FY2025’s retail score translates into 5,383 EVs being sold every day across India, improving upon FY2024’s 4,606 units each day or FY2023’s 3,242 units a day. Nevertheless, in comparison to FY2024’s robust 42% YoY growth, FY2025’s 17% growth marks a moderation in demand.
Slowing growth has meant that India EV Inc has once again missed hitting the 2 million sales milestone by a narrow margin of 35,169 units for FY2025.
What has helped maintain the momentum is the good growth in the largest volume segment of electric two-wheelers. With 11,49,307 or 1.149 million units, the e2W industry has scaled a new high and accounts for 58% of total EV retails in FY2025, up 2% from the 56% share it had in FY2024. The closing month of March 2025 saw retail sales of 130,274 units, the second highest after October 2024’s 140,221 units.
Electric three-wheelers, which are witnessing the fastest transition to e-mobility, also registered its best-ever sales albeit narrowing missing the 700,000 milestone. At 699,062 units, the e3W segment clocked 10% growth (FY2024: 632,798 units) to have a 35% share of India EV sales in FY2025. This is, however, down on the 37% share it had in FY2024.
The electric passenger vehicle segment, which comprises zero-emission cars, SUVs and MPVs, has also registered its best-ever fiscal year sales. At a cumulative 107,462 units (for light motor vehicles and light passenger vehicles), FY2025 sales are up 18% YoY (FY2024: 91,321 units).
Total sales of electric commercial vehicles (buses, heavy and light goods carriers) at 8,726 units are up 7% YoY albeit demand for heavy goods vehicles fell by 15% YoY.
INDIA’S EV GROWTH STORY PICKS UP PACE SINCE FY2019
A deep dive into retail sales numbers for the past 12 fiscals reveals just how demand has grown for EVs in India, particularly in the past three years. The charge of the EV brigade can be gleaned from the fact that sales the monthly shift to six-figure sales, which began in festive October 2022 has continued for 30 months on the trot.
Vahan-sourced EV retail sales data (detailed above) reveals that a total of 59,25,424 units have been sold in India since FY2014. Eighty percent – 48,29,403 units – of the 5.92 million EVs sold in the past 12 years have come in just three fiscals (FY2025, FY2024 and FY2023), indicating the continuing demand in the face of high fossil fuel (petrol and diesel) as well as gradually increasing CNG prices.
The government has outlined a strategic shift to e-mobility, and has targeted EVs to account for 30% of its mobility requirements by 2030. Growing consumer awareness about the need to use eco-friendly transport and the wallet-friendly nature of EV cost of ownership over the long run is proving to be a big catalyst to adoption of electric mobility. What is also helping India EV Inc is the demand emanating from the e-commerce industry and logistics players for EVs on two and three wheels, and from taxi fleet operators for electric passenger vehicles.
Meanwhile, recognising the huge business potential, component manufacturers are also upping the ante on localising EV parts, either through full ground-up development or through technology licences. This will lead to enhanced optimisation of costs and in turn EV affordability which is a critical parameter for mass adoption of e-mobility.
April 1, 2025 sees the dawn of FY2026? Will the new fiscal see India EV Inc cross the 2-million retail sales milestone, which the industry has again missed by a narrow margin of 35,169 units? It was the same scenario in CY2024, when EV sales missed achieving 2 million by a little over 50,000 units. Stay plugged into Autocar Proofessional‘s in-depth sales analyses.
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