New Delhi: India’s electric vehicle (EV) industry is charging ahead at full speed, with a massive 40% year-on-year increase in sales in May 2025, according to data released by the Federation of Automobile Dealers Associations (FADA). Over 2.3 lakh EV units — including two-wheelers, three-wheelers, and four-wheelers — were sold across the country, marking the sector’s highest monthly figures ever.
This record-breaking surge reflects a growing public appetite for sustainable mobility, coupled with policy pushes from both central and state governments.
Two-Wheelers Lead the Charge
The EV boom is being driven largely by electric two-wheelers, which made up almost 63% of all EVs sold in May. Brands like Ola Electric, TVS, Ather Energy, and Bajaj are dominating this space with affordable, high-range scooters aimed at urban commuters.
Ola Electric continues to hold the number one spot with over 38,000 units sold in May. CEO Bhavish Aggarwal tweeted, “We’re seeing mass adoption of EVs across Tier 2 and Tier 3 towns. This is no longer just a metro phenomenon.”
TVS sold 24,000 units of its iQube electric scooter, while Bajaj reported a 110% increase in demand for its Chetak EV.
Four-Wheeler Sales Also Rising
Electric cars are also gaining traction, especially in metro cities. Tata Motors remains the undisputed leader in this segment, with its Nexon EV and Tiago EV contributing to over 70% of total e-car sales. Other automakers like MG Motor, Mahindra, and Hyundai are quickly catching up.
Mahindra’s recently launched XUV400 EV received 7,500 bookings in just two weeks, signaling growing interest in electric SUVs. Meanwhile, luxury EVs from Mercedes-Benz and BMW are gaining favor among premium buyers.
What’s Fueling the Surge?
Multiple factors are contributing to this spike in EV sales:
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Government Incentives:
The FAME-II subsidy scheme continues to provide financial support for buyers. Several states, including Delhi, Maharashtra, Tamil Nadu, and Gujarat, offer additional subsidies, free registration, and road tax waivers. -
Charging Infrastructure Expansion:
The Ministry of Power has installed over 12,000 public EV charging stations across major highways and cities. New EV policies mandate a fast charger every 3 km in metros and 25 km on highways. -
Rising Fuel Costs:
Petrol and diesel prices continue to stay above ₹100/litre in most cities, making EVs a cost-effective alternative. “Running costs of electric scooters are nearly one-tenth that of petrol ones,” said EV analyst S. Srinivasan. -
Better Range and Battery Life:
Battery technology has improved dramatically. Today’s EVs offer a range of 150–500 km on a single charge. Battery warranty periods have increased to 8 years in most new models. -
Green Awareness:
Younger buyers are increasingly concerned about climate change and are making greener lifestyle choices, including switching to EVs. A recent survey by Nielsen found that 62% of millennials in India would consider buying an EV as their next vehicle.
Challenges Remain
Despite the surge, the EV industry still faces hurdles:
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Rural adoption is low due to limited charging infrastructure.
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High upfront costs for EVs, especially four-wheelers, remain a deterrent for middle-class buyers.
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Concerns about battery replacement costs and lack of resale value persist.
Experts believe that with continued support and innovation, these challenges can be addressed over the next 2–3 years.
The Road Ahead
The Indian government has set an ambitious target of 30% EV penetration by 2030, and industry players are optimistic. Tata, Ola, Mahindra, and new entrants like VinFast and BYD India are planning major investments in EV manufacturing and battery plants.
A nationwide Battery Swapping Policy is also in the works, which could reduce charging time to under 2 minutes.
As India accelerates its green transition, EVs seem poised to become the default mobility choice for millions.
