Winning Bizness Desk
Mumbai. Electric vehicle (EV) sales in India are witnessing a remarkable surge, with their market share climbing to over 4% of total car sales in May 2025. This marks a significant increase from 2.6% in May 2024, highlighting the growing acceptance of EVs among Indian consumers. The rise from 3.5% in April 2025 to 4% in May indicates a steady upward trend in EV adoption.
Sales Figures Reflect Strong Demand
Retail sales data reveals that 12,304 electric cars were sold in May 2025, a substantial jump from 8,029 units in May 2024. Compared to April 2025, when 12,233 units were sold, the May figures show sustained demand. This growth underscores the increasing popularity of electric vehicles, driven by advancements in technology and competitive pricing.
Factors Driving EV Popularity
According to Saharsh Damani, CEO of the Federation of Automobile Dealers Associations (FADA), this milestone reflects India’s progress toward electric mobility. Improved battery technology, extended driving ranges, and reduced prices of EV models have fueled this growth. These advancements have made electric cars more accessible and appealing to a broader consumer base.
Market Leaders Dominate EV Segment
Tata Motors continues to lead the EV market, selling 4,351 units in May 2025, reinforcing its dominant position. JSW MG Motor followed with 3,765 units, securing second place, while Mahindra & Mahindra sold 2,632 units, claiming the third spot. Together, these three companies account for over 87% of India’s electric car market, showcasing their strong influence in the sector.
Challenges on the Horizon
Despite the positive outlook, FADA has raised concerns about potential disruptions in the global EV industry due to supply chain issues. Rare earth minerals, essential for EV battery production, face supply constraints as China, a major supplier, has imposed export restrictions. These challenges could impact EV production and sales in India and worldwide, posing a risk to sustained growth.
Government Support for EV Growth
To counter these challenges and boost the EV sector, the Indian government has introduced new schemes to attract investments in electric mobility. These initiatives aim to strengthen domestic manufacturing and reduce reliance on imported components, fostering a robust EV ecosystem. As India continues to embrace electric vehicles, the combination of consumer demand, industry innovation, and policy support is set to drive further growth.
Key Points:
- Market Share Growth: Electric car sales in India reached a 4% market share in May 2025, up from 2.6% in May 2024.
- Sales Surge: 12,304 EV units sold in May 2025, compared to 8,029 in May 2024.
- Driving Factors: Better battery tech, longer ranges, and lower prices boost EV adoption.
- Market Leaders: Tata Motors, JSW MG Motor, and Mahindra & Mahindra hold 87% of the EV market.
- Supply Chain Risks: Rare earth mineral shortages due to China’s export restrictions threaten EV production.
- Government Initiatives: New schemes introduced to attract EV investments in India.
- Sustained Demand: May 2025 sales slightly higher than April’s 12,233 units.
