India's EV momentum grows: Sales double YoY in June, says FADA

India's EV sales doubled in June 2025 compared to the previous year, representing 5% of new passenger vehicles. Overall auto sales moderated due to financial constraints and supply issues.

The Federation of Automobile Dealers Associations (FADA) on Monday reported approximately two times growth in the Electric Vehicle (EV) segment in June 2025 on a year-on-year basis. 

According to FADA numbers, in June 2025, out of 100 passenger vehicles that came out on the road, nearly 5 vehicles were EVs, as compared to nearly 2 vehicles in the same month, the previous year. However, overall sales moderated in the month.

"While festival and marriage season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns," said C S Vigneshwar, FADA President.

Specifically, in the two-wheeler segment, EV witnessed a month-on-month rise from 6.07 per cent to 7.28 per cent. And in the commercial vehicle segment, it witnessed a slight uptick.

Additionally, FADA projects a cautiously optimistic outlook for the auto retail sector, anchored by a decisive uptick in government capital expenditure (capex) between June and August 2025, which is expected to strategically focus on roads, railways, metro infrastructure, and green-energy projects. 

This strategic investment is poised to be a key driver supporting growth in the Commercial Vehicle (CV) and Construction Equipment (CE) segments.

June 2025 retail data already reflects this momentum. While overall MoM volumes declined 9.44 per cent, the CE segment registered a significant 44.98 per cent MoM and 54.95 per cent YoY growth, while CVs rose 6.6 per cent YoY despite a modest 2.97per cent MoM decline. 

Early-month deliveries and sustained order pipelines further contributed to CV strength, even as ownership costs rose due to new taxation norms and mandatory AC-cabin regulations.

Also, the monsoon forecast of over 106 per cent of the long-period average (LPA), is expected to enhance rural liquidity and, by extension, drive demand across the auto spectrum, particularly two-wheelers and tractors. 

Besides, the government's commitment to long-term capex in physical infrastructure and sustainability sectors positions the CV and CE markets as direct beneficiaries, particularly as project execution gathers pace post-monsoon onset.