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India’s EV Market Charges Forward: Passenger and Commercial Vehicles Drive Growth

In February 2025, India’s electric vehicle (EV) market showcased notable resilience, recording positive growth across several key segments despite persistent industry challenges. Data released by the Federation of Automobile Dealers Associations (FADA) revealed encouraging trends in EV adoption, reinforcing the country’s commitment to cleaner mobility.

Passenger EVs on the Rise

Electric Passenger Vehicles emerged as a key growth driver, witnessing an impressive 18.95% year-on-year (YoY) increase, with a market share now reaching 3.0%. This uptick reflects improving consumer awareness and confidence in EV technology. Leading the pack were:

  • Tata Motors: 3,825 units
  • MG Motor: 3,270 units
  • Hyundai: 738 units
  • Mahindra: 578 units
  • BYD: 254 units

Tata Motors maintained its dominant position, reinforcing its role in mainstream EV adoption.

Three-Wheelers Continue to Shine

The Electric Three-Wheeler segment sustained its remarkable growth momentum, expanding by 4.95% YoY and boasting the highest penetration rate of 56.4%. This performance underscores the critical role of three-wheelers in last-mile connectivity and commercial transport.

Top-performing brands in this segment included:

  • Mahindra: 5,874 units
  • Bajaj Auto: 4,586 units
  • YC Electric: 3,372 units
  • Saera Electric: 2,075 units
  • Dilli Electric: 1,709 units

Two-Wheelers Experience a Dip

Despite maintaining a significant market share of 5.6%, the Electric Two-Wheeler segment experienced an 8.05% YoY decline. While demand for budget-friendly EV solutions persists, industry experts attribute the drop to supply chain challenges and cautious consumer sentiment.

Steady Progress in Commercial EVs

The Electric Commercial Vehicle sector marked moderate growth of 1.1% YoY, crossing the critical 1% market share milestone. This steady progress reflects the industry’s efforts to electrify commercial fleets for sustainable logistics solutions.

Leading contributors in this segment included:

  • Tata Motors: 296 units
  • Switch Mobility: 176 units
  • Mahindra: 116 units
  • Olectra Greentech: 66 units
  • PMI Electro: 57 units

Industry Outlook and Road Ahead

Commenting on these trends, FADA President C S Vigneshwar emphasized the need for sustained collaboration to expand charging infrastructure, enhance policy incentives, and promote EV awareness. Aligning with the Government of India’s EV30@2030 vision, the industry faces a crucial role in achieving ambitious electrification targets.

“With a target of 30% private cars, 40% buses, 70% commercial vehicles, and 80% two- and three-wheelers to be electric by 2030, the auto industry must accelerate efforts to fast-track India’s clean mobility transition,” Vigneshwar added.

As India moves closer to a sustainable transportation landscape, February’s data reflects both progress and areas requiring strategic focus — paving the way for a greener automotive future.

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